Here are 7 things worth reading …
#1) The News N Economics blog has a good piece on how some countries Europe – Estonia, the United Kingdom and Lithuania are cutting wages.
From News N Economics: “every country across the 26 countries listed except Belgium, Germany, Greece, and Spain, saw the rate of hourly wage growth decrease since 2008.”
The problem with choosing deflation as a path is that existing debts become insurmountable. The risk of a sovereign debt default goes up. So if they don’t get spending under control by cutting wages, they feed inflation, if they get spending under control, they may be doomed to default anyway.
The real problem may be that there are no good answers. And you think that can’t happen here? Illargi tells us that in San Francisco and Toledo, mayors say they’ll fire all their civil servants. And rehire (some of) them at lower salaries and perks.
Is this the right solution? Feel free to give me your thoughts in comments.
#2) Obama wimps out again; maybe Stephen Colbert can loan him a set of balls.
#3) Jesse has the crisis in Iceland pegged, and offers his excellent analysis. It’s well worth reading. Go read Ilargi’s take on the situation over at the Automatic Earth as well. I read both blogs every day.
#4) After one of the strongest bull runs of all time, investors still hate U.S. stocks. The Wall Street Journal may fret about this, but I believe that U.S. investors are wising up and realizing large parts of the market are a rigged game. That doesn’t mean you can’t make money, though. You just have to put your money where there are incentives to be more honest. Things like dividends (a company can’t lie about them) and global demand and supply of commodities. We are facing hard times, but you can still make money. That’s the theme of my new service, Crisis Profit Hunter.
#5) Hat-tip to Naked Capitalism for a link to this story in the New York Times, “Trading Away Productivity.” It’s another must-read.
#6) By the way, a shout-out to Yves Smith of Naked Capitalism for her new book, “ECONned: How Unenlighted Self Interest Undermined Democracy and Corrupted Capitalism”. The book looks at how economists in key policy positions placed doctrine over common sense, ignoring the deteriorating conditions and rising dangers that led America off an economic cliff. So put that on your reading list, too. Smith is an excellent writer and sharp thinker.
#7) Speaking of books, my book, “The Ultimate Suburban Survivalist Guide,” which briefly soared as high as #22 on Amazon’s general book sales list, #15 on Amazon’s hot new books list, and #1 on both the Personal Finance and Investing lists, is now slipping back. Is the party over? Am I destined for the remainders bin? Oh, bitter cup of doom indeed. Or, YOU could go buy a copy. The reviews are generally excellent. Or maybe buy it for your neighbor, so when the next emergency comes, at least HE’s prepared and can maybe save your butt.
Related Posts
- Is The Market Hungry for Risk? (05/04/09)
- Morning Plate of Doom — And Oil Heats Up (03/09/09)
- Debt Wars: The Bankers Strike Back! (02/03/10)
- Update on Energy, Water, Food, Climate, Debt and More (01/22/10)
- Holy Dollar Doom, Batman! Moody Says US Risks Losing AAA Debt Rating! (10/22/09)
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