Comments on: Federal Reserve Statement: Is No News Supposed to be Good News?

By: strainer3

strainer3 — Wed, 25 Nov 2009 15:08:16 +0000

the other day I came across a very interesting piece on gold and the US dollar as a result of the Federal Reserve's continued attempts to debase our currency and continue to try to solve a debt crisis with more debt: Gold Price Breaks $1,180 as US Dollar Sinks here’s an excerpt: “While the Fed minutes indicate the maintenance of current dovish policy for quite some time, a positive factor for the gold price and gold mining sector, other portions of the minutes suggested that the Federal Reserve may indeed have evidence to begin to withdraw the easy monetary policies used to combat the credit crisis.”

By: TeakWoodKite

TeakWoodKite — Wed, 25 Nov 2009 07:30:32 +0000

http://www.fa-mag.com/fa-news/4754-nearly-one-fourth-of-mortgages-underwater.html

By: TeakWoodKite

TeakWoodKite — Wed, 25 Nov 2009 07:30:06 +0000

coupled with;
The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery.

Nearly 10.7 million households had negative equity in their homes in the third quarter, according to First American CoreLogic, a real-estate information company based in Santa Ana, Calif. The total number of mortgages nationwide is approximately 47.4 million.

These so-called underwater mortgages pose a roadblock to a housing recovery because the properties are more likely to fall into bank foreclosure and get dumped into an already saturated market. Economists from J.P. Morgan Chase & Co. said Monday they didn’t expect U.S. home prices to hit bottom until early 2011, citing the prospect of oversupply.

How will this death spiral unwind? In bread lines?

By: TeakWoodKite

TeakWoodKite — Wed, 25 Nov 2009 07:17:42 +0000

Today, FDIC Chair Shelia Bair released a third-quarter earnings report that showed an improvement over last quarter’s loss of $4.3 billion. The recent failure of Commerce Bank of Southwest Florida raised the total number of troubled banks to 124. The state of the financial industry has strained the FDIC, which now has a negative balance in its Deposit Insurance Fund reserves.

As you predicted LD, but what now? No more money in the pail.