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U.S. and global economies slipping in unison
All this means that economic troubles in the United States could intensify into the presidential election season and beyond. It could also make it harder for financial companies like Lehman Brothers, which has been seeking fresh investment in South Korea, and the government-backed mortgage giants Fannie Mae and Freddie Mac to attract much-needed capital from abroad.
To Infinity and Beyond!
As the United States and many other large economies slip in unison, the reality of integrated markets is being underscored: Just as globalization spreads prosperity - linking cotton farmers in Texas to textile mills in China - the same forces spread hurt when times go bad.
Reality? Prosperity? The Ocean of Reality?
"The slowdown has reached such a wide range of countries that they're now feeding on one another," Ruskin said.
Moogerfooger Feedback Loop 1
Philly Fed: State Coincident Indexes Increased in 44 States in March
(3-Month Basis)
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From the Philly Fed:
The Federal Reserve Bank of Philadelphia has released the coincident
indexes for the 50 states for March 2024. Over the past three mo...
2 hours ago
5 comments:
does this mean the "world wide saving glut" is lost in space or maybe it's in some kind of orbit and will return? I sure miss it!!
anonymous,
does this mean the "world wide saving glut" is lost in space or maybe it's in some kind of orbit and will return? I sure miss it!!
Top government officials are no doubt working on solutions to the problems. That being said, I doubt their first plan will work, nor am I hopeful about plans two through eight.
1959
Plan 9 from Outer Space
http://www.imdb.com/title/tt0052077
With your ancient, juvenile minds you have developed explosives too fast for your minds to conceive what you are doing. You are on the verge of destroying the entire universe.
Compare and contrast...
2003
Buffett warns on investment 'time bomb'
http://news.bbc.co.uk/2/hi/business/2817995.stm
But Mr Buffett argues that such highly complex financial instruments are time bombs and "financial weapons of mass destruction" that could harm not only their buyers and sellers, but the whole economic system.
Speaking of derivatives...
AIG May See More Losses in Derivatives
http://online.barrons.com/article/SB121968746414669821.html?mod=googlenews_barrons
FOLLOWING THE RECENT deterioration of certain fixed-income indices, including Alt-A, commercial mortgage-backed securities, subprime, and now non-agency prime residential mortgage-backed securities...
Here's a visual aid.
http://www.youtube.com/watch?v=5_tXcRYOYZ0
Stag,
http://www.bloomberg.com/apps/news?pid=20602007&sid=anzHTPx_WTPc&refer=govt_bonds
It's going to take a good while for the negative feedback loops to play out. I seriously doubt we have consistent valuations on derivatives throughout the system. Much of those record financial profits were attributable to derivatives in my mind. A delusion of prosperity.
It seems likely that part of Bernanke's plan (if indeed he has one) is to allow losses to be recognized over an extended period of time. Given time, inflation will mitigate some of the balance sheet losses.
Voila!
The facts have been changed to protect the names of the guilty. GRRRR!
MAB,
It seems likely that part of Bernanke's plan (if indeed he has one) is to allow losses to be recognized over an extended period of time.
Infinity Squared
http://www.youtube.com/watch?v=nwNEXWL2HUg
What the... Oh, come on. You've got to be kidding me. Did someone divide by zero again? I swear this is the third time this week.
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