Frugal Joe

China in a Bubble?

Bubble for sure. Apartments there are way too high compared to salary. People work two or three jobs to pay their mortgages at this point and the very lax loan policy this year only makes matters worse.

Very similar to usa problems and bogus numbers I think except china has less deficit.

good article overall.

How Bloomberg Fabricates U.S. Housing Numbers

Very detailed article. Sadly, it is true. The middle class sinks deeper every day while the gov spins new tales and fabricates numbers.

"strong dollar"

"recession is over"

and it goes on and on while GS and other investment banks rake in billions ......sad & diabolical.

How Bloomberg Fabricates U.S. Housing Numbers

user 353723...could not have said it better. When I read this article I thought of the scene where the fellow is told to destroy the previously reported numbers and substitute newer and even more unrealistic numbers.......1984 must be the most rented movie out there right now.


On Nov 01 12:08 PM User 353732 wrote:

> You will recall that in Orwell's "1984" the absolute tyranny continually
> rewrote history so that the past would conform to the ideology and
> barbarities of the present. This is a defining trope of all corrupt,
> collectivist and depraved Regimes.
> The facts are what the Regime says they are; the truth is whatever
> glorifies the Regime; success is what most benefits the Regime.
>
>
> Power, wealth, fame :all up for the WashDc-Wall St- MSM reigning
> Troika. This is called a great recovery made possible by the ever
> vigilant and tireless Regime laboring ceaselessly for The People.
>
>
> Incomes, net worth, employment: all down for the Middle Class , which
> is as it should be and are the very substance of a recovery, since
> the middle class is made up of the very social deviants and enemies
> of The People the Regime so tirelessly warns us about.
>
> There is a Recovery. The Regime has the statistics to prove it and
> every day ,in its indefatigable search for facts and in its unparalleled
> love for truth, it discover more, better and bigger statistics.<br/>...
> the statistics are real. Everything else is false: unpaid bills,
> foreclosures, small business bankruptcies, credit curtailments and
> denials...All fabrications of the remnant that clings to its primitive
> superstitionsof free markets, free speech, free elections and that
> biggest superstition of all: the Constitution.

High Exposure to Equities? Be Careful Out There

Bill Gross said exactly what this author says here. No fundamentals and there will be a correction.

The real question is, "How big a correction" not if a correction.

As for China, pretty much the same despite their bogus numbers. Most of their metal factories are idle and all that copper, aluminum and steel they bought is piled up on the dock ir in warehouses.

Both there market rose due to "hot money" i.e., money from the stimulus directly into the markets with out improving basic fundamental problems.

Check out Steiglitz's Bloomberg article today, Bill Gross interview last week and John Galbraith's interview with Bill Moyers. They all say the same thing..nothing has changes and it anything, it's worse since we increased the deficit billions of dollars.

GL!

Weak Dollar Will Jeopardize the U.S. Economic Recovery

Looks like Ben and Timmy want a weaker dollar to pay back the Trillions in debt with cheaper dollars.

I don't see the dollar EVER regaining its strength.

Niall Ferguson: Dollar Is Doomed, U.S. Empire Is Finished

the dollars serious collapse is not "if" but when.

I suspect they (Ben, Timmy, and Ob*ma) will let it die slowly so as to avoid a panic. Just check out the dollar index chart...it's been falling steadily.

One serious result will be very high prices on all goods especially imported goods...cars, and just about everything in Walmart.

Mid Week Gold, Silver, Oil and Natural Gas Trading Report

PMs have value as opposed to the fictitious earnings reports we have been seeing. When banks loaded with Billion sin bad loans are soaring, there is something wrong there. As one economist wrote last week...."it's a recovery built on quicksand."

Market Correction May Be Delayed, Not Skipped

Funds usually sell end of year to take profits...add to that this rally is basically "hot money" directly from the government stimulus packages and a "jobless, profitless" recovery seems more and more distant with a correction being delayed as the author says imho.

Retail Investors Should Get Out of U.S. Stocks - Now

When the Chinese premier Wen Jiabao and the Chief of Bank of China warned their people against,"Blind Optimism" my heart skipped a beat remembering the Massive Internet Bubble which destroyed millions of small investors as well as large corporations......

This article makes more sense then the Spin and Rhetoric we hear every day from politicians and Wall Street.

GL!

The Mother of All Bubbles

Good breakdown of the financial difficulty we are facing. The problem is that if the Fed restricts (or pulls back) on dumping money into the system we will have even more severe unemployment as you describe.

They have no choice but to keep the system lubricated. Sadly, most of the first (Bush-Paulson) bailout and the second (Geitner-Obama) bailout money went to Wall Street executives as Bonuses and to banks as reserves.

If they pup in another Trillion, which I think they must, we will begin to see serious inflation next year...2010 Q2 or Q3.

China's Stock Market Bubble Inflating

Few of any of their companies made any profits first quarter of 2009 and remainder of year looks bad. For example, ACH had massive losses yet rose 300%.....Bubble is an understatement.

As this bailout money fades, the market will correct to realistic levels and come back down.

BRIC to BIC to BICI?

I can't see Indonesia progressing very far. The government is too disorganized and after slaughtering thousands of their Chinese business class and passing laws forbidding non-Indonesians from holding any substantial gov post, not much in the way of DFI there except continued mediocre performance imho. Their only hope is for companies like FCX to explore their resources. It will be interesting to see what happens to their economy though.

Why Congress Is Asking Bernanke Bogus Questions

Good article.....thanks.

Glad to see an honest detailed account of the mess we are in.

Gold Doesn’t Care If It’s IN-flation or DE-flation

Since Goldman Sachs, in cooperation with several other usa banks are controlling COMEX, it will take more long positions to overcome their incredible volley of short holdings. This article from Rolling Stone by Taibbi says it all:

www.scribd.com/doc/167...

Predicting Gold Ore's Price

If Goldman Sachs is distorting the price of gold through COMEX paper shorting, how can the price of gold ever get above $1,000?

Here is the article I am referring to:

www.ritholtz.com/blog/.../