thestatedtruth.com | August 27, 2010
08/27/2010 The WSJ’s Simon Constable interviews Robert Shiller.  He says that an economic double dip may be “imminent.”  Shiller also believes that when the NBER looks back at the data, Q3 of this year will mark the beginning of the second dip of the recession. Ironically, since up to now the previous recession has never actually […]
thestatedtruth.com | August 26, 2010
Modest is putting it bluntly…..There was some modestly encouraging news. The percentage of mortgage borrowers receiving foreclosure notices fell slightly to 4.57 percent in the April-to-June quarter.  Government efforts haven’t made much of a difference. Nearly half of the 1.3 million homeowners who have enrolled in the Obama administration’s main mortgage-relief program have been cut loose […]
thestatedtruth.com | August 26, 2010
One reason of many for a tough road ahead…..       From JPM……The latest profit recovery (the three red dots) is reliant on declining labor costs like none before it. A profit recovery whose foundation is so reliant on sustained high productivity and low real wage growth should not command a very high P/E multiple.  A recent JPM […]
thestatedtruth.com | August 26, 2010
The Canary in the coal mine.    Sounds like a bad situation is setting itself up here…… We went over some of this just a few days ago……It’s an unfolding disaster…. Illinois Teachers’ Retirement System, Springfield, plans to sell $3 billion in investments, or about 10% of its $33.1 billion in assets in the current fiscal year […]
thestatedtruth.com | August 26, 2010
Hmm…..Two months in a row, right in the middle of the traditional best seasonal time of the year for real estate….not one new home was sold valued above $750,000 in the whole U.S. according to David Rosenberg (he worked for Merrill Lynch and now resides in Canada as chief economist and strategist at Gluskin Sheff). …..Attitudes towards […]
thestatedtruth.com | August 26, 2010
In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify. His proposal was rejected 57-42 on a party-line vote because, …………Senator Chris Dodd (D-Conn) explained, “passage […]
thestatedtruth.com | August 25, 2010
An economic recovery doesn’t look anything like this: www.dailyreckoning.com
thestatedtruth.com | August 25, 2010
NIKOLA TESLA         THE GENIUS WHO LIT THE WORLD             Nikola Tesla was born on July 10, 1856 in Smiljan, Lika, which was then part of the Austo-Hungarian Empire, region of Croatia. His father, Milutin Tesla was a Serbian Orthodox Priest and his mother Djuka Mandic was an inventor in her own right of household […]
thestatedtruth.com | August 25, 2010
The big players always knew that real estate loans were non-recourse loans. They walk-away voluntarily.  Remember  the commercial market is more professional than housing. As  more of the big boys bite the dust,  the huge bounce will  crest, and down she comes. Pension funds, insurance companies, small banks, retirement accounts etc. get hammered. Commercial Property Owners Choose to Default By […]
thestatedtruth.com | August 24, 2010
Pension funds everywhere had better pay attention to what’s going on with the Illinois Teachers Retirement System. It’s a wake up call……Hello, anybody there! When the financial crisis erupted, it first hit banks, insurance companies, hedge funds, real estate/ private equity funds, asset managers, and then hit pension funds. But pensions remain very vulnerable because […]
thestatedtruth.com | August 24, 2010
Beijing has a 62-mile traffic jam near the Chinese capital that could last until mid-September.  It has become a symbol of the dark side of China’s automobile age. Officials say traffic has been snarled along the outskirts of Beijing stretching toward the border of Inner Mongolia since roadwork on the Beijing-Tibet Highway started Aug. 13. The jam […]
thestatedtruth.com | August 24, 2010
Existing home sales fell to their lowest level in over 15 years in July as inventories soared.   It portrays a grim picture for the housing market absent government support. Home resales dropped a record 27.2% or nearly twice as much as analysts had expected to an annual rate of 3.83 million in July, according to the National Association of […]
thestatedtruth.com | August 23, 2010
By Todd Harrison of Minyanville Seeking Solutions In An Uncertain World We used to play for silver, now we play for life; ones for sport and one’s for blood at the point of a knife. –Grateful Dead We live in interesting times. During the last two years, a financial virus spawned and infected the economic […]
