Are you ready for part two of the global financial collapse? Many now fear that we may be on the verge of a repeat of 2008 after the events of the last several days. On Friday, Standard & Poor's stripped the U.S. government of its AAA credit rating for the first time in history. World financial markets had been anticipating a potential downgrade, but that still didn't stop panic from ensuing as this week began. On Monday, the Dow Jones Industrial Average dropped 634.76 point... (more)
August 6th | Doug Casey, the chairman of Casey Research, recently sat down with Danielle Park on The Money and Wealth Show to talk about the future of gold, the U.S. dollar, and the Greater Depression - a time period that Mr. Casey believes has just begun. "[The Greater Depression is] going to make what happened in the 1930s and 40s pale in comparison."
Aug. 8 (Bloomberg) -- Investor Jim Rogers, chairman of Rogers Holdings, talks about Standard & Poor's decision to cut the U.S.'s long-term debt rating, its implications for global financial markets, and his investment strategy. Rogers, who also discusses Federal Reserve monetary policy, speaks from Singapore with Rishaad Salamat on Bloomberg Television's "On the Move A... (more)
[...] The selloff in stocks has boosted safe-havens including Treasurys, driving 10-year yields down to 2.35 percent, despite Standard & Poor's downgrade of the U.S. credit rating. Faber, along with Jim Rogers, believes Treasurys are overvalued and that yields will have to rise.
"In my opinion, around this level, government bonds in the US are the short of the century," he added.
... (more)
Aug. 8 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the impact of Standard & Poor's credit-rating downgrade of U.S. sovereign debt on financial markets and his investment strategy. Faber speaks from Chiang Mai, Thailand, with Susan Li on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Interventionists insist that “free market absolutism” is naive, runs counter to reality, puts ideology above empirical facts. Yet I am amazed by how often government policies with a clear historical record of failure are enacted and defended. This is the most baffling and frustrating as it concerns policies that the most elementary of economic understanding will inform us are doomed to create negative effects supposedly unwelcome by those pushing the policies.
James Turk talks to Lew Rockwell about American economics.
There is a financial Katrina coming and you must not rely upon government promises, you must make your own preparations for your friends and your families.
James Turk's GoldMoney website
James Turk's latest book -- The Collapse of the Dollar
Everyone who may have just heard the unprecedented rant by Jim Cramer bashing Bank of America, now that it is at its multi-year lows, may be a little confused. After all it was just on January 6, 2011, when Bank of America was at its multi year highs, that he released the following "report" titled "10 Reasons to Buy Bank of America." We all enjoy the laugh, but we ask Comcast? Is this is the comedian that CNBC wishe... (more)
I don’t often read Paul Krugman but because the NYT was hyping his new column as the most emailed I had to see what was going on. He begins by trashing the S&P for its downgrading of U.S. debt, comparing the rating agency with “young man who kills his parents, then pleads for mercy because he's an orphan.” Krugman seems to regard the down-rating as the sin that cries out to heaven for vengeance... (more)
Liberal firebrand Michael Moore called on President Obama to respond to the U.S. credit downgrade by arresting the leaders of the credit-ratings agencies. [...]
He went on to link approvingly to an article last week in the Guardian, a left-wing British newspaper, about a police raid in Milan against the offices of S&P and fellow ratings agency Moody’s. Italian police were searching for evidence on whether the rating agencies, in the words of a local prosecutor, “respect regulation... (more)
And there you have it: following last Thursday's massive 500 point drop which so many said was a buying opportunity, here comes a -633.78 plunge in the DJIA, which is the 6th largest absolute point drop in Dow Jones Industrial Average history, following 4 larger drops in 2008 following the Lehman bankruptcy, and one back in 2002. We just made history. If the DJIA can drop more than 800 points tomorrow, which it probably will if Bernanke does not announce QE3 in some form, 2011 will be #1! ... (more)
As stock and bond markets across the world tumbled on fears about Italy and Spain, it emerged that police acting on orders from prosecutors had raided the Milan offices of rating agencies Moody's and Standard & Poor's as part of continuing investigations into their role in the recent financial turmoil.
Italian shares plunged on Thursday, with some leading firms losing more than 10% of their value. But the closing level of the benchmark FTSE MIB index was not released for reasons t... (more)
Scumbag governments need scapegoats. - Chris, InfoLib
Hey, those idiots at S&P don't know anything about money and U.S. debt! Says who? The Great Alan Greenspan, that's who! Default? Fuhgeddaboutit! Here is the latest:
Former Federal Reserve Chairman Alan Greenspan on Sunday ruled out the chance of a US default following S&P's decision to downgrade America's credit rating.
"The United States can pay any debt it has because we can always print money to do that. So the
While the impact on Treasurys as a result of the downgrade may be limited (after all the other side of the Atlantic is about as ugly as the US, so where could $8 trillion in marketable USTs practically go... at least for now), the same may not be said about the far smaller, $2.9 trillion municipal market, which is about to see a blanket downgrade tomorrow as S&P warned on Friday night, and of which Matt Fabian of Municipal Market Advisors earlier said that "There will be hundreds and hun... (more)
The U.S. doesn't deserve a AA-plus credit rating, much less triple-A, commodity bull and noted investor Jim Rogers told CNBC on Monday.
Rogers said the country was unlikely to be able to pay off its debt and Standard and Poor's rating cut had come too late and should have happened long ago.
"It seems to me it's physically, humanly impossible for the U.S. to ever pay off its debt," Rogers said. "They can roll it over and continue to play the charade, but the U.S. is ... (more)
Jim Rogers says the US will default, either explicitly or by inflating the dollar. He says farmland, agriculture, and commodities are the place to be, while financials 'after a 30-yr bull market' are done for.
The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating.
In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.” [...]
Marc Faber of http://www.gloomboomdoom.com was interviewed on Bloomberg Tv on 5th August 2011.
He mentioned that the current leg down is not really a major market selloff. That being said, he also said that 'whereby as of today, the markets are extremely oversold'.
He thinks that there could be a 'snap back' rally that does not register a ... (more)
To an extent not fully appreciated by the investing public, financial markets are influenced by human emotion just as much as they are by economic data, corporate earnings, and dividend yields. Of all human motivations, fear is perhaps the most powerful. When people get scared, the “fight or flight” instinct forces us to take action.
Simple dangers prompt simple responses. If we unexpectedly encounter a bear on our driveway, we immediately run into the house and call animal contr... (more)
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.
Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictabl... (more)
Would you invest in a company which is $14 trillion in debt, has over $100 trillion in unfunded liabilities, has revenues falling, and is actively diluting it's shares? U.S. bonds are junk bonds. - Chris, InfoLib
After three-plus years of floundering around, a consensus has finally arrived that we are back in recession. Growth is not happening. The meager statistical growth of the past few years — no one dared claim it amounted to full recovery — was probably illusory.
There is real growth, and there are government statistics. The statistics have misled every gullible person, but now the truth is obvious to everyone. Not only that: we face an impossible debt calamity, the banking industry ... (more)
