Posted By thestatedtruth.com on January 31, 2012

More of the same…as personal income falls or flat lines, real estate will continue on a slippery slop. With record low interest rates, people, unlike in past recessions, still carry near record high amounts of debt. It is not indicative of a housing rebound. De-leveraging will continue to be a rage, unbeknown and not understood by most.

The November Case Shiller index is out…. According to the Top 20 City index composite, prices declined in 17 of 20 MSAs, with gains posted only in Phoenix, Denver and Minneapolis. At 137.52, the Seasonally Adjusted composite dropped to the lowest since February 2003, and is now a third lower than the housing peak in April 2006. Yet if not for that errant spike in home prices in April 2011, we have now seen 18 consecutive months of housing price declines since that “rebound” in late 2009 that everybody wanted to call a bottom. “Despite continued low interest rates and better real GDP growth in the fourth quarter, home prices continue to fall,” David Blitzer, chairman of the index committee at Standard & Poor’s, said in a statement. “The trend is down and there are few, if any, signs in the numbers that a turning point is close at hand.”

Category: Commentary, Economy, Finance, Interest Rates, Bonds, National News, Real Estate, Wall Street, World News | 21 Comments »
Tags: Case-Shiller, home prices, Housing Peak, Real Estate, Top 20

Posted By thestatedtruth.com on January 30, 2012

It’s all about demographics my dear Watson…Japan’s population of 128 million will shrink by one-third and seniors will account for 40 percent of it’s people by 2060.  And NO, we didn’t make this stuff up, it came from Japan’s Health and Welfare Ministry!

From AP:

Japan’s population of 128 million will shrink by one-third and seniors will account for 40 percent of people by 2060, placing a greater burden on a smaller working-age population to support the social security and tax systems.

The grim estimate of how rapid aging will shrink Japan’s population was released Monday by the Health and Welfare Ministry.

In year 2060, Japan will have 87 million people. The number of people 65 or older will nearly double to 40 percent, while the national work force of people between ages 15 and 65 will shrink to about half of the total population, according to the estimate, made by the National Institute of Population and Social Security Research.

The institute says Japan has been the world’s fastest aging country, and with its birthrate among the lowest, its population decline would be among the deepest globally in coming decades.

Category: Commentary, Economy, National News, Pensions and Retirement, World News | 58 Comments »
Tags: Demographics, japan, retired, Seniors, Sinking Sun

Posted By thestatedtruth.com on January 30, 2012

From ZeroHedge…..

We already know that Israel is on edge……the fuse may be looking for a match like a bug looking for a windshield!

Here’s a following of US naval developments and deployments in the Arabian Sea, which serve one purpose and one purpose only – to demonstrate US military strength in the Straits of Hormuz region and to keep Iranian ‘offensive passions’ subdued. Yet never has the US had a total of three aircraft carrier groups in the vicinity, always topping out at 2 in the Bahrain-based Fifth Fleet, most recently these being the CVN-70 Vinson and CVN 72 Lincoln, with a third boat present merely until a rotation in or out of the theater of operations was complete. That ‘s about to change, because Naval Today reports, the “US navy to deploy third carrier group to Persian Gulf”.

From Naval Today:

US Navy to Deploy Third Carrier Group to Persian Gulf

The carrier group based in Norfolk, VA will also include a guided missile cruiser and three guided missile destroyers, reports Interfax.

USS Abraham Lincoln had already entered the Persian Gulf via the Strait of Hormuz on Jan 22. She is escorted by a guided missile cruiser and two destroyers (USN), one British and one French warships.

Meanwhile, another US Navy’s carrier strike carrier group headed by USS Carl Vinson is stationed eastward the Strait of Hormuz, in northern part of the Arabian Sea washing southwest coast of Iran.

At present, the US has 15,000-men force deployed in Kuwait, expeditionary marine battalion, and amphibious landing group.

www.zerohedge.com

Category: Commentary, Economy, National News, National Security, Pictures, Wall Street | 100 Comments »
Tags: Aircraft Carrier, Arabian Sea, Battle Group, war

Posted By thestatedtruth.com on January 29, 2012

Pay attention everyone, we review important details here that could save you or a friend lots of money on real estate debt forgiveness!  Didn’t know there was such a thing?  Well read on….

 From the Los Angeles Times

Reporting From Washington— The window is closing rapidly on one of the most important tax-relief provisions enacted by Congress during the housing crisis to help financially strapped homeowners.

Although the 2007 law that allows taxpayers to exclude from income the amount of debt that is forgiven or canceled by their lenders doesn’t expire until Dec. 31, it’s likely to take every bit of the next 11 months for financially troubled homeowners to persuade their banks to either foreclose or allow their houses to be sold for less than they are worth.

So, here’s a heads up on some of the important details……

Under the tax code, borrowed money need not be reported as income because you have an obligation to repay. But if the lender subsequently cancels what you owe, the IRS requires that you report that debt as income because the duty to repay it no longer exists.

So, if you owe $250,000 and your lender forgives $50,000 of that debt in a $200,000 refinancing, that $50,000 is considered income. If your combined federal and state marginal tax rate is 36%, you would owe $18,000 in taxes.

Under the Mortgage Forgiveness Debt Relief Act of 2007, though, taxpayers are allowed to exclude from income the discharge of debt on their principal residence — at least until the end of 2012.

So when your lender agrees to a short sale, there is no tax on the difference between the selling price and the amount you owe. When your lender forecloses, there is no tax on the canceled debt. Even when you refinance at a lower loan balance, there is no tax on the difference between what you owed on the old loan and what you owe on the new one.

But, it’s going to take some time to get these things in motion, so now is the time to get moving…

As of October, it was taking lenders an average of 674 days to process a foreclosure, according to Lender Processing Services, a Jacksonville, Fla., mortgage technology firm. That’s more than 22 months, or almost two years from the time the process starts to when the property is actually repossessed. And lenders don’t even start the process until an average of 391 days after last receiving a payment.

A refinancing that involves principal amnesty is probably the quickest of the three debt-forgiveness scenarios. At Carrington Mortgage Services, a Santa Ana-based lender licensed in 32 states, a “short-refi” takes 45 to 60 days.

The really importand thing to remember, is that you should consult a tax professional before making any decisions.

Here are a few other important rules also… that you and your tax person need to know:

• The debt-relief law applies only to debt incurred to buy, build or improve a personal residence.

