Martenson Sees No Recovery

By Monty Pelerin, on January 7th, 2010

Here is a good collection of articles from Chris Martenson’s site. These articles show no green shoots, and in no way are consistent with what the government wants you to believe. There is no recovery coming. See recent post about 2010 will be worse.

Take a look at Chris’ site. Be sure to watch “The Crash Course” that he provides online. It will provide a simple and thorough explanation as to why we are here and why getting out the hole is not simple (and I would say, not possible). He also provides good information as to how you might protect yourself and your family in the free “Crash” video.

Daily Digest – January 6
Wednesday, January 6, 2010, 11:01 am, by saxplayer00o1

Contracts down: Is housing headed for double-dip?
Pump prices on pace to top 2009 high by weekend
GMAC Says Lender Will Post $5 Billion Quarterly Loss
Silicon Valley ‘Bloodbath’ Leaves Buildings Empty
Manhattan Apartment Prices Fall as Finance Jobs Lost
Fed may re-enter MBS market later in 2010
TrimTabs suggests government manipulated stocks
Medicaid Long-Term Care Spending Tops $106 Billion
Missouri revenue drops in December, more budget cuts coming
U.S. business bankruptcies rise 38% in 2009
Homelessness and cold weather have shelters at capacity
Unemployment spikes demand for Census jobs
Promise to Trim Deficit Is Growing Harder to Keep
US public pensions ‘facing $2,000bn shortfall’
Over $26 billion borrowed by states for unemployment benefits
U.S. Budget Deficit May Exceed $1 Trillion for Years, Kos Says

read more »


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January 7th, 2010 | Tags: , , , , , , , , | Category: Debt, Government, Inflation, Insolvency, consumer, crash course, credit, currency, dollar, ethics, martenson, morality, spending, taxes | Comments are closed

Simple Math Suggests No Imminent Recovery Possible

By Monty Pelerin, on October 24th, 2009

Image by Getty Images via Daylife

Here is a post from Karl Denninger. It is about Citibank and is outrageous. Apparently it is going on with other credit card issuers as well.

This is the sort of thing that, in my opinion, makes meaningful economic recovery impossible.  (Click for a larger copy)

Here’s what it says:

To continue to provide our customers with access to credit, we have had to adjust our pricing.

….

These changes include an increase in the variable APR for purchases to 29.99% and will take effect November 30, 2009.

(It then goes on to say that if you pay on time you can get 10% of your interest charges back, which lowers the effective rate by about 3%.)

I have multiple copies of this letter, all on the same theme – 30% interest rates, vastly higher than they were.

The obvious message in this letter is simple: Those who are responsible and can pay their bills will be subsidizing those who cannot – that is, you, the responsible cardholder, will pay the deadbeat’s bill!

Citibank has 92 million cards in circulation and is #4 in market share in terms of purchase volume, with 11.05% of the total.

Overall, consumers hold an average of 5.4 revolving (credit) cards.  Half of all undergraduates in college have 4 or more cards.

Average card debt per household, including households that have no cards at all, is $8,329.  For households with one or more cards, it is $10,679, both figures at the end

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October 24th, 2009 | Tags: , , , , | Category: banks, consumer, credit, denninger | Comments are closed

Numbers versus Hope

By Monty Pelerin, on October 11th, 2009

Three Government Reports Point to Fiscal Doomsday (M.W.)

Three recently released government reports now point to fiscal doomsday for America; and one of the reports, issued by the Congressional Budget Office (CBO), says so explicitly …

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October 11th, 2009 | Category: Debt, Insolvency, Treasury, banks, consumer, credit, economy | Comments are closed

The Notion of Green Shoots is Laughable!

By Monty Pelerin, on September 8th, 2009

There cannot be a recovery without the consumer. The consumer cannot increase his spending from recent years without increasing his credit load. But he is overleveraged and is in the process of correcting that, despite what the government might want him to do. Consumers seem to be more intelligent, at least in their actions, than our government. Another rapid response by Karl Denninger:

Posted by Karl Denninger in Macro Economics at 15:23

FLASH: Consumer Credit RECORD Contraction

*U.S. JULY CONSUMER CREDIT WAS FORECAST TO DROP BY $4 BILLION*U.S. JULY CREDIT

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September 8th, 2009 | Category: consumer, credit, denninger | Comments are closed
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