All Posts Tagged With: "deflation"
A ‘New Wave’ of the Credit Crisis Threatens Banks
A “new wave” of the credit crisis is now battering banks and lenders that steered clear of toxic subprime-related loans, says The Washington Post.
Late payments on home-equity loans are at a record high, and delinquency rates on loans for cars, small businesses and construction are at levels not seen in a decade or more — all bad news for lenders, regardless of their subprime exposure.
Of course, the bad news isn’t limited to the financial sector. Mike Burnick in the Offshore A-Letter warns of that a triple whammy of deflation, inflation, stagflation is also threatening the global economy…
Inflation Goes Global
“Say goodbye to your money!”…bursting bubbles always lead to the same things…Inflation: Enemy Number Two…what kind of world would it be if people always behaved sensibly? Sicking “the fuzz” on terrorism…the bubble that always ends in the perp walk…and more!
Deflation, Inflation, Stagflation…Take Your Pick
The “official” inflation rate in the U.S. jumped 4.2% in the 12 months to May. That’s the fastest rate of price increases in more than 10-years - mainly due to… you guessed it: soaring food and fuel prices.
Why It Pays to Hang On to Gold
When gold was going for $300 an ounce and oil for $25 a barrel, it was easy to know where to put your money.
What Has Really Changed?
What has really changed?…importing inflation…hoping to prove Friedman wrong…Can the U.S. central bank really begin fighting inflation in a serious way? Ah, dear reader - there’s a cruel twist to this story…The cure for high prices is high prices…and so the global economy lurches forward…and more!
Soros: Oil Prices ‘A Bubble in the Making’
Billionaire investor George Soros has told Congress that the oil market is “a bubble in the making.”
“You hear it everywhere in the press… ‘Oil is in a bubble and it’s all down to speculators driving up the price,’” says Garry White in his Garry Writes newsletter.
“But I’m telling you now, they are all wrong. The real driver of the price of oil is supply and demand. Long-oil speculation is not rising – it’s actually falling.
Bernanke: No More Rate Cuts
The US dollar made a comeback after Federal Reserve chief Ben Bernanke warned that a weaker US currency encouraged inflation and said there would be no more rate cuts for the time being.
The greenback climbed more than 1 cent against the euro, and the price of gold dropped $8 after Bernanke’s remarks.
“All inflationary measures are rising and have been for over a year now,” says Keith Fitz-Gerald in Money Morning, “despite the fact that the Fed has apparently only just recently noticed inflation is rising faster than it would like.”
Manufacturer Data Better than Expected
A severe US recession is less likely following better-than-forecast May data from US manufacturers. This from Bloomberg:
Demand from overseas for U.S.-made products is helping to keep factories running even as spending by American consumers and businesses slows. The improvement signals the U.S. may be able to avoid a deep and protracted economic slowdown as the housing slump worsens and food and fuel prices soar.
Dollar Rises On Traders’ Hopes of Escaping Recession
The US dollar looks set to make a second straight monthly advance against the yen and euro as gains in stocks showed traders are cautiously optimistic the economy may not slide into recession after all.
“The idea that the Fed will continue to cut rates has been completely put to bed and the market is now flirting with the idea of a rate hike. That has given the dollar a boost,” said Alan Ruskin, head of international currency strategy at RBS Greenwich Capital Markets in Connecticut, in Bloomberg. More from that story:
The Wrong Kind of Bubbles
A typical financial tale – where nothing goes as hoped for, and everything goes as it should…*** The rise of speculative capital…pumping up a bubble with a chip on its shoulder…*** The three vicious cycles we must face…an interesting TIME cover…and more!
Latest News
- Fannie and Freddie Bailout to Cost Taxpayers $25bn3:41pm CDT
- Follow Sovereign Wealth Funds Into Oil-Rich Southeast Asia12:14pm CDT
- Cal-Maine Foods (CALM): The Perfect Downturn Stock10:51am CDT
- Housing Bill a Major Threat to Privacy10:03am CDT
- If Offshore Drilling Ban Is Lifted Prepare for Huge Profit Play9:21am CDT
- 5 Reasons to Buy Uranium Stocks Now4:08pm CDT
- One in Ten US Mortgages Owned by Foreigners2:08pm CDT
- GE Redefines its Business by Breaking with Tradition and Expanding Overseas12:51pm CDT
- Paulson Continues to Advocate Potential $25 Billion Bailout of Fannie Mae and Freddie Mac12:36pm CDT
- Schlumberger (SLB): The Safest Play on Emerging-Market Oil12:35pm CDT
- US Stock Rally Is a Dead-Cat Bounce12:11pm CDT
- Resources Stock Roundup Wednesday July 23, 200811:28am CDT
- Base Metals Mostly Lower, but Lead is on a Tear as Inventories Skid11:16am CDT
- Crude Falls Off, Tropical Storm Dolly Will Do No Damage10:54am CDT
- Dollar Rushes Higher, Treasury and the Fed Make Support Talk10:31am CDT
- Precious Metals Take a Hosing; Other Markets Line Up Hard Against Them10:27am CDT
- How to Profit From Airlines’ Push for Fuel Efficiency10:23am CDT
- Congress Never Agrees With OPEC… Until Now9:02am CDT
- Why Invest in ETFs?8:39am CDT