• The law does not apply to vacation homes or investment properties.

• The maximum amount you can treat as indebtedness is $2 million, or $1 million if you are married but filing separately.

For more detailed information, see IRS Publication 4681.

Category: Commentary, National News, Real Estate, Wall Street | 67 Comments »
Tags: debt, Forgiveness, Mortgage Debt, Real Estate, Tax Free

Posted By thestatedtruth.com on January 28, 2012

 

One would expect that with mortgage rates at record lows, extraordinarily accommodating weather, distressed sales being, as he puts it, “actively metered” by the banks and home-builder sentiment spiking, December results would have been a heck of a lot better. Instead, Mark asserts, “net-net this market segment continues to worsen.”

The low end of the price range, he points out, continues to be where the action is, “while anything over $300,000 is dead.” Moreover, the months ahead do not look very promising for the upside on housing, since he envisions more distressed supply coming to market as foreclosure completions spiral up to a multi-year high by the end of this quarter.

Robert Campbell, who publishes “The Campbell Real Estate Timing Letter,” and like Mark is savvy in the ways and wiles of the housing industry and has the record to prove it, is also in the bearish camp. Most particularly, he believes that home prices will plunge further this year, despite the lowest mortgage rates ever and the highest affordability levels in over two decades.

Housing prices, Bob contends, remain pressured by the pocketbook pinch on consumers burdened by weakening median income and heavy indebtedness, along with the formidable inventories of distressed properties that relentlessly batter the re-sale market.

He reckons inflation-adjusted home prices will have to drop another 10% to 15% before they stabilize. And he warns that even when they finally stop declining, prices are likely to bounce along the bottom for years before we see anything resembling a real bull market in housing. Investors, take heed.

Honestly, we don’t mean to pick on the home builders. But no economic recovery within memory ever amounted to all that much with housing flat on its back. And we fear this one is destined at best to continue to labor along until that critical industry shows reliable signs of righting itself.

Category: Charts and Graphs, Commentary, Economy, Interest Rates, Bonds, National News, Real Estate | 12 Comments »
Tags: charts, Equity, home equity, Home Owner, housing, Real Estate

Posted By thestatedtruth.com on January 27, 2012

Yep, that’s right, if you are a responsible paying citizen you get nothing, but as the The Three Stooges would say, a poke in the eye….we know, yes there are families that really need the help for legitimate reasons, but much of this involves a reward for greed, and irresponsible actions. Oh, how times have changed!

The HAMP expansion, called HAMP Tier 2, will triple incentives paid to banks that reduce mortgage principal, to a maximum of 63 cents for every dollar of debt forgiven. Investors who rent out their properties would also be eligible to refinance under the new rules. The deadline for applying for a HAMP loan modification is extended for a year, to the end of 2013.  HAMP loan modifications are limited to mortgages worth $729,500 or less. The new rules are expected to be effective by May.

“This is a hoot,” said Thomas A. Lawler, an economist and former Fannie Mae executive. “The government will pay Fannie and Freddie, who are effectively owned by the government, to reduce the principal on certain loans?”

From Bloomberg:

The Obama administration, seeking to help more homeowners lower their interest rates and shed mortgage debt, will relax the rules on a federal loan-modification program and triple its incentives to banks.

The revised Home Affordable Modification Program, or HAMP, also would pay Fannie Mae and Freddie Mac to forgive debt on homes that have lost value.

Housing and Urban Development Secretary Shaun Donovan, Assistant Treasury Secretary Tim Massad, and White House National Economic Council Director Gene Sperling announced the program changes today in a phone call with reporters.

“This will expand the reach of HAMP,” Massad said.

Category: Commentary, Economy, Finance, Interest Rates, Bonds, National News, Real Estate, Wall Street | 73 Comments »
Tags: Banks Fannie Mae, freddie mac, Free Money, HAMP, Real Estate

Posted By thestatedtruth.com on January 27, 2012

There has been an abundance of confidence in our system lately, so much so that an abnormal amount of spending has been come from savings, but history shows this often leads to disappointment.

This will likely be reflected going forward in the first quarter or half of 2012…..

Goldman On GDP: Warns Of Q1 Weakness

The change in real private inventories added 1.94 percentage points to the fourth-quarter change in real GDP after subtracting 1.35 percentage points from the third-quarter change. Private businesses increased inventories $56.0 billion in the fourth quarter, following a decrease of $2.0 billion in the third quarter and an increase of $39.1 billion in the second.

And…the U.S. Savings Rate fell to 3.7% in the fourth quarter, the lowest since Q4 2007.

From the just-released GDP report:

Real GDP increased 1.7 percent in 2011 (that is, from the 2010 annual level to the 2011 annual level), compared with an increase of 3.0 percent in 2010.

The increase in real GDP in 2011 primarily reflected positive contributions from personal consumption expenditures (PCE), exports, and nonresidential fixed investment that were partly offset by negative contributions from state and local government spending, private inventory investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.

Headline growth of 2.8% came in below expectations of 3.0%.

Personal consumption growth of 2.0% were below expectations of 2.4%.

The GDP price index only grew by 0.4%, well below expectations of 1.9%.

Category: Commentary, Economy, National News, Wall Street | 63 Comments »
Tags: 2011 GDP, gdp, Quarter 4 GDP, Savings Rate

Posted By thestatedtruth.com on January 26, 2012

Negative demographics as far as the eye can see. and it’s reflected in the median price for new homes, which just dropped from $215,700 to $210,300.

According to the Census Bureau (not NAR data), December New Home Sales declined from 321K to a seasonally adjusted annualized rate of 307K in December, on expectations of a rise to 321K from last month’s revised 315K. On a non-seasonally adjusted basis the U.S. sold a whopping 21K homes, the lowest since January 2011. According to Bloomberg, the 2011 number of 302K sales is the lowest on record.

Category: Charts and Graphs, Commentary, Economy, National News, Real Estate, Wall Street | 2 Comments »
Tags:

Posted By thestatedtruth.com on January 25, 2012

Bill Gross of PIMCO explains Fed decision on Tweeter

www.zerohedge.com

Category: Commentary, Economy, Interest Rates, Bonds, National News, Wall Street, World News | 62 Comments »
Tags: Bill Gross, Interest rates, Opinion, Tweet

Posted By thestatedtruth.com on January 25, 2012

The FED keeps stretching things out…one take is they are worried about other things not openly discussed…and, maybe worried about the thought that normal things might not go as planned either (but hope springs eternal)! 

