snakyjake

Top Foreign Holders of U.S. Treasuries

I didn't know Hong Kong was a separate country from China.

Why Do Equity Markets Disagree with the Data?

We know the government is going to prevent any sort of crash, either through borrowing or printing money.

I think we're seeing the stock market prices rise because there's a lot of global currency out there. Inflation is seen in the markets.

Savings and Treasuries have too low of yields to be attractive (at least to me).

People putting their money in the market in order to hedge against inflation.

Why Higher Deficits Don't Mean Higher Income Tax Rates

We don't need higher taxes today because we are able to fund our spending via debt, not taxes. If this continues, no need for higher taxes. And let's not forget how low those Treasury interest rates are right now...it's cheap money. If/when interest rates go up....higher taxes might appear better than the interest payments.

Another form of "taxes" is inflation. The Treasury can simply print money, and not have to raise taxes. I believe this is how the Vietnam War was financed.

And with WW2, I believe a portion of the financing was with war bonds (a volunteer tax), government price controls, and the government confiscating raw materials from the private sector, plus the US was profiting from the European war and giving us the industrialization boost.

Why Aren't We Undergoing Another Great Depression?

It may be worth mentioning that the world wanted to buy our US dollars and provide us loans....helping to keep interest rates low and keep our debt funded.

Employment Report Preview

Where and when will we know the truth about unemployment?

The Truth About U.S. Housing Numbers

Please explain? I don't understand why a bank would foreclose a home if making the full and on time mortgage payments. If making full on time payments, can a bank legally foreclosure the home?


On Jul 27 07:49 PM Rolandownthehill wrote:

> I for one am appalled! I am getting foreclosed on even thou I am
> employed. Because the bankers are just to greedy. An then I have
> to read this? Unbelievable!
> There are thousands of houses also empty with no buyers. The banks
> are holding on to them until the market changes. But no help for
> millions being foreclosed on!

A Quick Look at the New Housing Number

I've been noticing more sold/pending sales in my area of the Seattle area too. Maybe the prices have finally come down to a range in which people in this area can afford.


On Jul 27 09:35 PM OilFinder wrote:

> An anecdote on this story . . .
>
> Where I live (north Seattle suburbs), there is a large housing development
> near me which, about a month ago, just "took off." It had been sitting
> idle for about a year, with weeds growing on the unbuilt lots and
> the partially-built sides of wood on some houses showing signs of
> weathering. Now, all of a sudden there is a flurry of activity, with
> houses going up like you wouldn't believe, and at least half of them
> with "sold" signs on them.
>
> Yesterday I went there and asked the salesman what had happened.
> He told me the previous builder had the entire development foreclosed
> to the bank, who then re-sold it to another developer at a bargain
> price. This enabled the new developer to offer the houses at an average
> of $100K less. No wonder people are buying.
>
> There are numerous other developments around me. Some seem to be
> showing recent signs of activity, others are still languishing. My
> observation is that the higher-end ones (judging by the lot sizes
> and locations) are the ones still languishing, while the mid-priced
> ones are the ones showing new signs of life. The specific development
> I spoke of above is one of those mid-priced ones.
>
> If this anecdotal example is typical, it might explain why housing
> starts have started going up again while prices are still going down.
> And, perhaps, the increase in starts is largely concentrated at the
> mid-range. Perhaps there is a slightly-less-than 90 day supply of
> inventory, but maybe it's less than 60 or 70 days for mid-range inventory,
> but 120 days (or something) for high-end inventory.
>
> Just some thoughts.

The Economy Can't Be That Bad if Thousands Can Pay $100 for a Ballgame

Just because you're unemployed doesn't mean you are not spending money. I know a few unemployed people who are buying fancy new cars, motorcycles, boats, clothes, dinners, movies, landscaping, home improvements, etc.

Basically they are spending their severance, savings, and unemployment checks. They have lots of spare time to start new projects (landscaping/home improvements/hobbies). And in my state, unemployment pays a lot more than most available jobs.

Monetizing the Debt: Explanation For Non-Economists, Bankers and Other Laymen

Thanks for the article. Very simple to follow and easy to understand. What I don't like today in my personal finances is that I'm financing inflated prices via credit. I as a consumer am now saying "No" to financed inflated prices. Going back to cash is good financial discipline.

Monetizing the Debt: Explanation For Non-Economists, Bankers and Other Laymen

Most people are super ignorant, not just Americans. I don't see the Chinese, Japanese, Europe, and individual foreign investors being any less ignorant by continuing to loan and finance US debt and consumerism.


On May 11 03:04 PM EUARTE wrote:

> The trouble is most Americans are super ignorant in both finance
> and economics. They prove it by the slime they vote for in Congress.
> They have not caught on to Obama yet. I suspect Obama has not caught
> on to Obama yet.

Follow-Up on Unemployment

At the national level, are the jobs really gone? Or are the jobs migrating? Instead of jobs in manufacturing working on an assembly line, the new assembly line is a call center.


On Feb 10 08:39 AM TeresaE wrote:

> Wow. Someone paying attention, thank you.
>
> One number you did not consider, the self-employed and former business
> owners are not counted in those numbers at all.
>
> And the government mandated eradication of small business runs unabated.
>
>
> How can people drive past scores of empty industrial buildings and
> not realize those are jobs, and CUSTOMERS, gone forever.

Bailout Bill Passes; What Happens Now?

Perhaps to pay for all this debt and keep the dollar from falling, Americans will have to start producing something that other countries want. Or worse, sell more of their assets to foreigners.

Chicken and Egg: A Currency Called the Oil/Dollar?

Don't have to go to Russia or China....the U.S. people want something called "windfall profit tax". Which is just another way of taking excessive profits away from corporations. Same with increases in capital gain taxes, and other taxes.

Chicken and Egg: A Currency Called the Oil/Dollar?

If you wanted to lower prices, it isn't just about supply vs. demand. You can easily lower prices by eliminating profit. Sure, profits are good so it encourages future investment....but what if they won't or can't invest in the future?

Are We Facing a Global Slowdown?

Worst credit bubble? Where? I don't see it anywhere. If I didn't listen to the news, I wouldn't even know what you're talking about. I'm sure there's some losers in the market....but it seems like that's the minority.