WSJ.com Alert: S&P downgrades Spain to ‘AA’ with a negative outlook, saying the country is likely to have an extended period of subdued economic growth. Markets react: DJIA plummets from +23 to –22 in seconds after S&P drops Spain’s debt rating. And the sovereign debt nightmare is only beginning. The UK is next. But the… [Read more…]
April 27, 2010
As I waited to appear on Larry Kudlow’s show last Friday, I heard Larry announce over and over again that he’s sick of hearing about Greece’s problems. Greece isn’t America. The U.S. economy is booming, and Greece can’t hurt it. I didn’t tell Larry, but I think he was wrong. Greece’s problems will hurt the… [Read more…]
March 31, 2009
The mounting government debt–$2.98 trillion in recent bailouts and stimuli alone–is an oppressive anchor around the neck of every American. Currently, every family of 3 is obliged to pay over $118,000 in the next 30 years. That’s a house payment with a variable-rate. In other words, the government has done exactly what helped cause the… [Read more…]
March 14, 2009
*Originally posted February 15, 2009* I know this is a little late, but I was waiting for Congress to spend another trillion dollars or so before committing my prediction to the public. Here goes: GDP and unemployment will flatten and even improve a bit in first half of 2009 for a couple of reasons: First,… [Read more…]
January 18, 2009
The debtor is a slave to his lender. Americans hold hundreds of billions of dollars in credit card debt alone. To this add automobiles, student loans, mortgages, medical, and myriad personal loans and you arrive at the staggering figure of $2.55 trillion with a ‘t’. This massive debt–encouraged and backed by the US Government–makes… [Read more…]
January 8, 2009
For months I’ve been echoing the warnings of Peter Schiff and others: when China stops buying American debt, we’re in deep, deep trouble. The possibility for hyperflation, prices rise by double-digits on daily or weekly measures, becomes palpably high. Even though this article from IHT failed to suprised me, I have a sick, frightened gnawing… [Read more…]
April 28, 2010
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