FED Summary:  No QE3; ZIRP (Zero Interest Rate Policy) Extended Thru 2014

• FED EXPECTS TO MAINTAIN `HIGHLY ACCOMMODATIVE’ MONETARY POLICY
• FED SEES `EXCEPTIONALLY LOW’ RATES THROUGH AT LEAST LATE 2014
• FED TO KEEP REINVESTING HOUSING DEBT INTO MORTGAGE SECURITIES
• FED SAYS INFLATION `SUBDUED’
• FED SAYS HOUSING `REMAINS DEPRESSED’
• FED REITERATES `SIGNIFICANT DOWNSIDE RISKS’

Category: Commentary, Economy, Finance, Interest Rates, Bonds, National News, Wall Street, World News | 58 Comments »
Tags: Fed, Hope, Interest rates, No QE3, Planned

Posted By thestatedtruth.com on January 24, 2012

Apple is the American success story of the century.  This is one large pile of cash!

After generating $37.9 billion in cash, short and long-term equivalents in 2011, and a record $16 billion in Q4 alone (of which $11.8 billion in Long-Term Marketable Securities). The company’s total cash and equivalents horde is now just shy of $100 billion, or $97.6 billion to be more precise. Looked at in other terms, if Apple were a country, and its cash was equivalent to GDP, it would rank as the world’s 58th largest economy.

www.zerohedge.com

Category: Commentary, Economy, National News, Technology, Wall Street, World News | 55 Comments »
Tags: Apple Pile, Cash, Money

Posted By thestatedtruth.com on January 23, 2012

So…if your cell phone is a little bit edgy, now you know why!

From Washington (AP)

The sun is bombarding Earth with radiation from the biggest solar storm in more than six years with more to come from the fast-moving eruption.

The solar flare occurred at about 11 p.m. EST Sunday and will hit Earth with three different effects at three different times. The biggest issue is radiation, according to the National Oceanic and Atmospheric Administration’s Space Weather Prediction Center in Colorado.

The radiation is mostly a concern for satellite disruptions and astronauts in space. It can cause communication problems for polar-traveling airplanes, said space weather center physicist Doug Biesecker.

For the past several years the sun had been quiet, almost too quiet. Part of that was the normal calm part of the sun’s 11-year cycle of activity. Last year, scientists started to speculate that the sun was going into an unusually quiet cycle that seems to happen maybe once a century or so.

Now that super-quiet cycle doesn’t seem as likely, Biesecker said.

Category: Commentary, Economy, National News, Weather | 1,030 Comments »
Tags: Radiation, SolarStorm

Posted By thestatedtruth.com on January 22, 2012

Yep, looks sort of like the European currency and economic predicament….half way over the edge but confused and still thinking everything’s going to be OK!  Hmm…So far, so good! 

Category: Commentary, Economy, National News, Wall Street, World News | 64 Comments »
Tags: Bad Seats, Economy, European Predicament

Posted By thestatedtruth.com on January 22, 2012

This kind of reminds us of the dopes in Washington….clueless as to how to resolve anything in a logical way unless of course it costs us tax payers millions!

A toothpaste factory had a problem: they sometimes shipped empty boxes, without the tube inside. This was due to the way the production line was set up, and people with experience in designing production lines will tell you how difficult it is to have everything happen with timings so precise that every single unit coming out of it is perfect 100% of the time. Small variations in the environment (which can’t be controlled in a cost-effective fashion) mean you must have quality assurance checks smartly distributed across the line so that customers all the way down to the supermarket don’t get pissed off and buy another product instead.

Understanding how important that was, the CEO of the toothpaste factory got the top people in the company together and they decided to start a new project, in which they would hire an external engineering company to solve their empty boxes problem, as their engineering department was already too stretched to take on any extra effort.

The project followed the usual process: budget and project sponsor allocated, RFP, third-parties selected, and six months (and $8 million) later they had a fantastic solution — on time, on budget, high quality and everyone in the project had a great time. They solved the problem by using high-tech precision scales that would sound a bell and flash lights whenever a toothpaste box would weigh less than it should. The line would stop, and someone had to walk over and yank the defective box out of it, pressing another button when done to re-start the line.

A while later, the CEO decides to have a look at the ROI of the project: amazing results! No empty boxes ever shipped out of the factory after the scales were put in place. Very few customer complaints, and they were gaining market share. “That’s some money well spent!” – he says, before looking closely at the other statistics in the report.

It turns out, the number of defects picked up by the scales was 0 after three weeks of production use. It should’ve been picking up at least a dozen a day, so maybe there was something wrong with the report. He filed a bug against it, and after some investigation, the engineers come back saying the report was actually correct. The scales really weren’t picking up any defects, because all boxes that got to that point in the conveyor belt were good.

Puzzled, the CEO travels down to the factory, and walks up to the part of the line where the precision scales were installed.

A few feet before the scale, there was a $20 desk fan, blowing the empty boxes off the belt and into a bin.

“Oh, that,” says one of the workers — “one of the guys put it there ’cause he was tired of walking over every time the bell rang”.

Category: Commentary, Economy, Inspirational, National News | 95 Comments »
Tags: Problem Solving, Thinking, Thinking Out Of The Box, Waste

Posted By thestatedtruth.com on January 20, 2012

Confidence levels have been rising rapidly…and the government says things are getting better, people are starting to borrow again, using their credit cards more, and out and about in a spending mood….but the exhibit below tells a more realistic story of our current plight.  So, are things really any better then they were?  We’ll let you answer that one!

Chart: www.zerohedge.com

Category: Charts and Graphs, Commentary, Economy, National News, Personal Net Worth, Wall Street | 52 Comments »
Tags: Personal Income Chart, Plight

Posted By thestatedtruth.com on January 19, 2012

The six-month ahead outlook for Philly Fed shows a very high level of ‘hope’.

