Search Results for: recession

Goldman Sachs buys $5.7 billion in toxic mortgages

Goldman Sachs toxic mortgages delinquent loans

Most banks hear “delinquent loans” and run, but Goldman Sachs is not most banks. The massive investment bank is greedily betting that it can squeeze value out of delinquent mortgages with a multi-billion dollar purchase of auctioned loans that have unpaid loan balances of $5.7 billion. The Wall Street Journal reports that the investment bank …

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European banks on the brink of collapse

Europe banking crisis Deutsche Bank

Top financial institutions in Europe have hardly been more vulnerable to an economic tremor, a situation worsened by the collapse of the German credit market as Berlin suddenly stopped issuing new debt. Europe’s top financial institutions are teetering on the edge of collapse as access to high quality debt products have created a liquidity …

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Federal Reserve cries wolf on interest rates yet again

Federal Reserve Janet Yellen

The Federal Reserve has once again found a convenient excuse for why they again won’t raise rates, but “may do so in December“. Time after time in recent months, they say they will raise rates in the future — most likely to give the illusion that the economy has recovered from the …

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Argentina and 10 more countries near bankruptcy

Bankruptcy

The third-largest Latin American economy Argentina failed to make scheduled payments on its government bonds at the end of July. Credit agency Moody’s Investors Service reported a spike in Argentina’s one-year Sovereign EDF (Expected Default Frequency) to 48% in one week. “Amid increasing concerns that Argentina’s default will exacerbate its …

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Greenspan: a crisis is imminent, urges a return to the gold standard

Greenspan brisis Brexit

On Friday afternoon, after the shocking Brexit referendum, while being interviewed by CNBC Alan Greenspan stunned his hosts when he said that things are about as bad as he has ever seen. “This is the worst period, I recall since I’ve been in public service. There’s nothing like it, including the crisis …

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80 richest people have more wealth than poorest 3.5 billion

Davos Switzerland

Billionaires and politicians gathering in Switzerland this week will come under pressure to tackle rising inequality after a study found that – on current trends – by next year, 1% of the world’s population will own more wealth than the other 99%. Ahead of this week’s annual meeting of the World …

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World economy is so damaged it needs permanent money printing

USD money printing dollar

Combined tightening by the United States and China has done its worst. Global liquidity is evaporating. What looked liked a gentle tap on the brakes by the two monetary superpowers has proved too much for a fragile world economy, still locked in “secular stagnation”. The latest investor survey by Bank …

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U.S. Army to be used against “Insurrectionist” Tea Party?

US army training citizens

Academic study wargames using U.S. troops to quell revolution. An academic study about the future use of the military as a peacekeeping force within the United States written by a retired Army Colonel depicts a shocking scenario in which the U.S. Army is used to restore order to a town …

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The Ups and Downs: Taking Risk When the Economy Fluctuates

The U.S. economy has always experienced some major highs and lows, and currently, is in a decent place. When the market is in the middle, meaning it could be better but it could also worse, it’s often referred to as the “Goldilocks Economy.” Certain aspects of the economy are healthy …

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Global economy at crossroads: time to hoard cash or gold?

Cash gold

From Filip Karinja, for Birch Gold Group The global economy is at a crossroads according to Mohamed El-Erian, chief economic adviser at Allianz Global Investors. The former Pacific Investment Management Company chief executive blamed central bank asset purchases (QE) for creating a distortion between the price of assets and their fundamentals. …

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Fed rate hike is the beginning of the end

Janet Yellen Interest Rates Federal Reserve

From Filip Karinja, for Birch Gold Group With the Federal Reserve set to meet next week to vote on what to do with interest rates, many are speculating that we may see a rate hike. This is something Janet Yellen has hinted at over the past few months but has kept delaying. Should …

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Argentina to default on debt; second time in 12 years

Argentina default

Argentina failed to strike a deal to avert its second default in more than 12 years after talks with holdout creditors ended without a settlement on Wednesday. The country’s economy minister, Axel Kicillof, speaking at a news conference at the Argentine consulate in New York, repeatedly referred to the holdout …

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Ron Paul: America has already gone over the fiscal cliff

Ron Paul

US President Barack Obama demanded from Congress immediate action to prevent America from falling of a so-called fiscal cliff, but Rep. Ron Paul (R-Texas) says it might be too late to keep the country afloat. Speaking with Bloomberg Television on Thursday, the lawmaker who ran against Pres. Obama during the …

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A history of the world: BRIC by BRIC

Goldman Sachs — via economist Jim O’Neill — invented the concept of a rising new bloc on the planet: BRICS (Brazil, Russia, India, China, South Africa). Some cynics couldn’t help calling it the “Bloody Ridiculous Investment Concept.” Not really. Goldman now expects the BRICS countries to account for almost 40% of global gross domestic product …

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Moody’s strips the UK of its AAA rating

Moody’s Investors Service has today downgraded the domestic- and foreign-currency government bond ratings of the United Kingdom by one notch to Aa1 from Aaa. The outlook on the ratings is now stable. The key interrelated drivers of today’s action are: 1. The continuing weakness in the UK’s medium-term growth outlook, …

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Cold War 2.0 heating up

An emerging foreign policy trend is Cold War II.  The US military/security complex, with help from Obama and Hillary Clinton, is working overtime to revive the profitable long-term stalemate of the Cold War that lasted four decades from the Berlin airlift to the Reagan-Gorbachev accord. During this long period Congress …

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