Bad Obama Economy growing Worse!!!

Good Point Pidgey- These credit card delinquencies are more proof that Obama's Porkulous spending isn't working. I never hear the Obama media mention this growing problem.

It doesn't fit their template I guess.
 
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Well, I still say you can't blame it on just Obama, or Bush, or Clinton, or Reagan... you kinda' need to include all of us if you're going to throw blame around. In any case, the moment has arrived when the bond markets are blowing up. US Government Agency Bonds and US Corp Bonds are being rejected now by foreign investors to a very servere degree. This is a graph compiled from current and historical TIC data (from the US Dept. of the Treasury):

2147681200073664377S600x600Q85.jpg


I suppose the physical manifestation of this will be serial corporate bankruptcies and severe government (local and federal) funding issues. If the DX breaks 72 then it could slide to as low as 40, which would push the price of oil and other imports to the US up very high, probably catastrophically. Either that or "they" will be forced to allow interest rates to rise to the point where foreign investors will be willing to accept the risk. They've been holding them down with essentially brute force but that simply can't go on if a corporate body MUST have funding from "outside" due to the local wells being dry. Which is the case.
 
Seriously, folks... WHY on Earth would you continue to believe this man:

http://www.youtube.com/watch?v=9QpD64GUoXw

???

I mean... shouldn't someone with this level of connected-ness have SOME kind of a clue what was coming down the pike? And if you take that as a given... then for what possible reason would he have had to spout all that BS?
 
Pidgey said:
Please allow me to backstop that argument with a "This just in... "

http://www.istockanalyst.com/article/viewarticle/articleid/3429471

Even Warren Buffet and PIMCO are chiming in to say that the bond market simply won't take it. Didja' know that the Treasury was planning on the sale of another 200+ billion of assorted treasuries next week?

We are SO toast!
Click to expand...

As long as those treasuries continue to sell I do not think we have hit the point of no return.
 
Because the Fed has not only been buying bonds from the Treasury openly, but has also been secretly buying some through the Primary Dealers*, how in the world are you going to be able to tell?

That's a rhetorical question.

But that's why I posted the image showing the massive slowdown in the foreign purchase of US Gov Agency and US Corp Bond debt. It IS dropping precipitously and the data is from the US Treasury. It's probably ALWAYS possible for us to keep selling treasuries if we're willing to let the interest rates slide up to match what they (foreign investors) will perceive as increasing risk. However, if rates climb, so will interest rates all across the board.

Now ask yourself this question: "What then?"


*https://www.houseofpolitics.com/forum/showpost.php?p=104575&postcount=179
 
BigRob said:
Your story is 12 days old. Since that time as well the number of first time filers for unemployment raised unexpectedly. There are positive signs around, but we are not entirely out of the woods.
Click to expand...

True we aren't entirely out of the woods. I've been saying by the last quarter of 2010.

But here's some good news from today.:) Just to mix things up and look from different perspectives this was in today's FINANCIAL POST in Canada.

Signs of economic life lift stocks
David Pett, Financial Post
Published: Friday, August 21, 2009

Further signs that the Canadian and U. S economies are improving lifted North American stocks in an otherwise quiet day of trading on both sides of the border. The S&P/TSX composite index climbed 13.68 points or 0.1% to 10,700.51 and the TSX venture exchange was up 7.44 points or 0.6% to 1184.39. In the United States, the Dow Jones industrial average was up 70.89 points or 0.8% to 9350.05. The S&P 500 climbed 10.91 points or 1.1% to 1007.37 and the Nasdaq composite index closed at 1989.22, up 19.98 points or 1%. "It was a pretty dull day," said David Baskin, president of Baskin Financial Services in Toronto. "Especially when we've grown so used to some really volatile sessions over the past year. Maybe this is a sign that [investors] aren't as panicked about every little piece of news out there." Canada's wholesale trade values rose in June for the first time in nine months, Statistics Canada said yesterday. Sales values roses 0.6% to $40.4-billion, beating expectations of a 0.2% month-over-month increase. The index of U. S. leading economic indicators rose in July for a fourth consecutive month. The U. S. Conference Board's gauge of the economic outlook for the next three to six months rose 0.6%. It was, however, less than the 0.7% gain expected by economists. Materials were up 0.40%, as gold prices retreated US$3 to US$940.30 an ounce and energy stocks weighed down trading, dropping 0.15%. While oil prices increased US12¢ to US$72.54 a barrel, natural gas prices dipped below US$3 for the first time in seven years.

And here's some good local research...

Stocks lifted by signs of economic improvement, gains in global markets
Sara Lepro August 20th, 2009

Stocks higher on improving manufacturing data

NEW YORK — The stock market trudged higher Thursday, with investors placing small bets on stocks amid the latest mixed signals on the economy.