Expectations for the data was a 10.3 and it came at 7.3, a definitive miss to expectations. Revisions rise to 7.3 (from 6.8 revised) is heralded (in a short-lived manner) as evidence of improvement. Under the covers though, things aren’t so rosy. New Orders and Shipments dropped notably, number of employees was merely flat and while restocking seems to be occurring modestly (inventories improved) they still printed negative. On the six-months ahead outlook, expectations are for lower prices received but everything else reflects the hope-infused perception of steady growth – especially the notable rise in capex (as the diffusion index nears its cyclical peaks).

 www.zerohedge.com

Category: Charts and Graphs, Commentary, Economy, National News, Wall Street | 718 Comments »
Tags: Economy, Hope, Numbers, Philly Fed Data

Posted By thestatedtruth.com on January 19, 2012

Same old same…..things are getting better, but are they really?  Yes they are, but in 2008 we stopped on a dime. The Federal Reserve looks to be worried about deflation. We all should be too!

Initial Claims:

• Initial claims drop from revised 402K (as expected) in last week, to 352K this week, 50K swing in one week, on expectations of 384K. All in the seasonal adjustment, which tries to compensate for the 124K drop in Non Seasonally Adjusted claims. 
• This number was below the lowest Wall Street estimate of 363K.
• Continuing claims: 3.432MM, below expectations of 3.590MM, previous revised naturally higher from 3.628MM to 3.647MM. The reason? People on EUC and Extended benefits in last week: +105,000. More and more people move away from 6 month support to extended 99 week cliff.
• The decline in continuing claims was 215K, and the number of 3.432MM was the lowest since Sept 6, 2008, the week before the Lehman collapse (h/t Stone McCarthy)
• Decline likely “function of seasonal distortion,” likely “exaggerates strength in the labor market,” says BBG economist Joseph Brusuelas

• Source

Housing Starts and Permits:

• Largely irrelevant, as crawling at a bottom, but starts at 657K, below expectations of 680K, and down from 685K previously
• Permits in line with expectations at 679K, down from 680K before
• Volatile’’ multifamily dwellings category eased “slightly,” says Brusuelas. Even so, MFDs “likely to remain quite stout due” on modest increase in household formation, ownership-to-renter transition, tight apartments supply. Housing “still dead,” says Bloomberg economist Rich Yamarone
• Source

CPI:

• Headline CPI at 0.0% vs expectations of 0.1%, unchanged from last month
• Core CPI: +0.1% in line with expectations of +0.1 and down from 0.2% previously
• “Weak domestic aggregate demand,’’ slowing global economy likely to continue downward pressure on prices, says Bloomberg economist Joseph Brusuelas
• Fed “clearly concerned with the return of disinflation;” watch for “talk of further central bank action to support the economy” at next week’s FOMC meeting, says Brusuelas
• Source

www.zerohedge.com

Category: Commentary, Economy, National News, Real Estate, Wall Street | 11,690 Comments »
Tags: Deflation Worries, Economic Data, Same Old

Posted By thestatedtruth.com on January 19, 2012

It was going to happen sooner or later….a once mighty company, founded in 1880 by George Eastman and renamed Eastman Kodak in 1892, they controlled 90% of the film market by 1976, and were a part of the Dow Jones Industrial Average index for 74 years before being deleted in 2004. 

But before anyone gets any grand ideas about the stock, it’s going to be worthless, just like K-mart, GM, American Airlines and a whole slew of others that went bankrupt in the past few years. Just because the stock stub trades with a small value for a time doesn’t mean it will have any real net settlement value. Once it comes out of bankruptcy, the stock will trade as EK (new), no relation to the old except for name. The (new) company that comes out of bankruptcy will cancel/retire the old stock and issue (new stock), most of which will go to bondholders, banks the union/retirement program, preferred share holders and maybe some vendors owed money.  Stock holders are last in the pecking order to get anything and they usually don’t. 

A good recent example of this is General Motors, the old stock in bankruptcy traded for pennies, now GM (new) stock trades at 24.50….the GM old stock was cancelled and worthless, the GM (new) is a whole different company out of reorganization and was given to: the banks for secured loans, bond holders, preferred share holders, the GM retirement plan and union along with some vendors and others that had a financial claim. Common stock holders got nothing.  That’s right, zippo.

EK Files For BK…Bloomberg:

• *KODAK FILES FOR BANKRUPTCY IN NEW YORK
• *EASTMAN KODAK SECURES $950M IN DEBTOR-IN-POSSESSION FINANCING
• *KODAK TO MONETIZE NON-STRATEGIC INTELLECTUAL PROPERTY :EK US
• *EASTMAN KODAK SAYS NON-U.S. UNITS NOT INCLUDED IN U.S. FILING
• *KODAK SAYS CHAPTER 11 A `NECESSARY STEP’, `RIGHT THING TO DO’
• *KODAK EXPECTS TO PAY EMPLOYEE WAGES-BENEFITS :EK US

Eastman Kodak Company and Its U.S. Subsidiaries Commence Voluntary Chapter 11 Business Reorganization

Flow of Goods and Services to Customers to Continue Globally in Ordinary Course

Non-U.S. Subsidiaries Are Not Included in U.S. Filing and Are Not Subject to Court Supervision

Company Secures $950 million in Debtor-in-Possession Financing in U.S.

Kodak’s Reorganization to Facilitate Emergence as Profitable and Sustainable Enterprise

Business Wire

ROCHESTER, N.Y. — January 19, 2012

Eastman Kodak Company (“Kodak” or the “Company”) announced today that it and its U.S. subsidiaries filed voluntary petitions for chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

The business reorganization is intended to bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the Company to focus on its most valuable business lines. The Company has made pioneering investments in digital and materials deposition technologies in recent years, generating approximately 75% of its revenue from digital businesses in 2011.

Kodak has obtained a fully-committed, $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital. The credit facility is subject to Court approval and other conditions precedent. The Company believes that it has sufficient liquidity to operate its business during chapter 11, and to continue the flow of goods and services to its customers in the ordinary course.

Kodak expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the U.S. are not subject to proceedings and will honor all obligations to suppliers, whenever incurred. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course.

“Kodak is taking a significant step toward enabling our enterprise to complete its transformation,” said Antonio M. Perez, Chairman and Chief Executive Officer. “At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003. Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company.”

“After considering the advantages of chapter 11 at this time, the Board of Directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak,” Mr. Perez continued. “Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers.

“Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses.”

Mr. Perez concluded, “The Board of Directors, the senior management team and I would like to underscore our appreciation for the hard work and loyalty of our employees. Kodak exemplifies a culture of collaboration and innovation. Our employees embody that culture and are essential to our future success.”

