I recieved this in my email box today.-Lou
Sometime this year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the
Q and A format:
Q. What is an Economic Stimulus Payment? A. It is money that the federal government will send to taxpayers..
Q. Where will the government get this money? A. From taxpayers.
Q. So the government is giving me back my own money? A. No, they are borrowing it from China. Your children are expected to repay the Chinese.
Q. What is the purpose of this payment? A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.
Q. But isn’t that stimulating the economy of China? A. Shut up."
Saturday, February 7, 2009
Bank Failure Friday
At least it was only one bank this Friday. As many as 300 banks will fail this year.-Lou
California's Alliance Bank marks eighth failure of the year
SAN FRANCISCO (MarketWatch) -- Culver City, Calif.-based Alliance Bank was closed by regulators Friday, marking the eighth bank failure of the year amid the ongoing credit crisis, the Federal Deposit Insurance Corporation said. San Diego-based California Bank & Trust has agreed to assume the failed bank's deposits, the FDIC said. Alliance Bank had $1.14 billion in assets and $951 million in total deposits as of Dec. 31, the FDIC said
California's Alliance Bank marks eighth failure of the year
SAN FRANCISCO (MarketWatch) -- Culver City, Calif.-based Alliance Bank was closed by regulators Friday, marking the eighth bank failure of the year amid the ongoing credit crisis, the Federal Deposit Insurance Corporation said. San Diego-based California Bank & Trust has agreed to assume the failed bank's deposits, the FDIC said. Alliance Bank had $1.14 billion in assets and $951 million in total deposits as of Dec. 31, the FDIC said
Friday, February 6, 2009
"Stimulus" Deal reached?
Two things: Looks like politicians care not what public opinion says. And why does a Senator have to be present in Congress to register his vote in this day and age??-Lou
Officials say tentative stimulus deal reached
WASHINGTON (AP) - Amid stunning new job losses and yet another bank failure, key senators and the White House reached tentative agreement Friday night on an economic stimulus measure at the heart of President Barack Obama's recovery plan. Two officials said the emerging agreement was for a bill with a $780 billion price tag, but there was no immediate confirmation.
The tentative agreement capped a tense day of back room negotiations in which Senate Majority Leader Harry Reid, joined by White House chief of staff Rahm Emanuel, sought to attract the support of enough Republicans to give the measure the needed 60-vote majority.
Officials strongly suggested that Sen. Edward M. Kennedy's vote would be needed to assure passage. The Massachusetts Democrat, battling a brain tumor, has been in Florida in recent days and has not been in the Capitol since suffering a seizure on Inauguration Day more than two weeks ago.
Read Article Here:
http://www.breitbart.com/article.php?id=D966D55O0&show_article=1
Officials say tentative stimulus deal reached
WASHINGTON (AP) - Amid stunning new job losses and yet another bank failure, key senators and the White House reached tentative agreement Friday night on an economic stimulus measure at the heart of President Barack Obama's recovery plan. Two officials said the emerging agreement was for a bill with a $780 billion price tag, but there was no immediate confirmation.
The tentative agreement capped a tense day of back room negotiations in which Senate Majority Leader Harry Reid, joined by White House chief of staff Rahm Emanuel, sought to attract the support of enough Republicans to give the measure the needed 60-vote majority.
Officials strongly suggested that Sen. Edward M. Kennedy's vote would be needed to assure passage. The Massachusetts Democrat, battling a brain tumor, has been in Florida in recent days and has not been in the Capitol since suffering a seizure on Inauguration Day more than two weeks ago.
Read Article Here:
http://www.breitbart.com/article.php?id=D966D55O0&show_article=1
US Inflation Could Hit 200%: Dr. Doom
I respect Marc Faber, he was well ahead of everyone predicting the current economic crisis. He was called Dr. Doom well before I was. Watch the video.-Lou
The US risks being hit by Zimbabwe-style hyperinflation and there are signs that the world's biggest economy risks turning into a banana republic, Marc Faber, author of the Gloom, Doom & Boom report, told CNBC's "Asia Squawk Box."
"In the US, we have a totally new school, and it’s called the Zimbabwe school," Faber said. "And it’s founded by one of the great leaders of this world, Mr Robert Mugabe, that has managed to totally impoverish his own country. And that is the monetary policy the US is pursuing."
