page-loading-spinner
Home Economy

Economy

Image | GM cuts off their nose
GM cuts off their nose
 by Chris Martenson
If I were to be
exceptionally sarcastic here, I would note that it is lucky for GM and
its dealers that there was 3.3% GDP growth last quarter. If I were to
shrug off the GDP report as hopelessly inaccurate, I would observe that
when an auto manufacturer cuts off a $2.1 billion dollar (annually!)
distributor of its products over concerns about the financial health of
that entity, then there is a deep recession underway.
GM cuts off their nose
 by Chris Martenson
If I were to be
exceptionally sarcastic here, I would note that it is lucky for GM and
its dealers that there was 3.3% GDP growth last quarter. If I were to
shrug off the GDP report as hopelessly inaccurate, I would observe that
when an auto manufacturer cuts off a $2.1 billion dollar (annually!)
distributor of its products over concerns about the financial health of
that entity, then there is a deep recession underway.
Image | Prime foreclosures surge
Prime foreclosures surge
 by Chris Martenson
Wow, with three
exclamation points. The fact that PRIME foreclosures have now moved
past SUBPRIME foreclosures is a big deal. In case you don’t know, the
Hope Now program is a government-sponsored affair that was initiated
very early on in the housing/credit bust. Its intent was to help
borrowers avoid foreclosure by renegotiating the terms of their
deal(s).
Prime foreclosures surge
 by Chris Martenson
Wow, with three
exclamation points. The fact that PRIME foreclosures have now moved
past SUBPRIME foreclosures is a big deal. In case you don’t know, the
Hope Now program is a government-sponsored affair that was initiated
very early on in the housing/credit bust. Its intent was to help
borrowers avoid foreclosure by renegotiating the terms of their
deal(s).
Image | Fuzzier than ever – GDP reported to be 3.3%
Fuzzier than ever – GDP reported to be 3.3%
 by Chris Martenson
A
truly laughably fraudulent GDP report was released by the government
today.  However, we’re getting close to this just being a sad parody of
Soviet crop reports of old, which were famous for being utterly out of
alignment with reality.
Fuzzier than ever – GDP reported to be 3.3%
 by Chris Martenson
A
truly laughably fraudulent GDP report was released by the government
today.  However, we’re getting close to this just being a sad parody of
Soviet crop reports of old, which were famous for being utterly out of
alignment with reality.
Image | Record bank debt coming due
Record bank debt coming due
 by Chris Martenson

And here’s
the data I’ve been waiting for. To the exhaustive pile of new borrowing
that the US government needs to shoulder, we can add $871 billion of
debt that financial firms will need to somehow fund at the exact same
time. I will be more than a little surprised if this does not result in
either drastically higher interest rates, or massive inflation.
Record bank debt coming due
 by Chris Martenson

And here’s
the data I’ve been waiting for. To the exhaustive pile of new borrowing
that the US government needs to shoulder, we can add $871 billion of
debt that financial firms will need to somehow fund at the exact same
time. I will be more than a little surprised if this does not result in
either drastically higher interest rates, or massive inflation.
Image | Problem banks expand 30%
Problem banks expand 30%
 by Chris Martenson

It’s worth
noting that not every bank on the problem list will fail, and not every
failure will be on the list. To my knowledge, IndyMac was not on the
list prior to failing. But the trend here tells us something
meaningful; a 30% increase in problem banks in one quarter says we’re
still in the early stages of this credit crisis.
Problem banks expand 30%
 by Chris Martenson

It’s worth
noting that not every bank on the problem list will fail, and not every
failure will be on the list. To my knowledge, IndyMac was not on the
list prior to failing. But the trend here tells us something
meaningful; a 30% increase in problem banks in one quarter says we’re
still in the early stages of this credit crisis.
Image | Home prices drop
Home prices drop
 by Chris Martenson
We’ve had
damaging housing busts in the past, but they’ve always been contained
to a specific region. Houston in the 1980’s and Florida in the 1920’s
taught us that even a localized housing bust could spread ripples of
discomfort far beyond their borders. This data showing that NO cities
in the index saw a price gain deserves some notice.
Home prices drop
 by Chris Martenson
We’ve had
damaging housing busts in the past, but they’ve always been contained
to a specific region. Houston in the 1980’s and Florida in the 1920’s
taught us that even a localized housing bust could spread ripples of
discomfort far beyond their borders. This data showing that NO cities
in the index saw a price gain deserves some notice.
Image | Big three ask for bailout
Big three ask for bailout
 by Chris Martenson

I know they’ve
wrapped it in other language such as “retool to make more fuel
efficient vehicles,” but the truth is that any money they receive will
disappear into the black holes that reside at the center of each
company. Besides the fact that they really should not have been caught
unawares again, I think that GM, Ford, and Chrysler should provide
clear plans for how they intend to return to profitability using
taxpayer money.
Big three ask for bailout
 by Chris Martenson

I know they’ve
wrapped it in other language such as “retool to make more fuel
efficient vehicles,” but the truth is that any money they receive will
disappear into the black holes that reside at the center of each
company. Besides the fact that they really should not have been caught
unawares again, I think that GM, Ford, and Chrysler should provide
clear plans for how they intend to return to profitability using
taxpayer money.
Image | Home prices still not low enough to trigger real demand; more weakness ahead
Home prices still not low enough to trigger real demand; more weakness ahead
 by Chris Martenson

Even at this late
stage, we still get these same tired articles, where the NAR churns out
some statistics showing improving sales and the media tirelessly
trumpets the results.

As always, the fact is left out that bank repossessions and foreclosure auctions count in these results.
Home prices still not low enough to trigger real demand; more weakness ahead
 by Chris Martenson

Even at this late
stage, we still get these same tired articles, where the NAR churns out
some statistics showing improving sales and the media tirelessly
trumpets the results.

As always, the fact is left out that bank repossessions and foreclosure auctions count in these results.
Image | Repo Man calls
Repo Man calls
 by Chris Martenson

Even as the
government stubbornly clings to the illusion that we are not yet in a
recession (“Look! GDP is still positive and inflation is only 1%!), the
anecdotes from the real world tell a very different story.

By the time people are coughing up $300k boats and motor homes in “record amounts,” we are deep into recession territory.

 

Repo Man calls
 by Chris Martenson

Even as the
government stubbornly clings to the illusion that we are not yet in a
recession (“Look! GDP is still positive and inflation is only 1%!), the
anecdotes from the real world tell a very different story.

By the time people are coughing up $300k boats and motor homes in “record amounts,” we are deep into recession territory.

 

Total 2177 items

Community

Top Conversation

 The Great Taking With David Rogers Webb - Part 2
From time to time you have seen me discuss the synchronized markets, where global markets like the Dow Jones, S&P 500, and Euro Stoxx 50 move in a perplexing, synchronized rhythm.  David Webb says they aren't really markets anymore, but a simulacrum. What could possibly go wrong by having fake markets? In this second part of our conversation David Rogers...
Image | cmartensonby cmartenson
248 63
View the conversation

Top Comment
caffeinatedengineerby caffeinatedengineer
31
View the comment
ImmuneMist

ImmuneMist

Learn more
Sekur

Sekur

Learn more