Martin Feldstein , professor at Harvard University and the former head of the Council of Economic Advisors under President Ronald Reagan discusses the threat of a Double dip recession and “the real disaster” looming in commercial real estate
Worth Reading
US Debt Crisis May Cause 'Fall of Rome' Scenario
US Government Spends Stimulus Money Faster Than Expected
Bank of England calls 'crisis' meeting for economists
The real effects of bank bailouts: Evidence from Japan
US Government Spends Stimulus Money Faster Than Expected
Bank of England calls 'crisis' meeting for economists
The real effects of bank bailouts: Evidence from Japan
Worth Reading
Nobel Winner Krugman Says ‘End of World Postponed
HSBC : End of Dollar Dominance
IMF to Sell over 403 Tons of Gold
Fed not acting like there’s a recovery
Healthy Banks to Lend to the F.D.I.C
G-20 Push on Banks Threatens Profits From Goldman to Barclays
Jobless figures show demise of the slump may be exaggerated
HSBC : End of Dollar Dominance
IMF to Sell over 403 Tons of Gold
Fed not acting like there’s a recovery
Healthy Banks to Lend to the F.D.I.C
G-20 Push on Banks Threatens Profits From Goldman to Barclays
Jobless figures show demise of the slump may be exaggerated
Nassim Taleb on the economy
On anniversary of Lehman collapse, author of The Black Swan one of the very few who foresaw the crisis can say 'I told you so'.
Nassim Nicholas Taleb is one of those people who can say, “I told you so.” For the past decade, he's been warning that the global economy has become far more vulnerable to unpredictable events that can cause vast disruption. He famously foresaw the credit crunch that brought the financial system to its knees.
He says the Economy still has the same disease ,His thoughts on Economy
Worth Reading
Bernanke : Recession is over
US Credit shrinking at Great Depression rate
Trade War Brewing Between US & China
US Economy Faces Big Test Next Month: Meredith Whitney
US Credit shrinking at Great Depression rate
Trade War Brewing Between US & China
US Economy Faces Big Test Next Month: Meredith Whitney
European Recovery Unlikely to Sustain
The European Commission today forecast that Europe would return to positive growth by the end of the year but that the recovery might not be sustainable in 2010.
European Commission warns that for next year uncertainty is rife. "There are reasons to believe that the recovery could prove volatile and sub-par," it said, adding the full effect of the economic crisis on labour markets and public finances was still to be faced.
Full Story
Worth Reading
Nobel Laureate Joseph Stiglitz "Banking Problems Are Now Bigger Than Pre-Lehman with the too-big-to-fail banks having become even bigger"
Not just Lehman Brothers 10 more banks should have failed, for the financial system to clean itself up : Jim Rogers
The Man nobody wanted to hear, Global Banking Economist who predicted the crisis
The Hard Truth About Financial Regulation
Greenspan: Gold Rally Signals a Move Away from Paper Currencies
Not just Lehman Brothers 10 more banks should have failed, for the financial system to clean itself up : Jim Rogers
The Man nobody wanted to hear, Global Banking Economist who predicted the crisis
The Hard Truth About Financial Regulation
Greenspan: Gold Rally Signals a Move Away from Paper Currencies
A vigorous Economic recovery in US, says ECRI
The Economic Cycle Research Institute, a New York-based independent forecasting group expects a vigorous recovery in US economy against that of moderate recovery expected by general consensus.
Full article from reuters
Full article from reuters
The Last days Of Lehman : BBC Documentary
BBC Documentary Depicting the Events during the last few days before the Collapse of Iconic Wall street Giant Lehman Brothers.
United Nations Calls for New Reserve Currency
Following the BRIC nations China, India, Brazil and Russia , the UN has now raised its call for creation of a global reserve bank to issue a new reserve currency replacing the dollar.
(Bloomberg) -- The dollar’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation, the United Nations said.
Full Article
Obama repeating the mistakes of "Great Depression"
According to a new study endorsed by Nobel laureate James Buchanan, the Obama administration and US Policy makers are repeating the mistakes made by President Roosevelt During the 1930's that pushed US into a serious depression that lasted over a span of 10 years.
The reports say employing deficit spending and increased state intervention President Obama will ultimately hamper the long-term growth potential of the US economy and may risk delaying full economic recovery by several years.
Read the Full Story here
The reports say employing deficit spending and increased state intervention President Obama will ultimately hamper the long-term growth potential of the US economy and may risk delaying full economic recovery by several years.
Read the Full Story here
Nifty, Sensex Scale new 52 week Highs
On the back of positive Global cues and reduced fears over the effects of Drought, Indian Market continued its 6 month rally to scale new 52 week highs in the bourses.
The broader Indices have clocked in more than 100% gains since the Bottom made in early March 2009, Mid caps have joined the party and are surging to new highs. The mood in the markets is positive with expectations of markets to reach 5000 levels in coming sessions.
However RBI has raised concerns over inflation , according to RBI governor Inflation is becoming a concern sooner than expected. Food inflation is becoming a serious worry with the country facing a drought situation. Nomura Securities expects Inflation to hit 6.5% by march 2010.
Finance Minister Pranab Mukerji on his return from the G20 Meeting in London has said Indian growth is likely to decelerate on the back of continued fall in exports.
The broader Indices have clocked in more than 100% gains since the Bottom made in early March 2009, Mid caps have joined the party and are surging to new highs. The mood in the markets is positive with expectations of markets to reach 5000 levels in coming sessions.
However RBI has raised concerns over inflation , according to RBI governor Inflation is becoming a concern sooner than expected. Food inflation is becoming a serious worry with the country facing a drought situation. Nomura Securities expects Inflation to hit 6.5% by march 2010.