Watch Video Here:
Payrolls plunge 598,000, the most since 1974
I actually thought the number would be 700,000. My 2009 Financial Forecast predicted the unemployment rate would hit 9% this year, I fear that number is too low. Times are tough and getting worse.-Lou
Payrolls plunge 598,000, the most since 1974
Unemployment rate jumps to 7.6% on widespread job losses
WASHINGTON (MarketWatch) - The fury of the recession intensified in January, as the unemployment rate jumped to 7.6% while nonfarm payrolls fell by the largest amount in 34 years, the Labor Department reported Friday.
Nonfarm payrolls fell by a seasonally adjusted 598,000 in January after a revised loss of 577,000 in December, the government said. It's the largest payroll loss since December 1974, according to a survey of workplaces. Payrolls fell by 597,000 in November.
"Job losses were large and widespread across the major industry sectors," said Keith Hall, head of the Bureau of Labor Statistics. Manufacturing saw its largest decline in 26 years.
Read Article Here:
Bank of America Slides on Concern for Nationalization
I have been watching BAC closely and it looks like they are in dire trouble. They will be next in line for a $100 billion plus dollar federal bailout. They will really be "Bank of America"-Lou
Bank of America Slides on Concern for Nationalization
Feb. 5 (Bloomberg) -- Bank of America Corp., the nation’s largest bank, declined to its lowest level in New York trading since 1984 on concern regulators may seize the company after a $138 billion U.S. bailout package failed to halt the slide.
The bank fell 15 cents, or 3.2 percent, to $4.55 at 12:20 p.m. in New York Stock Exchange composite trading, and earlier declined as much as 20 percent to its lowest level since October 1984. The stock of the Charlotte, North Carolina-based company has dropped for six days and lost more than two-thirds of its value this year.
Read Article Here:
U.S. Treasury default bets surge, hit new record
The price of Credit Default Swaps on US Treasuries has been steadiliy increasing for the last six months. A year ago they traded at only 15 basis points and today they are 82 basis points. The world, rightfully so, believes that US debt is becoming more risky.-Lou
U.S. Treasury default bets surge, hit new record
NEW YORK, Feb 4 (Reuters) - Rising U.S. government borrowing has a growing number of investors betting on a potential default by the Treasury down the line, according to credit default swaps data on Wednesday. According to CMA DataVision, five-year U.S. CDS spreads stood at 82 basis points on Wednesday, having closed on Tuesday at a record 85.9 basis points. As a result, it currently costs $82,000 a year to protect $10 million of U.S. debt.
That is up tenfold from levels seen a year ago and even more from the negligible levels that were common before the credit crisis. The CDS market is used to hedge against the possibility of sovereign and corporate defaults, and has played a controversial role in exacerbating the credit crisis.
U.S. Treasury default bets surge, hit new record
NEW YORK, Feb 4 (Reuters) - Rising U.S. government borrowing has a growing number of investors betting on a potential default by the Treasury down the line, according to credit default swaps data on Wednesday. According to CMA DataVision, five-year U.S. CDS spreads stood at 82 basis points on Wednesday, having closed on Tuesday at a record 85.9 basis points. As a result, it currently costs $82,000 a year to protect $10 million of U.S. debt.
That is up tenfold from levels seen a year ago and even more from the negligible levels that were common before the credit crisis. The CDS market is used to hedge against the possibility of sovereign and corporate defaults, and has played a controversial role in exacerbating the credit crisis.
Thursday, February 5, 2009
The Financial Physician TV Program
My TV show is getting closer to reality as a number of networks have expressed interest. Here is the pilot episode
Sadly Juliet Died January 2008
Here is the full pilot episode:
http://www.thefinancialphysician.com/FP.htm
Sadly Juliet Died January 2008
Here is the full pilot episode:
http://www.thefinancialphysician.com/FP.htm
Glenn Beck on Obama's 'Change': Socialism
I love Glenn Beck. You have to watch this video, I agree with everything he says. It's also very entertaining. God Help Us.-Lou
Watch Video Here:
Bank of England Cuts Main Rate a Half Point to 1%
The lowest rate since 1694? This is not the "run of the mill" financial crisis dear reader. Is there any doubt that gold is going much higher?-Lou
Bank of England Cuts Main Rate a Half Point to 1%
Feb. 5 (Bloomberg) -- The Bank of England lowered the benchmark interest rate to 1 percent, extending the most aggressive round of cuts in its three-century history as officials try to limit fallout from the deepening recession.
The nine-member Monetary Policy Committee, led by Governor Mervyn King, cut the bank rate to 1 percent from 1.5 percent. That’s the lowest since the central bank was founding in 1694 by William III to fund a war against France. The move matched the median estimate of 61 economists of a Bloomberg News survey.
