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Skip to about the eight minute mark to hear Janet Tavakoli, author of Dear Mr. Buffet and head of Tavakoli Structured Finance, talk about credit derivatives, also known as “financial weapons of mass destruction” or the more contemporary “product of financial meth labs”.
This story at the Huffington Post just keeps popping up everywhere – something about a gold price surge based on CDS holders demanding payment in gold?
We live in interesting times, times that are no doubt going to get much more interesting in the years ahead and, unfortunately, probably more violent.
The recent demonstrations on California college campuses following the Tea Party protests of last summer bring up the intriguing possibility that we could actually see protesters against government spending and for government spending face off against each other in the streets.
Just the fact that people are protesting at all is probably a big step in the right direction as we’ve become a much too docile population over the last 20 years here in the U.S., but, multiple bursting asset bubbles and the realization by millions of parents all across the land that, for the first time in generations, the quality of life experienced by their children may pale in comparison to their own – all of this goes a long way in changing that.
The younger set seems to be pretty angry too.
Now, the little girl in the photo above probably doesn’t understand the meaning of the sign she’s holding but, in another fifteen years she likely will.
It’s hard to say what motivates people to finally take action, but it looks like that’s what they’re doing now and that’s probably a good thing.
It’s not clear what’s moving the gold price today, in fact, it’s been a funny week in that the financial media is reporting better prospects for the Greek debt crisis have led to a stronger euro, a weaker dollar, and falling gold prices. That’s not the way its supposed to work…
But, prices sure are moving – first up and now down – and it comes at a time of the day when many big moves have occurred, that is, shortly after markets open in New York.
As noted here a week or two ago, the moves in New York trading are not always in the downward direction, but the three-day price charts from Kitco sure do show a lot of crossings right there in the middle.
A delayed reaction to the news from China the other day perhaps?
CNBC has two stories out this morning that should scare the bejeebers out of investors, but, the ongoing rally seems indefatigable as of late. Dr. Doom notes in this report that the odds of a double-dip recession were 20 percent before the recent spate of negative economic data.
Poor economic data in the US coupled with Europe’s debt crisis are contributing to an increase of the risk of the US economy going through a double-dip recession, Nouriel Roubini, who predicted the 2007 financial crisis, wrote in a research paper.
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The Roubini Global Economics benchmark scenario puts the risk of a double dip at 20 percent, while a slow, protracted, U-shaped recovery is given the highest probability of 60 percent.
But since the end of February new macroeconomic data from the US have come out and “they have been almost uniformly poor, if not outright awful,” Roubini wrote.
Consumer confidence has “tanked”, new home sales are “collapsing,” existing home sales are also falling sharply, as is construction activity, while initial jobless claims remain “stubbornly high” above the 400,000 mark, he said.
Roubini was unimpressed by the 5.9 percent growth rate for the economy in the fourth quarter as it was largely an inventory rebuilding surge and it came at a time when the maximum impact of the government stimulus was being felt.
Columbia University economist David Buckner talks to Eric Bolling about the stock market, the housing market, Wall Street bonuses, and politicians in Washington, ultimately coming back to what is foremost on the minds of most Americans – jobs.
Buckner seems to breeze through this interview while easily maintaining consciousness, unlike a previous appearance on the network – I wonder how long it will take for this HuffPost item David Buckner Faints, Passes Out on Glenn Beck Show to work it’s way down the first page of the Google search results for David Buckner…
TOP STORIES
China Property Prices Jump, Bubble Risk Rises – Bloomberg
A Consumer Bill Gives Exemption on Payday Loans – NY Times
Fed to linger in agency MBS market after exit – Reuters
After a winning year, fund investors still wary of stocks – MarketWatch
Obama Defies Pessimists as Rising Economy Converges With Stocks – Bloomberg
BofA ending overdraft fees on debit cards – Reuters
Cash for Clunkers: Better than we thought – CNN/Money
U.S. Sales Tax Rates Hit Record High – Forbes
Defaulted Loans May Haunt Seniors – WSJ
MARKETS/INVESTING
Oil rises to near $82 on surging trade in China – Today
Gold firms as euro zone fiscal concerns linger – Reuters
Shares of government-backed companies jump – MarketWatch
Gold-Silver Ratio Slumps to Six-Week Low as Risk Appetite Grows – Bloomberg
Six Theories On Why the Stock Market Has Rallied – Washington’s Blog
OPEC raises 2010 oil demand forecast – AP
By Tim Iacono, Since 2005
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