Filed under: California, Canada, Credit Crisis, DEBT, Economic Collapse, economic depression, Economy, forclosure, Great Depression, Greenback, housing market, Inflation, real estate, Stock Market, subprime, subprime lending, tent city, US Economy
Tent Cities in California
http://www.knbc.com/news/15600317/detail.html
Home Prices Plunge Across California
http://ap.google.com/article/ALeqM5gEw86y9UfttCi5fVcA0K4awUfqiQD8VCNPQ80
Bernanke Claims He Wants To Help Homeowners
http://news.yahoo.com/s/ap/20080..At2uvhxG9yMZ1bLJzfxuhVms0NUE
Landlords Find Deals In Housing Crisis
http://news.yahoo.com/s/nm/2..s_dc;_ylt=AhfEa6PVXIOwduYbSAlD4dOs0NUE
Filed under: Alan Greenspan, bernanke, Big Banks, Britain, California, Credit Crisis, DEBT, Department of Defense, DoD, Economic Collapse, economic depression, Economy, ethanol, Europe, european union, Federal Reserve, food prices, Great Depression, Greenback, henry paulson, House, housing market, Hugo Chavez, imf, Inflation, interest rate cuts, morgan stanley, Oppenheimer, rate cut, southern california, Stock Market, subprime, subprime lending, tax rebates, tent city, United Kingdom, US Economy, Venezuela, War On Terror, WW2
Fed Lowers Interest Rates 50 Basis Points
Bloomberg
January 30, 2008
The Federal Reserve lowered its benchmark interest rate by half a percentage point to 3 percent, the second cut in as many weeks, to prevent the U.S. economy from sinking into a recession.
“Today’s policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity,” the Federal Open Market Committee said in a statement after meeting today in Washington. “However, downside risks to growth remain.”
Morgan Stanley Strategist: Head For The Hills
Bloomberg
January 30, 2008
Barton Biggs has some offbeat advice for the rich: Insure yourself against war and disaster by buying a remote farm or ranch and stocking it with “seed, fertilizer, canned food, wine, medicine, clothes, etc.”
The “etc.” must mean guns.
“A few rounds over the approaching brigands’ heads would probably be a compelling persuader that there are easier farms to pillage,” he writes in his new book, “Wealth, War and Wisdom.”
Biggs is no paranoid survivalist. He was chief global strategist at Morgan Stanley before leaving in 2003 to form hedge fund Traxis Partners. He doesn’t lock and load until the last page of this smart look at how World War II warped share prices, gutted wealth and remains a warning to investors. His message: Listen to markets, learn from history and prepare for the worst.
Chance of recession at least 50 percent: Greenspan
Reuters
January 30, 2008
The likelihood of the economy slipping into recession is at least 50 percent, former Federal Reserve Chairman Alan Greenspan was quoted on Wednesday as saying.
“I believe the probability of a recession is at least 50 percent, but up to now there are few signs that we are already in one,” Greenspan said in an interview with weekly newspaper Die Zeit published in German. “In my opinion, it will probably happen but the facts suggest we are not there yet.”
Asked whether central bankers and financial policymakers could head off a U.S. recession, Greenspan said: “Probably not. Global economic influences today are stronger than almost anything that monetary or fiscal policy can counter them with.”
“Long-term real interest rates have significantly more influence on the core of the economy than decisions by national governments,” he added. “And central banks have increasingly lost the ability to influence these long-term rates, whereas 20 or 30 years ago they still dominated there.
“So the more important question today is in which direction long-term real interest rates are heading.”
The Fed is expected to cut interest rates again on Wednesday as part of its effort to offset the effects of a deep housing slump and credit crunch. This cut would follow a 75 basis point reduction last week to 3.5 percent and mark one of the deepest and fastest rate-cutting episodes since the early 1980s.
The U.S. economy grew at a 4.9 percent annual rate in the third quarter of 2007, but gloomy economic data this month — notably a report of weak hiring in December — suggests growth has slowed abruptly.
Southern California Shanty Town / Tent City
http://www.youtube.com/watch?v=jmeHiFZUWtE
Recent News:
U.S. slump spreading around the globe, IMF warns
http://www.theglobeandmail.com..IMF30/TPStory/Business
DOD wants $70 billion more for wars
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http://www.reuters.com/article/topNews/idUSWBT00826820080129
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http://www.reuters.com/article/ousiv/idUSN3021974120080130
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U.S. Economic Collapse News Archive
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