February 5, 2010US Government Will Go Bankrupt But Before That We Will Have High Inflation
“Maximum within 10 years time more than 35% of tax revenues will have to be used to pay the interest on the government debt and then you are in trouble – because then there will be not enough money out of the budget to pay for other stuff. I’m convinced the US government will go bankrupt, but not tomorrow. And before they go bankrupt, they’ll print money, and then you get high inflation rates, you have a depression and eventually they’ll go to war.”
in rt.comMarc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
George Soros: Real Threat Of A Double Dip Recession In The United States
George Soros sees a real threat of a double dip
recession in the United States because there is increasing concern about the budget deficit and the growing national debt and that diminishes the chances of additional stimulus:"The markets are now stabilized. The premiums have shrunk back to normal levels. So that's fine. And the economy has begun to move forward. But it's only moving forward because it's pushed by the stimulus. And that's particularly true in the United States. At the same time now, there's increasing concern about the budget deficit and the growing national debt. And that will stand in the way of additional stimulus. And that creates-- I think a real threat-- of a double
Feb 3, 2010
George Soros sees a real threat of a double dip
recession in the United States because there is increasing concern about the budget deficit and the growing national debt and that diminishes the chances of additional stimulus:"The markets are now stabilized. The premiums have shrunk back to normal levels. So that's fine. And the economy has begun to move forward. But it's only moving forward because it's pushed by the stimulus. And that's particularly true in the United States. At the same time now, there's increasing concern about the budget deficit and the growing national debt. And that will stand in the way of additional stimulus. And that creates-- I think a real threat-- of a doubleFeb 3, 2010
Paul Volcker`s Plan To Fix The Financial System
Paul Volcker expose
d his plan to fix the financial system in a NY Times op-ed this weekend. Here are the plan`s highlights:1 - Prevent banks from owning hedge funds and other proprietary trading vehicles 2 - Give the government resolution authority to step in, liquidate, or sell any firm it deems to be in trouble3 - Make shareholders, management, and bondholders pay for any costs associated with thisThis plan is targeted to solve the "Too Big To Fail" issue. Under Volcker's plan, big firms would be allowed to fail in an orderly fashion, with their owners and lenders taking the hit.
Paul Volcker expose
d his plan to fix the financial system in a NY Times op-ed this weekend. Here are the plan`s highlights:1 - Prevent banks from owning hedge funds and other proprietary trading vehicles 2 - Give the government resolution authority to step in, liquidate, or sell any firm it deems to be in trouble3 - Make shareholders, management, and bondholders pay for any costs associated with thisThis plan is targeted to solve the "Too Big To Fail" issue. Under Volcker's plan, big firms would be allowed to fail in an orderly fashion, with their owners and lenders taking the hit. Jan 24, 2010
Richard R
ussell: Very Bearish On The Stock Market Going Forward
Richard Russell, author of The Dow Theory Letters, is very bearish on the stock market going forward. This is an excerpt of his latest stock market comments:"The sinking market is taking a lot of late-arrivals along with it; These are the poor souls who bought stocks hoping to recoup some of the losses they suffered during 2008-09. The falling stock market, I believe, will turn consumers even more sceptical and bearish than they have been. Today, by the way, the Dow and the Transports both closed below their 50 day moving average, this for the first time since last November.Despite it all, I continue to believe that since March we have been in a bear market correction, and not a new bull market. For this reason, I take the current rotten market action very seriously. If I’m correct, it this is the beginning or a top-out in a bear market rally, then I can tell you that the “fun’s over,” and the really bad times lie ahead.What I’m now trying to decide is whether this is just a short-term correction or whether we are seeing a serious top-out of the rise from the March lows. A bearish turn of events would be an initial decline, then a weak rally and a second decline violating the lows of the first decline. In other words, a definitive downward pointing zig-zag.The Dow has now wiped out all of its 2010 gains and now shows a loss for the year, but more about the meaning of this tomorrow. Subscribers who wondered why I didn’t want to put the bull in the box may now see my hesitation. Bear market rallies turn on a dime, and in a few sessions you can be under water. I want my subscribers to be in the best shape possible if or when this market “has had it.” A few more weeks like this one, and we could see a real old-fashioned panic.The VIX is 22, which tells us that nobody has been buying puts. Confidence and complacency are the mood of the day. Nobody’s ready for a lousy market ahead."
