Economic Downturn hits Lenders and Borrowers Alike
Posted: March 3, 2010
By:
Bob Chapman
Commercial real estate in trouble, lenders will be hit as hard as borrowers, Greece suffers heavily during downturn, Germany wont buy any more greek sovereign debt, M3 and M4 down to nothing, China remains as largest holder of US debt. IMF comments on US dollar, debt problems in Florida and California, child labor at factories that supply Apple computers
We are not going to go into the lurid details regarding residential and commercial real estate, but we are going to give you some highlights. We began telling subscribers to sell real estate in June of 2005, long before anyone else. We picked the top just as we did in September 1988 at the top.
Residential real estate won’t hit bottom until 2013 and who knows how long it will bump along the bottom. At the end of the year we have a whole new generation of sub prime and ALT-A mortgages coming due for reset. In addition there are the pick and pay loans that are in trouble, and 52% of problems lie, if you can believe it, in prime loans. Residential real estate countrywide is off 32% with a number of areas off 50% or more. In the next two years that national figure will show losses of 45% to 50%, and the former 30 hot city markets will be off 50% to 70%. We predicted this in November of 2004. All the savings of America for three generations of Americans will be lost, and these same Americans will be saddled with horrendous amounts of debt spawned by our Wall Street controlled Treasury and the Federal Reserve. These are the bankers who have robbed you and will continue to rob you until you are destitute and enslaved.
Continues: http://www.theinternationalforecaste...orrowers_Alike
3/4/2010
In this March 3rd interview of Bob Chapman at Discount Gold and Silver Trading, he talks about inside information regarding a possible test 'bank holiday' before the year is out and that the actual number of troubled banks is over 2000, not 780 (which is an absolute lie). He starts talking more about it just under a quarter of the way into this MP3. http://libertyarchives.com/farlive/FS2_WED.MP3
China holds more U.S. debt than numbers indicate
Posted by Matt Hawes on 03/02/10 11:52 AM
From The Washington Times:
Quote:
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"The U.S. Treasury data almost certainly understate Chinese holdings of our government debt because [the U.S. figures] do not reveal the ultimate country of ownership when [debt] instruments are held through an intermediary in another jurisdiction," Simon Johnson, an economics professor at the Massachusetts Institute of Technology, told the U.S.-China Economic and Security Review Commission, a bipartisan forum established by Congress in 2000 to monitor the security implications of the U.S. economic relationship with China....
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Read the rest: http://www.campaignforliberty.com/blog.php?view=33130
China’s Hidden Debt Risks 2012 Crisis, Northwestern’s Shih Says
By Bloomberg News
March 3 (Bloomberg) -- China’s hidden borrowing may push government debt to 96 percent of gross domestic product next year, increasing the risk of a financial crisis in the world’s third-biggest economy, Professor Victor Shih said.
“The worst case is a pretty large-scale financial crisis around 2012,” said Shih, a political economist at Northwestern University in Evanston, Illinois, who spent months researching borrowing transactions by about 8,000 local-government entities. “The slowdown would last at least two years and maybe longer,” the author of the book “Factions and Finance in China” said in a phone interview March 1.
Continues: http://www.bloomberg.com/apps/news?p...d=aN94MF7BDx_A
SOURCE: http://solari.com/blog/
Lower Chinese PMI: Canary in the coalmine?
March 2, 2010
Posted by Prieur du Plessis under China, Investment
China’s PMI numbers for February were released yesterday and received surprisingly little media attention. Although I am usually not keen to slice and dice single-month statistics too intensely, the latest suite of manufacturing indices does seem to warrant more than cursory attention.
Firstly, a summary of the numbers as provided by the China Federation of Logistics & Purchasing (CFLP) and reported by the Li & Fung Group.
Continues: http://www.investmentpostcards.com/2...nt=Yahoo!+Mail
SOURCE: http://solari.com/blog/