thestatedtruth.com | August 23, 2010
Let’s keep this in mind…..Quoting PIMCO’s Bill Gross on real estate mortgages, Fannie Mae and Freddie Mac….”To suggest the private market can come back in and take the place [of the government] is simply impractical. It won’t work”. Sources say the Obama administration is floating the idea  that any federal backing of mortgages be paid for […]
thestatedtruth.com | August 23, 2010
Bill Gross reviewed demographics in his PIMCO August Investment Outlook, and he showed a graph, “Deep Demographic Doo-Doo”…..Now we can read David Rosenberg’s take on the matter. Today David Rosenberg begins to tackle the U.S. demographic issues from his own perspective, with his preliminary conclusions, not validating any current optimistic perspectives in the U.S. economy: “starting next […]
thestatedtruth.com | August 23, 2010
Milton Friedman: “The most efficient way of spending money is to spend your own, and the least efficient way is to spend other people’s “If you go out to lunch and have to pay your own bill, you have what you can afford. If someone else is paying, you may just have the steak and lobster.â€.
thestatedtruth.com | August 23, 2010
One more reason that the average person on main street has no chance, and that’s official! Interest rates continue to drop for the U.S. Treasury, large companies and home buyers, but for most of the 381 million U.S. credit-card accounts borrowing rates have been flying to the upside at an alarming pace. Amoung the reasons: […]
thestatedtruth.com | August 22, 2010
The Phillie Fed report was just awful. Buried in the details was the fact that the hours-worked index is collapsing, consistent with previews to past recessions. Very worrisome. (From my favorite slicer and dicer of data, Greg Weldon: www.weldononline.com) Bottom line? It is going to be a tough environment for the next 6-8 years. That […]
thestatedtruth.com | August 21, 2010
So, what does our government (boneheads) expect. The emerging new economic power of the world is China. They are also the largest holder of our debt (by the way, this sets up the potential of financial warfare). Doesn’t logic say that military power will follow! It might behove the United States NOT to sell Taiwan […]
thestatedtruth.com | August 20, 2010
HAMP stands for Home Affordable Modification Plan…… The key here is that these borrowers are still up to their eyeballs in debt after the modification. From Treasury: HAMP Servicer Performance Report Through July 2010 According to HAMP, there are 255,934 “active trials”, down from 364,077 last month. There is still a large number of borrowers in limbo […]
thestatedtruth.com | August 20, 2010
Quoted from Art Cashin on the floor of The New York Stock Exchange Yesterday, there was a bit of floor buzz on a Bloomberg TV item. The story was that when the President headed off to vacation, he assigned two top defense aides to follow him. That raised some discussion about whether an Israeli move […]
thestatedtruth.com | August 20, 2010
  Aug 20, 2010   PIMCO’s Bill Gross Has A Big Idea…..Actually JP Morgan might have started these thoughts.  Question: Is It Fair To Save The Irresponsible At The Expense Of The Prudent And Conservative?  Where is the bonus for being fiscally responsible?  Auh, there is none unless your in financial trouble! At Tuesday’s […]
thestatedtruth.com | August 20, 2010
We’re sure that everyone has the best intentions to pay these hardship loans back, but……. A new study by Fidelity says record number of workers tapped their retirement funds and made hardship withdrawals from their accounts in the second quarter. According to the Fidelity study, “Among the 11 million workers whose 401(k) plans are run by Fidelity, […]
thestatedtruth.com | August 19, 2010
Congressional Budget Office director Doug Elmendorf who said that in reality the budget deficit could come in much higher than the just disclosed estimates, and the recent economic data releases have been “more negative” than data factored into the projection. Which, in government talk, means that the real deficit will likely come at least 20-30% higher, […]
thestatedtruth.com | August 19, 2010
