Global Economy Bursting?

[Randolph Kinney]

Treasury yields slump below 2%

http://www.marketwatch.com/story/treasury-yields-head-back-toward-record-lows-2011-08-18

 

[Randolph Kinney]

U.S. increases oversight of Europe banks' U.S. subsidiaries units

http://www.marketwatch.com/story/us-lifts-oversight-of-europe-banks-units-wsj-2011-08-18

 

[Randolph Kinney]

Gold rises $28 to finish at record $1,822 an ounce

http://www.marketwatch.com/story/gold-ends-at-record-1822-an-ounce-2011-08-18?siteid=bnbh

 

[Terrel L. Shields]

My ex threw her wedding ring at me...thanks... CHACHING...

 

[Restrain]

The Fed admits loaning money to the European banks, including the Swiss National Bank to keep them solvent this week. At the same time, European investors are dumping European bonds and buying US debt. Then the DOW drops 416 today on European jitters.

Looks like the Euro is approaching a collapse, sooner than later.

 

[Randolph Kinney]

Gold futures continue meteoric rise at $1,881 an ounce

http://www.marketwatch.com/story/gold-futures-buoyed-by-safe-haven-appeal-2011-08-19?siteid=bnbh

 

[Randolph Kinney]

The upcoming expansion of US bank credit

http://www.financeandeconomics.org/Articles archive/2011.08.17 Bank Credit Repo.htm

To the Keynesian mind the obvious alternative must be to expand bank credit, particularly when there is an accumulation of non-borrowed reserves sitting on the Fed’s balance sheet. The NBRs represent the excess capital owned by the commercial banks, which have not been drawn down for use as the capital base for the expansion of bank credit. They currently stand at about $1.76 trillion while in normal circumstances NBRs would be no more than a few tens of billions. High levels of NBRs reflect the reluctance of banks to lend and bankable borrowers to borrow: they are symptomatic of an economy that refuses to expand.

Theoretically, that $1.76 trillion of NBRs could fund nine times that amount of government debt, or more than doubling it to $30 trillion. The point is that the successful development of the repo market in this way is an obvious and more powerful solution than extending quantitative easing.

 

[Terrel L. Shields]

I wonder what an 18 K class ring would cost now...

 

[Randolph Kinney]

Eric Janszen on “The Next Ten Years; There Will Be Blood”


http://www.netcastdaily.com/broadcast/fsn2011-0817-1.mp3

It's about a 30 minute audio but well worth the listening to it. Understanding is more important than knowledge itself and the wisdom to make application of knowledge is more important yet.

Hang onto your hiney, the U.S. is about to take a big fall.

 

[Dee Dee]

No surprise here:

MOODY’S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts, Corruption, And Greed
http://finance.yahoo.com/blogs/dail...GUERhaWx5VGlja2VyQmxvZwRzbGsDbW9vZHlzZm9ybWVy