Here are some stories you should be reading …
#1) Nouriel Roubini says The US Financial System Is Effectively Insolvent and that …
There is, in fact, a rising risk of a global L-shaped depression that would be even worse than the current, painful U-shaped global recession.
#2) Barry Ritholtz over at the Big Picture blog takes on the job of tackling Warren Buffet (and Geithner’s cockamamie plan to boot):
The majority of people fundamentally disagree with Geithner’s plan. Many people, including myself, Paul Krugman, Nouriel Roubini, Simon Johnson (former IMF Chief Economist), Richard Shelby, Lindsay Graham, Chris Dodd, KS Fed Chief Thomas Hoenig (source), Calculated Risk, Barry Ritholtz, John McCain, Nassim Taleb, Chris Whalen, Elizabeth Warren (head of Congressional Oversight Panel), Josh Rosner, Alan Greenspan, Gordon Brown, Nancy Pelosi, Nassim Taleb, Joseph Stiglitz and Todd Harrison, believe the plan put out by Tim Geithner is FUNDAMENTALLY FLAWED. Warren Buffett is basically saying that we should shut up and do what Obama says. However this plan is, to our belief, fundamentally flawed and could bankrupt this country. This is not some trivial minority. In fact, it appears the majority OPPOSE the “private public” toxic asset purchase plan proposed by Geithner. “Private public partnership” is a euphemism for “subsidize hedge funds with low cost 9-to-1 non-recourse loans to bail out the banking system”.
#3) Stocks have lost $11 trillion in market value since the October 2007 peak, according to Marketwatch.
#4) Econbrowser flashes the “danger” flag on car sales …
Americans bought slightly more cars manufactured in North America in February than they did in January, though in a usual year we’d expect a bigger January-to-February increase. In terms of year-over-year comparisons, January car sales were down 42% from January 2008, while February was down 44% from ‘08:
Econbrowser adds:
These low levels of sales are unsustainable in terms of fundamental dynamics on both the demand and supply side. On the buyers’ side, Calculated Risk noted that current sales levels would be consistent with a constant stock of vehicles only if Americans plan to hold onto their cars for a quarter century. Even if Americans don’t want more cars– and eventually we will– there is clear potential for a very significant rebound on the demand side. It’s just a matter of when.
It’s been difficult to read a paper or watch the news recently without hearing about the growing troubles in Mexico. The US military’s Joint Forces Command issued their Joint Operating Environment 2008 report recently that listed Mexico and Pakistan as the most likely states to collapse in the immediate future
#6) China consumer prices fall for 1st time in 6 years - China’s consumer prices fell for the first time in more than six years in February, underscoring weakness in the world’s third-largest economy. Officials downplayed the risk of a debilitating deflationary spiral, but said the economic outlook was still “grim.”
Related posts:
- Thursday News Roundup The final numbers are in, and the fourth quarter saw...
- Consumers Go Down While Commodities Go Up The U.S. lost jobs in May for a fifth...
- Weaker Oil Demand? China August Car Sales Fall, First Decline in 3 Years...
- China, China, China! More on the China Stimulus Plan … $586 billion is...
- A Marshall Plan for the US … From Japan? The following poem was cut from the top of my...
{ 0 comments… add one now }