 U.S. commercia real estate mall prices fall almost 11% in second quarter.          Question……To whom would one sell commercial property to if forced in this environment?   The red ink is going to be massive. The plunge is on.  Let’s hope the powers to be never require this stuff to be marked to market by the small banks or pension funds […]
thestatedtruth.com | August 19, 2010
A scary setup……Greece is just the beginning, not an end, we have started a spiral. The dominoes are now falling one by one. Life will get a lot harder for the entire world including here in the U.S (we haven’t even got to the austerity part here), we’re now entering the twilight zone. The solutions are […]
thestatedtruth.com | August 18, 2010
thestatedtruth.com | August 18, 2010
thestatedtruth.com | August 18, 2010
By David Mildenberg and Jody Shenn Aug 18, 2010 Bank of America and JPMorgan Chase & Co. are among 11 lenders that could suffer $133.8 billion in combined losses as mortgage-bond investors and insurers demand refunds for soured loans, according to an analysis by Compass Point Research and Trading LLC. That’s the base estimate by analyst […]
thestatedtruth.com | August 17, 2010
From Zerohedge.com    08/17/2010 The one must watch interview of the week (if not of the year) features Hayman Capital’s Kyle Bass. Bass, who correctly called the subprime implosion (and profited handsomely from it) as a iconoclast contrarian to conventional wisdom, tells David Faber that “given my outlook on the world, I don’t know how I […]
thestatedtruth.com | August 17, 2010
American households pared their debts last quarter, closing credit card accounts and taking out fewer mortgages as unemployment persisted near a 26-year high, a survey by the Federal Reserve Bank of New York showed. Consumer indebtedness totaled $11.7 trillion at the end of June, a decline of 1.5 percent from the previous three months and […]
thestatedtruth.com | August 17, 2010
Big changes coming to the housing market. One thing you can be assured of, this will end badly, it always does when the government gets heavily involved. “To suggest that there’s a large place for private financing in the future of housing finance is unrealistic,â€Â  “Government is part of our future. We need a government balance […]
thestatedtruth.com | August 16, 2010
The ECRI index is an important leading indicator. It has now fallen for 10 straight weeks. There are three insurmountable problems in the US economy that are of a magnitude and gravity which can only be remedied by money printing: Federal and state deficits will soon escalate at an exponential rate. The US Federal debt […]
thestatedtruth.com | August 16, 2010
Debt unwind means deflation! The U.S. is facing a “painful period†in the next five years as homeowners and governments unwind debt built up during the housing boom, Berkshire Hathaway Inc.’s David Sokol said today. “All of that just feeds into a slow-growth environment,â€â€œIt’s going to be a painful periodâ€Â “People have been shocked into […]
thestatedtruth.com | August 15, 2010
Even after looking at the market’s rebound from the lows of 2009, nest eggs remain severely impaired. As of the first quarter of 2010, net household assets—homes, 401(k) plans, pension assets and other investments minus debts—stood at $54.6 trillion, down an average of 18% from the end of 2007.  We actually think the losses are higher but we’ll […]
thestatedtruth.com | August 15, 2010
A major class struggle lies dead ahead!  The gap between the super-rich, the wealthy and “the rest of us” has widened, forming what is in essence two Americas. Economists Emmanuel Saez and Thomas Piketty have reported that the top 10% of earners took home about half of all income. According to Moody’s Analytics research, the top 5% […]
thestatedtruth.com | August 15, 2010
The FHA is almost broke, is government supported and they back 30% of all loans outstanding….To make matters more interesting, in its 76-year history, the FHA has never required a credit score from borrowers. (No wonder they’re broke). At a 580 credit score and above, borrowers would be eligible for a 3.5% down payment (still ridiculous). It is well below scores […]
thestatedtruth.com | August 14, 2010
This couldn’t be a worse investment for the average person, they call them Junk Bonds for a reason. Take a guess why! It will end in a very bad way. U.S. companies issued risky “junk” bonds at a record clip this week, taking advantage of keen investor (idiots) appetite for returns (fools gold) amid declining interest rates and […]
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