Kodak has taken this step after preliminary discussions with key constituencies and intends to work toward a consensual reorganization in the best interests of its stakeholders. Kodak expects to complete its U.S.-based restructuring during 2013.

The Company and its Board of Directors are being advised by Lazard, FTI Consulting Inc. and Sullivan & Cromwell LLP. In addition, Dominic DiNapoli, Vice Chairman of FTI Consulting, will serve as Chief Restructuring Officer to support the management team as to restructuring matters during the chapter 11 case.

Category: Commentary, Economy, National News, Technology, Wall Street | 23 Comments »
Tags: Eastman Kodak Files BK, Kodak BK, Night Night Kodak

Posted By thestatedtruth.com on January 18, 2012

Interesting new products from the (CES) Consumer Electronics Show in Las Vegas……

www.ingerletter.com

Category: Commentary, National News, Pictures, Technology | 74 Comments »
Tags: CES, New Docking Cell Phone

Posted By thestatedtruth.com on January 18, 2012

“I have never let my schooling interfere with my education.” – Mark Twain

Category: Commentary, Education and Schooling, National News, Quote of the Day, Tid Bits, Uncategorized | 3 Comments »
Tags: Mark Twain, Quote of the Day

Posted By thestatedtruth.com on January 18, 2012

We’ve been wondering the same as new cars are flying off the lot…….American households “have been spending recently in a way that did not seem in line with income growth. So somehow they’ve been doing that through perhaps additional credit card usage,” Chicago Federal Reserve President Charles Evans said on Friday.  In an other ominous sign for America’s economic growth prospects, workers are paring back contributions to college funds and growing numbers are borrowing from their retirement accounts while the personal savings rate is plunging toward new lows. We won’t even get into the massive growth of college loans rant, that’s for later!

Insight: Recovery At Risk As Americans Raid Savings
By Jilian Mincer and Jonathan Spicer
Posted 2012/01/17 at 12:13 am EST

NEW YORK, Jan. 17, 2012 (Reuters) — More than four years after the United States fell into recession, many Americans have resorted to raiding their savings to get them through the stop-start economic recovery.

In an ominous sign for America’s economic growth prospects, workers are paring back contributions to college funds and growing numbers are borrowing from their retirement accounts.

After a few years of relative frugality, the amount of money that Americans are saving has fallen back to its lowest level since December 2007 when the recession began. The personal saving rate dipped in November to 3.5 percent, down from 5.1 percent a year earlier, according to the U.S. Commerce Department.

Some policymakers worry that a recent spike in credit card usage could mean that people, many of whom are struggling on incomes that have lagged inflation, are taking out new debt just to meet the costs of day-to-day living.

American households “have been spending recently in a way that did not seem in line with income growth. So somehow they’ve been doing that through perhaps additional credit card usage,” Chicago Federal Reserve President Charles Evans said on Friday.

“If they saw future income and employment increasing strongly then that would be reasonable. But I don’t see that. So I’ve been puzzled by this,” he said.

More at:http://www.newsdaily.com/stories/tre80g083-us-recovery-risk/

Category: Commentary, Economy, Education and Schooling, Finance, National News, Pensions and Retirement, Personal Net Worth, Wall Street | 69 Comments »
Tags: Borrowing Binge, Credit Cards, Rant, Savings Drain

Posted By thestatedtruth.com on January 18, 2012

IMF: 2 Year “Funding Gap” Hits $1 Trillion

• IMF SAID TO SEE POTENTIAL 2-YEAR FINANCING GAP AT $1 TRILLION
• IMF SAID TO SEEK RAISING LENDING RESOURCES BY $500 BLN

Fed Officials Open to Additional Easing as They Monitor Risks to Economy

Federal Reserve officials are staying open to further monetary easing this year as they monitor risks that threaten to move the economy further away from their mandate for stable prices and full employment.

Among the possible triggers for action, according to Ethan Harris, co-head of global economic research at Bank of America Merrill Lynch in New York: a slump in U.S. gross domestic product caused by a European recession, a more rapid slide in U.S. inflation than anticipated, and deteriorating U.S. payroll growth.

Category: Commentary, Economy, National News, Wall Street, World News | 22 Comments »
Tags: Fed Actions, Germany Cuts Growth, IMF Funding Gap

Posted By thestatedtruth.com on January 17, 2012

www.thestatedtruth.com supports this important issue. 

 Protest SOPA/PIPA    

For more information on this, click here: https://en.wikipedia.org/wiki/Stop_Online_Piracy_Act

Category: Commentary, National News | 68 Comments »
Tags: Black Out, Protest SOPA/PIPA, Web Goes Dark

Posted By thestatedtruth.com on January 17, 2012

No wonder the U.S. is telling Israel to cool they’re heals about Iran…if you want to make a bad situation worse, then start a war in the Middle East and watch oil go to $200 a barrel, then presto, a world depression that would make the 1930’s look like a picnic!

World Bank Cuts Economic Outlook, Says Europe Is In Recession And Warns Developing Economies To “Prepare For The Worst”

• WORLD BANK CUTS GLOBAL GROWTH OUTLOOK, SEES EURO-AREA RECESSION
• World Bank urges developing economies to “prepare for the worst” as it sees risk for European turmoil to turn into global financial crisis reminiscent of 2008
• Even achieving much weaker outcomes is very uncertain

www.zerohedge.com

Category: Commentary, Economy, National News, National Security, Outliers, Wall Street, World News | 319 Comments »
Tags: Outl, Prepare, World Bank Warns, Worst Outcome

Posted By thestatedtruth.com on January 17, 2012

This points to a global slowing in the economies of the world….The index has fallen for 19 days in a row, down almost 50%, its largest drop since the harrowing period of Q4 2008…….Capice.

By definition: The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index tracks worldwide international shipping prices of various dry bulk cargoes. The index provides “an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain.

The cost of dry bulk goods transportation has dropped in the last few weeks to its lowest level since January 2009 (back below 1000 according to today’s levels). It looks like the lower steel output in China and a decline in European imports is having its impact on global trade.

