Why choose between the two painful eras when we can have both simultaneously? The following two articles were in the top ten most read on MarketWatch today (the first was #1 and the second was #6).
CORRECT: U.S. stocks sink; GM falls nearly 11%
NEW YORK (MarketWatch) -- U.S. stocks fell sharply Thursday with the blue-chip index enduring its worst June so far since 1930, and plunging to its lowest finish since Sept. 11, 2006, after getting slammed hard as crude soared to new highs and Goldman Sachs disparaged U.S. brokers and advised selling General Motors Corp.
Toyota weighing first broad price hike since 1974
The automaker is considering a plan that would amount to the first across-the-board price hike since 1974, at what was then the height of the previous oil crisis, the Nikkei newspaper reported, citing an unidentified senior Toyota official.
One foot goes in the liquid nitrogen. The other foot goes in the molten lava. We're still doing well on average though.
Oh well, at least the country isn't a dust bowl.
Floods will cause ripple, not ruin, across US economy
Any idea that this year's corn crop would yield the bounty needed to ease already short supplies is gone. Corn prices have increased by more than 80 percent in the past year on demand overseas and to fuel ethanol plants, contributing to global food-price inflation at a time of rapid economic growth in China, India and other developing nations.
We're fine as long as nobody does the math and/or the math is only done by Wall Street analysts on our behalf.
Farmers whose fields are under water are starting to do their own math.
Oh oh.
Stag,
ReplyDeleteI think borrowers and more importantly lenders are starting to do their own math too. This is a real problem for the fed. Are lenders (savers) going to stretch for yield this time around? I doubt it. At a minimum lenders/savers will be far more cautious.
In general, I think savers around the world (myself included) will be far less willing to lend money. Low rates will discourage lending even more.
It's the 1930s, the 1970s & the 1990s from Japan all mixed together. Asset deflation (especially leveraged assets), CPI inflation.
What kind of music do you have here ma'am? We got both kinds, Counrty and Western. (paraphrased from the movie The Blues Brothers)
Pain City.
MAB,
ReplyDeletePain City.
Sin City (2005).
These are the old days, the bad days, the all-or-nothing days. They're back! There's no choice left. - Marv
Most people think Marv is crazy. He just had the rotten luck of being born in the wrong century. - Dwight
Hell of a way to start my retirement. - John Hartigan