Major stock indicators rose moderately in very light trading, including the Dow Jones industrials, which gained about 65 points. The advance came as investors weighed an uptick in mid-Atlantic factory activity against a disappointing weekly jobs report, and showed that while they’re trying to be optimistic, they also don’t have the conviction to make any big moves right now.

In another sign of the market’s caution, investors mostly held on to their positions in government bonds, considered safe-haven investments. A rebound in overseas markets, which have been volatile, put some support under stocks, with the biggest gains coming from financial, industrial and technology companies.

Trading this week has been back-and-forth, reflecting investors’ uncertainty about what the economy’s recovery will look like as they absorb both positive and negative data.

With earnings season winding down, analysts say there are few catalysts on the horizon that could spark a big move in stocks in either direction. At the same time, volume is expected to remain light as traders take summer vacations. Without a clear signal and with fewer participants, trading will likely vary day to day for some time depending on the latest economic news.

“The market is going to pop up or selloff depending on how the numbers go,” said Ronald Rough, director of portfolio management at Financial Services Advisory in Rockville, Md. “When things are starting to turn, things are very uneven.”

On Thursday, investors were encouraged by news that factory activity in the mid-Atlantic region jumped back into positive territory in August, reaching its highest level since November 2007, before the recession began. The report from the Philadelphia Federal Reserve Bank echoed findings earlier this week in a similar survey for the New York region.

Also, a private research group said its forecast of economic activity rose for a fourth straight month in July, but at slower pace than expected.

In late afternoon trading, the Dow Jones industrials rose 64.46, or 0.7 percent, to 9,343.62. The Standard & Poor’s 500 index rose 10.30, or 1.0 percent, to 1,006.76, while the Nasdaq composite index gained 18.13, or 0.9 percent, to 1,987.37.

More than two stocks rose for every one that fell on the New York Stock Exchange, where volume came to a light 659.6 million shares.

Overseas, Chinese stocks recovered from a big sell-off with their biggest rally since March and all the major European indexes rose about 1.5 percent.

Treasury prices were little changed following several days of gains as investors refrained from taking too much money out of safe-haven investments. The yield on the benchmark 10-year Treasury note, which moves opposite its price, dipped to 3.44 percent from 3.46 percent late Wednesday.

The Russell 2000 index of smaller companies rose 3.84, or 0.7 percent, to 565.49.

Analysts say it’s healthy for the market to drift for a bit following such a huge run-up in which both the Dow and the S&P 500 index have risen more than 40 percent since early March.

Matthew Lloyd, chief investment strategist at Advisors Asset Management, said a sideways movement helps the market digest its gains and creates a good entry point for more investors to come back into the market after the devastating losses of last fall and early this year.

“Ultimately, this is going to be a good building block to build from,” he said.

The gains in financial stocks on Thursday were an encouraging sign that investors do see reason to believe in an eventual economic recovery. Banks stocks took some of the biggest hits throughout the recession as investors worried about the stability of the financial system, so their bounce back has been sharp. Shares of Citigroup Inc., among the most troubled banks, jumped 31 cents, or 7.5 percent, to $4.44.

Meanwhile, Sears Holdings Corp. shares plunged nearly 12 percent after the retailer posted a bigger second-quarter loss than expected as its sales fell and it closed stores. Shares lost $8.70 to $65.06.

The dollar was mixed against other major currencies, while gold prices fell.

Oil prices rose 28 cents to $72.70 a barrel on the New York Mercantile Exchange.
 
Anybody really wonder what, exactly, is spurring the markets? As in... where's the money actually coming from to help these poor, previously insolvent banks (too big to fail) work the program buying to death in order to pump up the prices? Well, in part, YOU are! How? Have you happened to notice that a couple of years ago, you could get ~5% on a CD at the bank and a credit card interest rate near 10, on average? Sure, it ran the gamut but that was common. Now... there's a spread of about 5% that the banking institutions would collect.

What's it now? More commonly you're down around a single percent on CD's while the credit cards are closer on average to 19%, so a spread of about 18%, for a realized gain for banking institutions of about 13% on total consumer credit outstanding of about $2.5 trillion?

Well... there's a bunch of money being covertly channeled to shore up all those toxic assets in banks. It's also money that can't go towards the real economy.
 
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Dang... I guess this is going to p*ss some people off--turns out that $4,500 Cash-for-Clunkers is... TAXABLE!:eek:

http://www.keloland.com/NewsDetail6162.cfm?Id=0,89084

The story that I got was that it's "taxable income" in states with state income tax; the folks buying were so giddy for free money that the dealerships charged them full sticker price; AND, the dealerships charged them sales tax on the full amount, including the $4,500 worth...

That might mean that they only get taxed twice on it...

Details, details, details... ever the bane of the common man!:(
 

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