The index has fallen for 19 days in a row, down almost 50%, its largest drop since the harrowing period of Q4 2008.

www.zerohedge.com

Category: Charts and Graphs, Commentary, Economy, National News, Wall Street, World News | 2,771 Comments »
Tags: Baltic Dry Index, Cost Of Shipping, Shipping Index, Slowdown

Posted By thestatedtruth.com on January 16, 2012

“The Senator” was an old friend to many, and besides being the tallest cypress tree in the United States, it was also the oldest of its kind in North America. Even more interesting, it was the fifth oldest tree in the world.

Longwood, Florida

A 3,500-year-old Central Florida landmark burned to the ground.

A fire early Monday has destroyed the 125-foot-tall bald cypress tree known as “The Senator,” the centerpiece of Longwood’s Big Tree Park.

“The Senator” was the tallest cypress tree in the United States, and believed to be the oldest of its kind in North America, and the fifth oldest tree in the world.

Officials with Seminole Fire Rescue said they do not believe the fire is the result of arson.

Crews had to lay over 800 feet of hose just to get to the tree, but Steve Wright, with Seminole County Fire Rescue, said they could not save “The Senator.”

The tree was so old and hollow that it burned from the inside out.

“We saw some of the helicopter views,” Winfree said. “It looked like a giant torch.”

The tree got its name from Sen. Moses Overstreet, who donated the land to Seminole County in 1927.

More at: http://www.cfnews13.com/article/news/2012/january/370329/The-Senator-falls,-worlds-5th-oldest-tree-destroyed-by-fire-in-Longwood

Category: Commentary, National News, Tid Bits, Uncategorized, Weather | 5 Comments »
Tags: Landmark Burns, Oldest Cypress Tree Burns, The Senator, Tree Burns Down

Posted By thestatedtruth.com on January 15, 2012

Guess the idea is….why waste money on an exercise if the real think is coming?  Or maybe not, as last week Europe wanted western countries to postpone an embargo against Iranian oil exports by 6 months because of poor european economies.

The United States and Israel have agreed to postpone a large joint military exercise planned for this spring.

The drill, slated for May and named “Austere Challenge,” was announced in November by Andrew Shapiro, U.S. assistant secretary of State for politics-military affairs, at the Washington Institute for Near East Policy. The exercise would’ve included more than 5,000 U.S. and Israeli forces and, was a war game intended to simulate Israel’s ballistic missile defense. It would have  been the “largest and most significant joint exercise in the allies’ history,” Shapiro had said.

From Bloomberg: 

• ISRAEL, U.S. POSTPONE MILITARY EXERCISE, ISRAEL RADIO SAYS
• JOINT EXERCISE POSTPONED FOR BUDGET REASONS, RADIO SAYS
• U.S.-ISRAELI EXERCISE PLANNED TO BE BIGGEST EVER, RADIO SAYS
• EXERCISE WAS TO TAKE PLACE IN NEXT FEW MONTHS, RADIO SAYS
• ISRAEL SAYS JOINT U.S. MILITARY EXERCISE STILL UNDER DISCUSSION
• AGUE SAYS NOT LOOKING AT NO-FLY ZONE OVER SYRIA

Category: Commentary, National News, National Security, Wall Street, World News | 50 Comments »
Tags: Exercise Postponed, War Games

Posted By thestatedtruth.com on January 12, 2012

So…..back in September Kodak said it was weighing options, then issued a statement saying it has “no intention of filing for bankruptcy” and that it is pursuing patent sales. It looks like Eastman Kodak has about $1.6 billion in debt according to Yahoo Finance.  A Polaroid moment is close to being developed! 

Eastman Kodak Co. (EK) is in advanced discussions with Citigroup Inc. (C) to provide bankruptcy financing as the company prepares for a potential filing, said three people familiar with the matter.

Kodak may seek protection from creditors within weeks and then hold an auction to sell its patent portfolio, said the people, who asked not to be identified because the talks are private. Kodak may seek about $1 billion in so-called debtor-in-possession financing, though terms may change, two people said.

Advisers to Kodak are lining up a bidder that will be the frontrunner or so-called stalking horse bidder for the patent portfolio should the company file, one person said.

Moody’s Investors Service cut ratings on about $1 billion of Kodak’s debt on Jan. 5, citing “a heightened probability of a bankruptcy” as liquidity deteriorates.

Category: Commentary, National News, Wall Street | 53 Comments »
Tags: Digital Age, Instant camera, Kodak, Polaroid

Posted By thestatedtruth.com on January 12, 2012

While most of the U.S. has had a very mild winter, that is not the case in Alaska.

ANCHORAGE, Alaska

The worst winter anyone can remember in Alaska has piled snow so high people can’t see out the windows. More than twice the normal snow has already been dumped on Anchorage!

“The scary part is, we still have three more months to go,” said Kathryn Hawkins, a veterinarian who lives in the coastal community of Valdez, about 100 miles southeast of Anchorage. “I look out and go, where can it all go?'”

More than 26 feet of snow has fallen in Valdez since November. The 8-foot snow piles outside Hawkins’ home are so high she can’t see out the front or back of her house.

Category: Commentary, National News, Weather, World News | 58 Comments »
Tags: Alaska Snow, Record Bad Weather, Weather Wipeout

Posted By thestatedtruth.com on January 12, 2012

It’s all about demographics my dear Watson….here’s some food for thought!

First up let’s study a graph of the Census Bureau historical and forecast data for the peak-spending cohort population in the U.S. from 1980 to 2050.

The Age 45-49 cohort peaked in 2009 and will bottom out in 2022 after an estimated decline of 13.4% from the 2009 population. The Census Bureau’s estimate for 2012 would give us an additional 8.8% decline in numbers for the big spending cohort before bottoming out.

Economists and market analysts often think of the retiring boomers as the primary drag on the economy with their the transition from the accumulation phase of their life-cycle to the decumulation phase. But if we understand of the crucial role of consumption for our economic health (about 70% of GDP), a significant shrinkage in the number of peak spenders is a demographic headwind that will challenge us for years to come.

www.financialsense.com

Category: Charts and Graphs, Commentary, Economy, National News, Research, Wall Street, World News | 24 Comments »
Tags: Age, Baby Boomers, Demographics, Scoop

Posted By thestatedtruth.com on January 12, 2012

The good news for the consumer is that “experts” predict rock-bottom natural-gas prices through at least 2013. “We’re anticipating sustained low gas prices,” says Andy Steinhubl, from Bain & Co.’s North American oil and gas practice. 