Finance Minister Pranab Mukerji on his return from the G20 Meeting in London has said Indian growth is likely to decelerate on the back of continued fall in exports.
China alarmed by US money printing
China is beginning to show distress over US credit easing , According to Cheng Siwei a top member of the communist regime in china . He sees a risk of serious decline in Dollar over next few years that may offset a change in China's Foreign reserve policy
"(telegraph.co.uk) -- We hope there will be a change in monetary policy as soon as they have positive growth again," Siwei said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
Full Article
IMF predicts Slow Growth Recovery
International Monetary Fund has revised upwards it growth Forecast for 2010 to 2.9% against earlier forecast of 2.5% according to reports.
Earlier World Bank President Pointed out that India , China along with other Developing Economies will play crucial role in the Economic recovery
Earlier World Bank President Pointed out that India , China along with other Developing Economies will play crucial role in the Economic recovery
Worst of slump ahead of us, says this Economist
Ann Pettifor is a member of a select club — the seers who saw it all coming. Now the economist, who predicted the credit crunch as far back as 2003, believes that the worst is yet to come unless there is radical reform of the financial system.
Six years ago she parodied the International Monetary Fund’s annual economic forecast with her own — The Real World Economic Outlook. Then, in 2006, her book The Coming First World Debt Crisis, warned that rich countries were heading for a debt crisis that would overshadow anything seen in the developing world. Both were ridiculed.
US Unemployment rate at 26 year high of 9.7%
(Bloomberg) -- The pace of U.S. job losses slowed in August as signs emerged that the recession is ending, while the unemployment rate reached a 26-year high, underscoring threats to consumer spending gains in the recovery.
Employers cut 216,000 from payrolls, fewer than forecast, after a 276,000 drop in July that was larger than previously reported, Labor Department data showed today in Washington. The jobless rate jumped to 9.7 percent from 9.4 percent.
Full story
Employers cut 216,000 from payrolls, fewer than forecast, after a 276,000 drop in July that was larger than previously reported, Labor Department data showed today in Washington. The jobless rate jumped to 9.7 percent from 9.4 percent.
Full story
US Commercial Mortgage : The Next Crisis ?
A commercial mortgage is similar to a residential mortgage, except the collateral is a commercial building or other business real estate. A wave of commercial mortgage delinquencies looms as a potential threat to recovery
FDIC Chairman Sheila Bair in an interview said that commercial mortgages may run more banks out of business this year and next. Bair also said commercial real-estate loans were "catching up" with residential mortgages as a threat to banks' balance sheets. "Commercial real estate is a looming problem.
It's going to be a bigger driver of bank failures toward the end of this year and into next year," she said. So far this year, 84 U.S. banks have failed
Economic Data Watch - 1.9.09
UK Manufacturing Purchasing Managers’ Index slips to 49.7 in August, Sparking Fears on the sustainability of the recent economic recovery,
The jobless rate in the 16 nations that use the euro climbed to a new 10-year high of 9.5 percent in July despite other signs that the economy is starting to recover, Full Story
US ISM index of national factory activity rose to 52.9 in August from 48.9 in July, A reading above 50 indicates expansion in the manufacturing sector.Full Story
The jobless rate in the 16 nations that use the euro climbed to a new 10-year high of 9.5 percent in July despite other signs that the economy is starting to recover, Full Story
US ISM index of national factory activity rose to 52.9 in August from 48.9 in July, A reading above 50 indicates expansion in the manufacturing sector.Full Story
Macro Hedge Funds betting against US recovery
Paul Tudor Jones a Famed trader, billionaire hedge-fund manager who outperformed peers last year, is wagering that Goldman Sachs Group Inc. and Morgan Stanley got it wrong in declaring the start of an economic recovery in US.
Bloomberg : Jones’s Tudor Investment Corp., Clarium Capital Management LLC and Horseman Capital Management Ltd. are taking a bearish stand as U.S. stock and bond prices rise, saying that record government spending may be forestalling another slowdown and market selloff. The firms oversee a combined $15 billion in so- called macro funds, which seek to profit from economic trends by trading stocks, bonds, currencies and commodities.
Full Article
Stiglitz : Days numbered for Dollars Dominance
Nobel Price winning Economist Joseph Stiglitz on the Enormous Fiscal Deficit staring at US and the Role of Dollar in coming years
From washingtonpost : Beware of deficit fetishism.Last week we learned that the national debt is likely to grow by more than $9 trillion. That's not great news -- no one likes a big deficit -- but President Obama inherited an economic mess from the Bush administration, and the cleanup comes with an inevitably high price tag. We're paying it now.
There are no easy options. When financial crises strike, economic growth declines and living standards drop, resulting in lower tax revenues and greater need for government assistance -- all of which leads to higher fiscal imbalances.
What really matters is not the size of the deficit but how we're spending our money. If we expand our debt in order to make high-return, productive investments, the economy can become stronger than if we slash expenditures.
Full Article
Elliot Wave Expert Warns Again that Rally is over
Robert Pretcher of Elliot wave International warns again that US stock market rally is done and turnaround is likely around the corner. He shares his highly bearish view on US stocks
Click here for the Audio Interview link.
Click here for the Audio Interview link.
China A Huge Bubble
Chinese Markets Tanked more than 6% in yesterdays Trade sending Jitters across Global Markets.Former chief investment strategist at Merrill Lynch Richard Bernstein says China’s economy is overheating and that investors should avoid its stock market.
“China is an immense credit bubble that's going on right now,” he tells CNBC.
“I would actually rather invest into the U.S. right now than invest in China." Chinese bank loans jumped 30 percent in the first half of the year.
"They have massive overcapacity and their solution to that problem was to build more capacity over that," says Bernstein, now CEO of Bernstein Capital Management.
He says that those who believe China’s economy will lead a global economic recovery are mistaken.