The U.K. economy will shrink the most since 1946 this year and faster than any other industrialized country, International Monetary Fund forecasts show. Prime Minister Gordon Brown’s government has given the central bank powers to spend up to 50 billion pounds ($73 billion) on bonds and commercial paper as interest rates lose their potency to aid economic growth.
Read Article Here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajtgG7qtp_10&refer=worldwide
Bank of England Cuts Main Rate a Half Point to 1%
Feb. 5 (Bloomberg) -- The Bank of England lowered the benchmark interest rate to 1 percent, extending the most aggressive round of cuts in its three-century history as officials try to limit fallout from the deepening recession.
The nine-member Monetary Policy Committee, led by Governor Mervyn King, cut the bank rate to 1 percent from 1.5 percent. That’s the lowest since the central bank was founding in 1694 by William III to fund a war against France. The move matched the median estimate of 61 economists of a Bloomberg News survey.
The U.K. economy will shrink the most since 1946 this year and faster than any other industrialized country, International Monetary Fund forecasts show. Prime Minister Gordon Brown’s government has given the central bank powers to spend up to 50 billion pounds ($73 billion) on bonds and commercial paper as interest rates lose their potency to aid economic growth.
Read Article Here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajtgG7qtp_10&refer=worldwide
Obama warns of need for stimulus bill right away
No different than when the Bush Administration did the same thing last fall, "pass the big spending bill or we are doomed". We should not commit to spending $1 trillion without a long debate. Using fear has been the way many freedoms have been usurped historically. -LouObama warns of need for stimulus bill right away
WASHINGTON – President Barack Obama warned on Thursday that failure to act on an economic recovery package could plunge the nation into a long-lasting recession that might prove irreversible, a fresh call to a recalcitrant Congress to move quickly.
In an op-ed piece in The Washington Post, the president argued that each day without his stimulus package, Americans lose more jobs, savings and homes. His message came as congressional leaders struggle to control the huge stimulus bill that's been growing larger by the day in the Senate.
The addition of a new tax break for homebuyers Wednesday evening sent the price tag well past $900 billion.
Read Article Here:
Jobless claims surge to 626,000, highest since '82
Unfortunately, the employment situation is deteriorating very rapidly. Tomorrow's non-farm payroll numbers and unemployment rate will most likely be horrible. Until employment stabilizes, the economy will continue it's depression like contraction-Lou
Jobless claims surge to 626,000, highest since '82
WASHINGTON (MarketWatch) - The number of new claims for state unemployment benefits surged to their highest level since 1982, the Labor Department reported Thursday, a sign that the U.S. labor market is deteriorating at a rapid rate.
Initial jobless claims rose 35,000 to a seasonally adjusted 626,000 in the week ended Jan. 31. This put the number at the highest level in 26 years.
Read Article Here:
http://www.marketwatch.com/news/story/Jobless-claims-surge-highest-level/story.aspx?guid=%7B215AFEAD%2D1798%2D4EF1%2DB08F%2DB2857FECD580%7D
Jobless claims surge to 626,000, highest since '82
WASHINGTON (MarketWatch) - The number of new claims for state unemployment benefits surged to their highest level since 1982, the Labor Department reported Thursday, a sign that the U.S. labor market is deteriorating at a rapid rate.
Initial jobless claims rose 35,000 to a seasonally adjusted 626,000 in the week ended Jan. 31. This put the number at the highest level in 26 years.
Read Article Here:
http://www.marketwatch.com/news/story/Jobless-claims-surge-highest-level/story.aspx?guid=%7B215AFEAD%2D1798%2D4EF1%2DB08F%2DB2857FECD580%7D
Quote Of The Day
“The toughest job to get in the future will be the elderly person greeting you as you enter the local Wal-Mart.” -John Talbott, Author of the book 'Contagion"
Gold prices could hit $1,500, fears Merrill Lynch CIO
Got Gold? I disagree with him, I think his number is too low.-LouGold prices may hit $1,500 (Dh5,509) an ounce in the next 12 to 15 months, Gary Dugan, the Chief Investment Officer (CIO) of Merrill Lynch, said yesterday.Dugan termed his apprehensions of gold striking such a high as a "fear" that may come true. He reasoned that such a price would mean the other commodities and streams of investments have been shunned by investors.
With confidence in currencies shaken to the core, the yellow metal is increasingly assuming the role of "the most trusted currency", Dugan said. "We have never seen such a rush to buy gold. It's bringing in security and it's still affordable."
Read Article Here:
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