This from The Wall Street Journal…..

U.S. energy companies are pumping so much natural gas out of the ground that prices are plummeting, and the cheap gas isn’t likely to evaporate anytime soon.

Natural-gas prices fell 5.7% Wednesday to their lowest level in over two years—good news for people who use gas to heat homes and for companies that use it to power factories.

For U.S. energy companies, however, the domestic natural-gas market is looking increasingly out of whack. Despite a 32% drop in prices last year, onshore production rose 10%, and it is expected to rise another 4% this year, according to Barclays Capital. As a result, prices are expected to remain low for at least the next couple years.

Earlier this week, Bank of America Merrill Lynch said gas prices could drop below $2 in the fall, a level unseen since 2002. Four years ago, it sold for around $9.

Many experts predict rock-bottom natural-gas prices through at least 2013. “We’re anticipating sustained low gas prices,” says Andy Steinhubl, co-head of consultancy Bain & Co.’s North American oil and gas practice.

Source: WSJ

Category: Charts and Graphs, Commentary, Commodities, Economy, National News, Oil and Nat Gas, Wall Street, World News | 51 Comments »
Tags: Energy Drilling, Gas Prices, Nat Gas, Oil

Posted By thestatedtruth.com on January 10, 2012

One more” bonus baby” and they’re sold out! 

Unbelievable…At the North American International Auto Show in Detroit, Aston Martin’s Julian Jenkins reveals that its  One-77 model at a price point of about $1.9 million is one unit away from sold out.

Category: Commentary, Economy, National News, Wall Street, World News | 6 Comments »
Tags: Aston Martin, Bonus Baby, Exspensive, One-77 Model Aston Martin, Sold Out

Posted By thestatedtruth.com on January 10, 2012

This is truly a statement about the rich.  Let’s clarify that, the very rich.

Porsche has its biggest backlog ever. Buyers of the 263,000-euro ($335,667) Lamborghini Aventador will have to wait more than a year for delivery, while demand for the 107-year-old Rolls-Royce brand (at $246,000 to $380,000 each) is breaking all time records.  Sales of other high-end cars, including Bayerische Motoren Werke AG (BMW)’s and Daimler AG (DAI)’s Mercedes-Benz,  also look set  to break  all time records for sales. according to IHS Automotive. The market researcher forecasts sales for the segment in 2012 of 7.02 million cars, up 13 percent from last year’s 6.23 million and beating the previous record of 6.27 million set in 2007.

Category: Commentary, Economy, National News, Personal Net Worth, Uncategorized, Wall Street, World News | 72 Comments »
Tags: High End, Rich, Wealthy

Posted By thestatedtruth.com on January 9, 2012

PIMCO ranks as one of the top 5 smartest bond money managers in the world…..we should pay attention to what they think.  EL-Erian and his business partner and PIMCO co-founder Bill Gross, along with another of the smartest money hedge fund managers Bridgewater, stated in separate reports last week that the economic bounce we’re seeing now is unlikely to last, because most of the spending is coming from borrowing (leveraging up) and from taking savings down. These are two bad combinations, while at the same time, the third being personal earnings, has been flat lining.  In addition, most assets held by consumers, ie stocks, IRA’s, and real estate have lost sizeable value in the last three years.  As the old saying goes, Not Good!

El-Erian on the unpredictability in global markets leading to extreme events around the world:

“Normally, we’re used to thinking of a bell shaped distribution. There’s a dominant theme and very thin tails. Today we’re looking at something different. We’re looking at a distribution that is much flatter and the tails are much fatter. Think of Europe. Increasingly, most people agree that Europe can no longer kick the can down the road. One of two things is likely to happen. Either the euro fragments completely or you strengthen the euro zone but change its construct. That is what the fiscal compact we just heard is about. Increasingly, as you look around the world, we are moving towards a bimodal distribution that has significant implications for how you invest.”

On where he sees the most market impact:

“First, it is not just risk. It is also opportunity. One exciting thing about this world is that when there are major transformations, there are both risks and opportunities. The biggest risk is interest-rate risk in sovereign space is becoming credit and default risk. The most extreme example is Greece. It used to be viewed as interest-rate risk–in the government bucket as stable. It has now become default risk. We may as well see haircuts in excess of 50%. The biggest risk is that people’s mindsets don’t evolve to understand that the underlying characteristics are changing.”

On whether the Federal Reserve should move on QE3:

“The Fed does not have enough policy instruments to deal with the challenges facing the economy. They’re trying to use communication as an extra tool now. WE have used rates, we have had QE, now you see them using communication, trying to push investors to take on more risk. The problem is two-fold. One is there is disagreement on the FOMC. Secondly, it is not a very effective policy instrument. There are not just limited benefits, but there are also costs and risks. The Fed is in a difficult position. It is trying to be active, but it does not have effective instruments at this stage.”

On whether the U.S. is stuck in a liquidity trap:

“That’s one of the views. Which is why not just jump start the whole thing and give a high inflation target and hope the system reflates. Critics talk about how difficult it is to produce the right outcome. You could overshoot and create a different problem. The fundamental issue is that the Fed cannot solve this alone. It is a bridge to somewhere. This has to include other agencies stepping up to the plate. So far, only the Fed has been doing its job. The others seem to be asleep at the wheel.”

On whether QE3 is appropriate for the economy at this time:

“I do not think that on its own [QE3] can produce the outcomes we want. The outcomes would be higher job creation and contained inflation. That is the fundamental issue. The Fed is willing to do things, but it cannot guarantee unfortunately outcomes. For good outcomes, we need other agencies to also be doing their jobs.”

On what needs to happen over the next few months to get over the mountain of debt facing European nations:

“We’re seeing an important shift in the narrative. It goes from saving the periphery to strengthening the core. We need to see Germany and France to agree on how they will ‘refound’ the euro zone. Secondly, we need to counter the continued fragility of the banks. We just heard about an Italian bank. Third, we need to be able to mix that containment with growth. Finally, we need to decide how the burden will be shared in the peripheral economies that are insolvent. It is quite a list. They will have to do a lot of work. Hopefully they will be able to do it.”

On how Europe’s crisis will affect the U.S. and whether it will be a situation where nations around the world go up and down together:

“I think it will be a bit of the latter because it is a massive head wind. No matter how strong your internal dynamics are, there is this massive headwind called Europe. The banks are interlinked around the world. A lot of companies sell in Europe or export to Europe. We cannot avoid Europe. It is a significant headwind everybody has to cope with.”

