White Swans into Black
Thu, 5 Aug 2010
“At the start of last week, we reported on the very strong demand response from the physical market due to the drop in the gold price below $1,180. This demand has continued unabated. The gold price decline comes at a good time, especially for the Indian market but also other markets such as Turkey where price elasticity is being assisted by a very strong seasonal demand reaction”
Standard Bank, Gold Physical Flow Index, 8/3/10
“The pace and severity of financial crises has taken an ominous turn for the worse….
With one crisis seemingly begetting another, and the fuse between crises now getting shorter and shorter, the world economy is on a very treacherous course.”
Stephen Roach, Morgan Stanley, May, 2010
“Washington is not helping.
The massive permanent expansion in federal spending and regulatory oversight built into President Obama’s budget is discouraging private hiring by raising fears of higher taxes and regulation. Simply, higher taxes discourage purchases of non-essentials and high-line durable goods…
All that spending will require higher taxes, and raising taxes on families earning $250,000 simply won’t be enough finance it…
Much of the $787 Billion stimulus money was squandered on pet projects that created few jobs…
The biggest banks received more than $2 trillion in TARP and Federal Reserve assistance to clean up their balance sheets and recapitalize securities trading, while the 8000 regional banks got little assistance and remain burdened by toxic real estate loans. Consequently, more than 230 regional banks have failed, and small and medium sized businesses cannot get credit to expand.”
“Morici: Friday’s Jobs Report: Outlook Darkens for Economy, Obama”
Peter Morici, CNBC Guest Blog, 8/4/10