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May 2009



High Mortgage Modification Defaults With Double Wammy To Tax Payers

May 31, 2009 – Comments (3)

Mish always highlights the "meat" of a post, as he has done in More Prime Defaults.  [more]



Keynesian Economics Are Garbage

May 29, 2009 – Comments (11)

Seems to me that an evaluation of economic history shows that Keynesian economics tends to always end with massive debt and a heap of hurting and bubbles.  This run has been one of the longer runs of this stupidity.  Austrian economics makes much more sense to me.

Keynesians please exit stage left.



What do you need?

May 29, 2009 – Comments (2)

How much of your future needs have you bought today with debt?



Today's Lesson

May 27, 2009 – Comments (19)

Really, this is what I looked at with my students in math today.  [more]



Pray tell, what is AAA?

May 27, 2009 – Comments (7)

Pension Pulse has a post discussing inflation as a way to manage debt.  [more]



Bubble Profits

May 27, 2009 – Comments (5)

Oh goodie, more cheating on profits.



3rd wave of foreclosures

May 25, 2009 – Comments (8)

I am still sitting on the sidelines as I still believe the worst is not behind us.  The next wave of foreclosures to be dealt with are the ones coming from the job losses.  I think it will be interesting how this wave gets dealt with when the markets have already been through incredible stress.    [more]



Dollar Value of Bank Failures

May 24, 2009 – Comments (5)

This CR post is couple days old now, but it goes nicely with my last post questioning what happens now that the FDIC deposits have been wiped out.  [more]



FDIC broke, now what?

May 22, 2009 – Comments (7)

Market Ticker's post on bank failures, the last bank failure, BankUnited, is costing the insurance $4.9 billion.  [more]



Thoughts on China

May 21, 2009 – Comments (2)

I have seen a couple posts on economic decline in China, one from naked capitalism.    [more]



I'm bullish when I see productivity driving wealth.

May 21, 2009 – Comments (4)

Leo Kolivakis has an excellent post that looks at the triple hit to the markets,  The asset decline is the housing market is about 1/3rd and comparable to the 1930s.  An interesting point is that some people still expect the market to recover to what they paid kind of thing and over time people will adjust spending to their beliefs of their level of wealth.  [more]



More charts on S&P earnings

May 18, 2009 – Comments (27)

Wow, S&P trading at a P/E of 122 now????

Look at these charts on Big Picture.



Oil Storage

May 15, 2009 – Comments (7)

Mish has a post about how wholesale prices are declining, but what got my attention in the post is that it is the second time recently that I have read about increasing oil storage happening.  That means that oil is not being consumed and when storage capacity runs out it should put downward pressure on oil prices.  It is interesting that prices have increased when there is so much demand destruction.  I speculate that in the shorter term that some businesses figure it is better to store it when they have the capacity to store it and prices are low relative to the recent price bubble.  [more]



Green Shoots Are Weeds

May 10, 2009 – Comments (9)

Need more be said?



Tax Revenue Down

May 09, 2009 – Comments (1)

Mish has a post on how much California's tax revenues are down.  [more]



Stress test a joke

May 08, 2009 – Comments (7)

I really had not followed the details of the stress test but Big Picture did a post on the stress test leverage, 25 to 1!!!!!  [more]



Tourism Looking Bad

May 08, 2009 – Comments (2)

CR has a post pointing out the largest decline in history of revenue per room for the hotel industry.  [more]



More on the Swine Flu

May 06, 2009 – Comments (2)

I posted earlier on the swine flu and my concerns that come because I am an educator and disease is simply spread faster through children than adults because of their behaviour, not washing hands as frequently, and simply touching everything all the time.  [more]



Bank Profits

May 05, 2009 – Comments (4)

Here is a post by Thomas Tan that outlines how banks have manipulated profits.  [more]



Hyperinflation causes

May 04, 2009 – Comments (5)

Early in this financial crisis I put myself in the deflation camp and I have stayed here, but I do keep my eye open for anything that might change that.  So far I do believe we are seeing deflation.  [more]



Bear Hat Back On

May 03, 2009 – Comments (12)

It has been a very long time since I have actively made much in the way of picks.  My expectation of the market is that it would go through a series of ups and downs and the downs would be bigger then the ups so even though there would be short periods when one can gain, like right now, ultimately I think it is still heading lower.  [more]



Retirement Caps

May 02, 2009 – Comments (1)

I am still looking at pension issues.  Obviously I am thinking they are going to play out huge in the economy.  [more]



What Are You Saving/Investing For?

May 02, 2009 – Comments (4)

It seems to me that the answer to this question for most people is for a home or retirement, and these are both areas in the economy that have become disasters.  [more]



ARMs resets good news

May 01, 2009 – Comments (0)

Mish has a post about the ARMS resets.  This is where people opted into short term mortgages at low rates and for a while were looking at huge increases in payments when their terms expired.  The current low rates means that these people are no longer looking at increases and may actually see increased debt reduction as more of their payment goes to principal.    [more]

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