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Bloomberg reports that housing values are set to decline another $1.7 Trillion in 2011. This is on top of the already realized losses of $9 Trillion. This year’s estimated decline, more than the $1.05 trillion drop in 2009, brings the loss since the June 2006 home-price peak to $9 trillion, the Seattle-based company said today in a statement. The drop in home values . . . → Read More: Housing declines still not at bottom Measured in 2009 dollars, total wages fell to just above $5.9 trillion, down $215 billion from the previous year. Compared with 2007, when the economy peaked, total wages were down $313 billion or 5 percent in real terms. The number of Americans with any wages in 2009 fell by more than 4.5 million compared with the previous year. Because the population grew by about 1 percent, the number of idle hands and minds grew by 6 million. This means a real under- and unemployment rate of more than 22 percent. . . . → Read More: What’s happened to wages? President Obama has twisted the arms of the Senate Republicans so much that they are going to give him exactly what they want: extension of the Bush tax cuts for two years. Ezra Klein at the Wall Street Journal reported on Mark Zandi‘s thoughts: I also asked him about the Bush tax cuts. His own figures say they’re a horrible deal on stimulus . . . → Read More: Taxcut haircut James K. Galbraith reset the discourse on the Catfood Commission in June. Most of the meetings were secret. Secrecy breeds the suspicion that the discussions are at a level of discourse they are embarrassing. A bipartisan commission should approach its task in a judicious, open-minded and dispassionate way. The attitude and temperament of the leadership are critical. The leader of a commission intended to sway the public cannot display contempt for the public. Senator Simpson has plainly shown that he lacked the temperament to do a fair and impartial job from the abusive response he made to Social Security Works. With just one economist on board they denied access to the professional arguments surrounding this highly controversial issue. It is impossible to have a fair discussion of any important question when the professional participants in that discussion have been picked, in advance, to represent a single point of view. The Commission was supported by Peter G. Peterson, who has for decades conducted a relentless campaign to cut Social Security and Medicare. This act must be condemned. A Commission serving public purpose cannot accept funds or other help from a private party with a strong interest in the outcome of that Commission’s work. Having done so is a disgrace. . . . → Read More: The Catfood Commission called out In a case in Pennsylvania the judge in a foreclosure found the the bank and the lawyers ‘had not been honest with the court.” Bank of America/Countrywide used lawyers who did not supervise non-lawyers or read the documents it submitted to the court. It also did not send letters unilaterally changing the home owners mortgage to her or to the bankruptcy court handling her affairs. And when they later tried to foreclose manufactured letters purporting to be notifications of the modifications after the fact. . . . → Read More: Foreclosuregate: Bank and lawyers lie to a court in Pennsylvania and get caught As we postulated, the IRS continues to aid the US trade imbalance by motivating investors to flee American stocks and bonds. Today Sarasin Bank announced, as covered by Le Temps Geneva (in French – my translation) that it had written its customers that it is suspending all trading in American companies equities, in addition is counsels its customers to do the same (!) . . . → Read More: Bank Sarasin (Geneva) shorts America U.S. expatriations in the Second Quarter of 2010 at highest level since 1997. For those who live overseas, this comes as no big surprise. The U.S. Government during the last two years has unleashed some of the most harsh, expensive and legally dangerous new rules and regulations for overseas Americans in the private sector that we have ever seen, and from recent articles in the press, it would appear that some of the leaders of the forthcoming 112th Congress have plans to make things even worse next year. No other major trading nation in the world has ever treated its private sector overseas citizens as badly as the United States does today. And it is hardly a coincidence that the United States has today the world’s largest and most chronic trade deficit too, currently accumulating at a rate in excess of $1 billion per day. . . . → Read More: American Empire: your citizens are bailing This is a refreshing, and chilling little video making the rounds this week. The fact that the cute anime doglets are so affect constrained is part of its charm. I liked at about 4:50 where this exchange takes place: Girl: Is this an episode of the Twilight Zone? Guy: I don’t think so. Girl: Are you Sure? . . . → Read More: Ben Bernank and the Goldman Sacks One must wonder if banks have totally escaped the possibility of being regulated by states. I was pondering the current Irish problem, the amount owed to banks outside of Ireland shows the immense set of dominos that could fall in Europe. A sovereign default would not have as great an impact, as a risk-flaring contagion impacting countries’ primary financial entities, whose assets account in some cases for multiples of host GDP. It seems to me that the regulators of the banks are in some ways more influential than the Ministers of Finance. They potentially have sway over multiples of GDP assets. But can they avoid ‘capture’ by the mentality of the banks and provide regulation that can contain risk? . . . → Read More: Can banks be regulated by nation-states? Julie Cresweill in Dealbook has a report on the sales of troubled assets. It is the biggest rummage sale in Wall Street history — what one investment company calls “the Great Liquidation.” Two years after Washington rescued Wall Street, hundreds of billions of dollars of bad investments — in many cases, the same ones that poisoned banks and then the economy — are . . . → Read More: The Great Liquidation begins: some will profit nicely and it won’t be you |
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