Like the state of Georgia, Atlanta has an unemployment rate higher than the national average (about 10.4 percent compared to 9 percent). The real estate market, specifically the slow down of new construction is said to be the problem according to Mark Butler, the Labor Commissioner. Butler says that the recession hit just as metro [...]
Interesting article here on the problem facing South Korea. They prefer a weaker won to drive exports but if they fight inflation at home the won gets stronger.
We’ve known this currency war is coming because it has to. An economy that depends on the whole world selling to US consumers, on credit, while taking America’s jobs and industries can not be sustained. Some people are trying to keep it propped up somehow but it can’t really work out that way, can it? [...]
If a seller sells a house that they owe money on – more money than the house is worth – it is called a short sale. Since the bank is going to end up taking a loss, they need to approve the sale. Interestingly, often to buy a short sale home you have to be [...]
I brought several tens of thousands of dollars and converted them to won (to get a new apartment) about 6 months ago. The exchange rate was about 1150. Eventually that money is going back to the US and from Korean won back into greenbacks. It would be nice if the won was around 1100 or [...]
Get this sequence of logic: Bernake: The coordinated response of the central banks saved the world from a financial meltdown Bernake: Now government has to raise taxes and spend less Ok, here is reality: He, and his beleif system and many structural assumptions was a huge part of the latest financial meltdown He did not [...]
Here’s an article on corporate debt and the risk that if leveraged companies cannot get access to credit, they default on their maturing bonds and go into bankruptcy. The act of defaulting is deflationary, all other factors held constant. Fed monetizations are less than the decline in total credit outstanding for now but inflation could [...]
This article says unemployment will remain high and change America significantly: The Great Recession may be over, but this era of high joblessness is probably just beginning. Before it ends, it will likely change the life course and character of a generation of young adults. It will leave an indelible imprint on many blue-collar men. [...]
Interesting article here that predicts gold prices will slide while large gains can be made with certain currencies in Asia. They say go heavy on stocks but from developed rather than emerging markets.
It’s interesting to note that as soon as we see some bad news in Europe, the dollar gains against virtually every currency in the world. The dollar is still considered “safe” (despite the fact that holding onto dollars could have cost you big over the past couple years) because it is the currency backed by [...]