Richard R
ussell: Very Bearish On The Stock Market Going ForwardRichard Russell, author of The Dow Theory Letters, is very bearish on the stock market going forward. This is an excerpt of his latest stock market comments:"The sinking market is taking a lot of late-arrivals along with it; These are the poor souls who bought stocks hoping to recoup some of the losses they suffered during 2008-09. The falling stock market, I believe, will turn consumers even more sceptical and bearish than they have been. Today, by the way, the Dow and the Transports both closed below their 50 day moving average, this for the first time since last November.Despite it all, I continue to believe that since March we have been in a bear market correction, and not a new bull market. For this reason, I take the current rotten market action very seriously. If I’m correct, it this is the beginning or a top-out in a bear market rally, then I can tell you that the “fun’s over,” and the really bad times lie ahead.What I’m now trying to decide is whether this is just a short-term correction or whether we are seeing a serious top-out of the rise from the March lows. A bearish turn of events would be an initial decline, then a weak rally and a second decline violating the lows of the first decline. In other words, a definitive downward pointing zig-zag.The Dow has now wiped out all of its 2010 gains and now shows a loss for the year, but more about the meaning of this tomorrow. Subscribers who wondered why I didn’t want to put the bull in the box may now see my hesitation. Bear market rallies turn on a dime, and in a few sessions you can be under water. I want my subscribers to be in the best shape possible if or when this market “has had it.” A few more weeks like this one, and we could see a real old-fashioned panic.The VIX is 22, which tells us that nobody has been buying puts. Confidence and complacency are the mood of the day. Nobody’s ready for a lousy market ahead."
February 3, 2010
Unemployment Is Up, Bankrupcies Continue To Increase In The US. So People Are Not Better Off.
"I want to remind
you basically, if you ask me this is all part of a continuing. Yes, the stock market went up. You know, the american stock market is around 10,000 right now, the Dow Jones Average. It can go to 30,000 if they continue to print money. You think you made money because the Dow Jones tripled. But it has tripled in worthless paper. So we are not going to be better off and that is part of what is happening now. The stock market has gone up but the value of the money is deteriorating. Look at what has happened to the price of gold, or silver or some other commodities. They have been very strong because people know that the paper money is becoming less valuable. You may think that if the stock market goes to 20,000 you are better off, but you are not. The stock market is up a lot, around 50%. But unemployment is up, bankrupcies continue to increase in the US. So people are not better off. The stock market is better, stockbrokers are better because they have all the money. And that is not a good system. That is socialism for the rich."in Praag Meeting
February 2, 2010
February 2, 2010
Jim Rogers, a native of Demopolis, Alabama, is an author, financial commentator and successful international investor. He has been frequently featured in Time, The Washington Post, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times, and most publications dealing with the economy or finance
Jan 17, 2010
Warren Buffett's Favorite Economic Indicator Shows Weak Economy
Warren Buffet
t's favorite indicator shows a weak US Economy:Rail traffic continues to show signs of a very tepid economic recovery as carloads and intermodal rail traffic got off to slow starts to the new year. Total carloads were off 12.7% compared to 2008 while intermodal traffic declined 3.6%. The breadth of the weakness continued to narrow, however, as 11 of the 19 commodity groups were up compared to 2008.This weakness in rail data was best displayed by yesterday’s Railtime Indicators Report from the AAR which showed the weakest annual rail data in over 20 years. While the sequential trend continues to improve there is little doubt that the recovery is still very weak.I would also like to add his recent comments about inflation, "the government's efforts to paper over the banking crisis are potentially very inflationary......worse than the 1970s inflation."
Warren Buffett's Favorite Economic Indicator Shows Weak Economy
Warren Buffet
t's favorite indicator shows a weak US Economy:Rail traffic continues to show signs of a very tepid economic recovery as carloads and intermodal rail traffic got off to slow starts to the new year. Total carloads were off 12.7% compared to 2008 while intermodal traffic declined 3.6%. The breadth of the weakness continued to narrow, however, as 11 of the 19 commodity groups were up compared to 2008.This weakness in rail data was best displayed by yesterday’s Railtime Indicators Report from the AAR which showed the weakest annual rail data in over 20 years. While the sequential trend continues to improve there is little doubt that the recovery is still very weak.I would also like to add his recent comments about inflation, "the government's efforts to paper over the banking crisis are potentially very inflationary......worse than the 1970s inflation." 
