California Budget shortfall increasing another $8 billon dollar problem

http://globaleconomicanalysis.blogspot.com/2009/03/california-billions-in-hole-again.html

AIG and more Bonus nonsense

http://www.businessinsider.com/henry-blodget-latest-aig-outrage-100s-millions-in-bonuses-to-group-that-blew-up-firm-2009-3

Mish and the unemployment numbers

http://globaleconomicanalysis.blogspot.com/2009/03/census-hiring-to-create-14-million-jobs.html

Be sure to read the comments later in the article about U6 and how it was different in the 30's.

GE loses AAA

http://ftalphaville.ft.com/blog/2009/03/13/53560/ge-hit-by-credit-rating-cut/

Market shrugs. Only four companies have AAA left. This will impact GE ability to raise captial. If you are thinkng about buying I would go caoutious.

China Worried about US Treasury holdings

http://www.businessinsider.com/china-a-little-bit-worried-about-us-treasury-holdings-2009-3

China can stop the music. Lets hope for the best.

Stewart V Cramer The full Fight

http://www.businessinsider.com/henry-blodget-stewart-vs-cramer-the-complete-ass-kicking-2009-3

Imports and Exports continue to drop

http://www.calculatedriskblog.com/2009/03/us-trade-exports-and-imports-decline.html

More travel, More Lite Posting.

Sorry, going to checkout Mexico City

Freddie Mac to Draw $30.8 Billion in Treasury Aid After Loss

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDNGVfeY8lgQ&refer=home

Money Hole Shoveler are a growing industry.

Obama stumbling out of the gates

http://www.salon.com/opinion/paglia/2009/03/11/mercury/

Who is to blame? Most of his staff?? I dont think so. I think he runs a much more command orientined shop. In the end if you are in charge it is your fault.

Where is everyone? Obama team 'unreachable'

http://www.independent.co.uk/news/uk/politics/cabinet-chief-obama-team-unreachable-1642088.html

Meredith Whitney: Citi Will Be Forced To Keep Selling Family Jewels

http://dealbreaker.com/2009/03/meredith-whitney-citi-will-be.php

Anyone who bought the load of crap about profits being great needs to take a step back, yes they are making money on the banking side. That is not the problem. It is the all the other crap they got into that is losing big and wiping out all the profits.

U.S. foreclosures hit record level in February

http://www.marketwatch.com/news/story/US-foreclosures-hit-record-level/story.aspx?guid={A4C43DFA-9A0E-41CF-AECD-A8FEC114E43E}

As unemployment increase, we are seeing the real pain begin. With foreclosures now at record levels even with a stop in some of the worse areas. Housing is still in free fall. Till that stops there is no good news for the banks. Adding the problems Credit cards and ADC loans will speed things up.

Recession VS Crash

http://gregor.us/crisis/rock-scissors-paper-recession-vs-collapse/

Tim Geithner's Black Hole

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/09/AR2009030902232.html

You can take this whole mess many ways. One is that the Obama team lacks a backbone and is just coasting along hoping for the best.
Two. The Bankers have them over barrel and are sucking us dry. When that is done it will all collapse and they will leave the country in ruin.
Three, they are idiots and believe all the crap they are talking. In which case it will worse then we all think.
Four. They know what they are doing and we all need to shut up.

I don't know for sure but two sounds about right. At this point having watched AIG and read the memo they wrote. It looks like we are being taking for everything we are worth. When it is done nothing will be left. I find this very scary and wonder why is the exit plan for Obama and Team? What is the exit plan for most of the world? A world wide massive crash and then recovery? I just can not see how this ends in anyway good now.

Moody's Leper List of 283 companies on the edge.

http://zerohedge.blogspot.com/2009/03/moodys-releases-leper-list.html

If in the next year all these companies did fail, what kind of unemployment would be see? My rough look - 15% or more in U3.


http://www.bloomberg.com/apps/news?pid=20601109&sid=aNlx.TpHF5W4&refer=home

The word Depression is looking more likely each day. What scares me is the amount of large events just sitting there on the edge to fall. In September it was one or two things. Now it is closer to 15 major things.

Ukraine currency plunges

http://zerohedge.blogspot.com/2009/03/ukrainian-currency-plunges-despite.html

Now in Full Crises. This is huge problem and it is getting worse each day.

Ukraine, which was recently downgraded to Europe's lowest CCC+ rating, which itself is a lagging indicator has seen industrial production plummet 34.1% in January while its inflation rate of 20.9% the highest in Europe. ZH still believes the biggest threat to the global economy is the domino default effect which will likely start in the Ukraine or one of its neighboring countries

This would cause all manner of very bad things to happen.

ADC the new Bank problem

http://in.reuters.com/article/businessNews/idINIndia-38431120090310?sp=true

Called Acquisition, Construction and Development (ADC) loans, they total 8.4 percent of all bank loans, just below a 30 year peak, and are used by developers to buy land, put in infrastructure and construct housing or commercial and office space.

Whoops.

Until they are cleared there can't be a stabilization in home prices," said Ivy Zelman, a longtime housing analyst at Zelman & Associates, who thinks the pressure will cause "hundreds of banks" to be closed and liquidated.

"The Federal Deposit Insurance Corporation doesn't have the funds to deal with all this. They don't have the scalability to deal with all these problem banks. They can't examine the smaller banks fast enough," she said.

I am sure the $500 Billion more Blair ask for will help.