On the need for investors to stay defensive while remaining agile enough to take advantage of opportunities:

“One lesson from these big macro themes is that they tend to be indiscriminate. That is another way to say that they cause sell-offs in credit and stocks that are fundamentally sound. By focusing on the fundamentals and respecting the technicals, there are opportunities to be selectively offensive. Uncertainty and unpredictability should never lead to paralysis. It leads to figuring it out how the risk is changing and how the return is changing. We’re living in an exciting world where there are lots of realignments. Sources of risks and returns are changing.”

On where to invest safely right now:

“In the short term, the U.S. dollar is the best place. It is the cleanest dirty shirt. There aren’t pure shirts anymore out there, so you have to focus on the cleanest dirty shirt. In addition to dollar exposure for the short term, stay focused on some emerging currencies that continue upward migration in terms of wealth and income. Stay away from the high-beta currency that are likely to be incredibly volatile in this less predictable world.”

www.zerohedge.com

Category: Commentary, Economy, Finance, Interest Rates, Bonds, National News, Wall Street, World News | 12 Comments »
Tags: Economy Warning, PIMCO

Posted By thestatedtruth.com on January 9, 2012

Yep, everybody and their brother are out buying things…the mystery is, that the consumer is re-leveraging while most of their assets are deflating fast.  This will be double trouble.  PIMCO, Bridgewater and Soros have recently been warning about this.

Heads up…the just released G.19, aka Consumer Credit  data from the Fed shows a stunning November in which U.S. households borrowed a 10 year high $20.4 billion.  The bulk of this monster pile relates to new autos and student loans.  About 23% or $5.6 billion of that total was revolving credit.

www.zerohedge.com

Category: Charts and Graphs, Commentary, Economy, National News, Wall Street, World News | 7 Comments »
Tags: Borrowing, consumer credit, consumer debt, Releveraging

Posted By thestatedtruth.com on January 8, 2012

Category: Charts and Graphs, Commentary, Economy, Inspirational, National News, News Letters, Personal Net Worth, Wall Street, World News | 65 Comments »
Tags: One Percent, Rich, Top One Percent, Wealthy

Posted By thestatedtruth.com on January 8, 2012

Category: Charts and Graphs, Commentary, Economy, Finance, National News, News Letters, Personal Net Worth, Wall Street | 12,073 Comments »
Tags: Inequity, Millionaire;Money, Rich Man Poor Man

Posted By thestatedtruth.com on January 8, 2012

Can anyone guess where Vizio is located….Nope, didn’t think so, it’s not over seas, but in Irvine, California.  That’s BACK in the good old U.S.A.  Who knows, maybe this even becomes a trend.

Bloomberg:

Vizio Inc., the television maker that helped drive higher-cost rivals out of the business with rock-bottom prices, plans to bring the same mayhem to the personal-computer market.

Vizio will unveil two desktop PCs and three notebooks at the Consumer Electronics Show in Las Vegas next week, Chief Technology Officer Matt McRae said in an interview. The Windows-based machines will go on sale by June at a “a price that just doesn’t seem possible,” he said, declining to provide specifics.

“It’s very similar to TV — we want to get in there and disrupt it,” McRae said. “We think most PCs have been designed for the small-business users, that others have not done a very good job of making them entertainment devices.”

Vizio’s desktop PCs will sport 24- or 27-inch screens that hide their electronics within the displays, similar to Apple Inc. (AAPL)’s iMac. Vizio also plans to offer a notebook with a 15.6-inch screen and two ultra-thin versions with 15.6-inch and 14-inch screens. All the computers will include entertainment features that deliver audio and video to Vizio TVs and speakers.

Category: Commentary, Economy, National News, Technology, Tid Bits, Wall Street, World News | 80 Comments »
Tags: Built In U.S.A., Cheap Computers, Super Cheap Computers

Posted By thestatedtruth.com on January 7, 2012

We get the drift, but does the EU (European Union)? 

George Soros said “Today, the euro is potentially endangering the political cohesion of the European Union,” according to the Business Line newspaper in the south Indian city of Hyderabad.

“If the common currency were to break down, it will lead to the break up of the European Union itself. And this will be catastrophic not only for Europe but also for the global financial system.”

The euro zone crisis is “more serious and more threatening than the crash of 2008,” quoting Soros. In the near term, some of the euro zone countries may have to take more austerity measures because of the imbalances between the “creditor and the debtor countries”

“Unfortunately, they haven’t yet solved the acute financial crisis and that is causing the situation to deteriorate…and (it) is not at all clear it will have a solution,” he said.

Category: Commentary, Economy, National News, Wall Street, World News | 25 Comments »
Tags: Breaking Up, EU, euro, George Soros, Soros

Posted By thestatedtruth.com on January 6, 2012

We will be tested on this one, the new normal “just in time” economy may not be such a good idea, after all! 

The global economy could withstand widespread disruption from a natural disaster or attack by militants for only a week as governments and businesses are not sufficiently prepared to deal with unexpected events, a report by a respected think-tank said.

“One week seems to be the maximum tolerance of the ‘just-in-time’ global economy,” said the report by Chatham House, the London-based policy institute for international affairs.

The current fragile state of the world’s economy leaves it particularly vulnerable to unforeseen shocks. Up to 30 percent of developed countries’ gross domestic product could be directly threatened by crises, especially in the manufacturing and tourism sectors, according to the think-tank.

“I would like to think we can learn from those experiences and be more resilient for longer but it won’t happen unless governments and businesses are better prepared and put in place different supply chains which can be relied on when disasters strike,” said Alyson Warhurst, chief executive of UK-based risk analysis company Maplecroft.

“Contingency and business planning often assumes the return of status quo ante post-crisis. But this approach will be inadequate in a world of complex economic and social risks, when there is no return to business-as-usual practices,” said Bernice Lee, the report’s lead author.

“Industries – especially high-value manufacturing – may need to re-consider their just-in-time business model in an interdependent world,” she added.

Category: Commentary, Economy, National News, National Security, Technology, Tid Bits, Wall Street, World News | 44 Comments »
Tags: Business Model, Complex, Economy, Just In Time Economy, Prepare