Zelman estimates that U.S. banks risk having to charge off an additional $84 billion of ADC loans between now and 2013, equal to a hit of nine percent of Tier 1 capital.

Most banks with just that kind of loss would be in deep trouble. With the current losses we are moving towards a complete wipe of the bankers.

That will drive land and real estate prices down further and suck others into what amounts to a negative self-reinforcing cycle.

Till we figure out a way to break the cycle we are still going to keep going down. We need real solutions not the raping of tax payers and half baked ideas.

Worst collapse in UK manufacturing in four decades

http://www.telegraph.co.uk/finance/economics/4966992/Worst-collapse-in-UK-manufacturing-in-four-decades.html

The UK seems to still be ahead of the US in term of impact from the downturn.

In figures labelled by analysts as “shocking” and “a horror show”, Britain’s industrial production dived at record speed, underlining how hard the global downturn has hit producers and exporters. The statistics are doubly surprising because many economists had expected the weakness of the pound over the past year to have boosted their fortunes.

Big problems and little solutions.

Citi and Federal Government in New Non-Rescue Rescue Talks

http://www.nakedcapitalism.com/2009/03/citi-and-federal-government-in-new-non.html

I mean its just smoke, nothing is on fire. We are making lots of money says the CEO.

Dont worry. All is fine.

Repeat as needed.

U.S. to Toughen Its Stance On Trade

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/09/AR2009030903157.html

Yeah lets cut off trade to the those rough countries. Oh wait you mean they might cut off buy from us? In the end we should be flooding the world markets with goods.
Smoot-Harley did not happen in one day. It came about in a series of problems and was perfectly reasonable at the time. It was only latter it was seen for the disater it was.

IMF warns of Great Recession, Africa at risk

http://www.reuters.com/article/newsOne/idUSTRE5291O520090310

Not to be out done by the world bank, the IMF see big problems ahead.

The Doom Bunker!

The Colbert ReportMon - Thurs 11:30pm / 10:30c

Doom Bunker - Jack Jacobs and Stephen Moore

Colbert Report Full Episodes
Political Humor

Rap Battle
Joke of the Day

I am still laughing

Every American should be made to read this book.

I am shocked still from reading it.

U6 goes over 14% now above the 80's

http://globaleconomicanalysis.blogspot.com/2009/03/jobs-contract-14th-straight-month.html

More worrying is that March could top 1 million jobs lost in the month.

North Korea puts military on standby for 'war'

http://www.msnbc.msn.com/id/29588251/from/ET/

Wonder why Oil is up. Look no further.

Tim Geithner has no financial skills

http://jessescrossroadscafe.blogspot.com/2009/03/chris-whelan-tim-geithner-is-disaster.html

I thought he was the wrong choice from the start. Now it looks like a disater.

http://ftalphaville.ft.com/blog/2009/03/09/53360/a-mexican-us-fallout-wave/

Once I am keeping a sharp eye on mexico. With the massive Drug war and the failing peso would could see big problems with our southern neighbour.

'Run on UK' sees foreign investors pull $1 trillion out of the City

http://www.independent.co.uk/news/business/news/run-on-uk-sees-foreign-investors-pull-1-trillion-out-of-the-city-1639413.html


The rich are sacred that UK will collapse like iceland and are not taking chances.
Get the popcorn ready, we may some big fireworks from the UK soon.

HR 1014 to make DC a tax free zone

http://www.opencongress.org/bill/111-h1014/text

(12) In keeping with the early history and democratic traditions of the United States, the principles established in the Constitution, and in conformance with the other territories of the United States which have delegates but no Representative, the residents of the District of Columbia should be exempt from paying United States Federal income taxes.

Are you kidding. Lets make DC a tax free zone?

Google's Revenue Weakens Markedly Over Past Month

http://www.businessinsider.com/henry-blodget-googles-revenue-has-weakened-markedly-over-past-month-2009-3

A source at Google says the company's revenue has decelerated rapidly over the same period.

When it hits 200 dont say I did not warn you almost 5 months ago.

Krugman: Obama Already Out Of Touch

http://www.businessinsider.com/henry-blodget-krugman-obama-already-out-of-touch-with-economy-2009-3

Here’s the picture that scares me: It’s September 2009, the unemployment rate has passed 9 percent, and despite the early round of stimulus spending it’s still headed up. Mr. Obama finally concedes that a bigger stimulus is needed.

But he can’t get his new plan through Congress because approval for his economic policies has plummeted, partly because his policies are seen to have failed, partly because job-creation policies are conflated in the public mind with deeply unpopular bank bailouts.

In the end Obama will own this. As much as Bush 41, Bush 43, Clinton and Regean Administrating lead us here. He promised to fix it. He made most of america to beilve he could help. When hopes dies we are all screwed.

World Bank says some countries now dead man walking

http://247wallst.com/2009/03/09/a-depression-assessment-from-the-world-bank-the-truth-about-global-economic-disparity/#more-26181

it is almost certain that some of the weakest nations in the world will be destroyed by the current economic calamity. It is astonishing that no one in the developed countries has had the courage to speak this truth. That would at least give those countries, likely not to survive, the knowledge that no help is coming. At least, then, they could desperately try find an alternative to outside aid.

Once again the toll from this recession is being underestimated by almost everyone. How many will fail?

Who benefited from AIG? Goldman.

http://www.nakedcapitalism.com/2009/03/quelle-surprise-who-gained-from-aig.html

Back!

Hello loyal readers. I am back from the beaches of Jamaica.