Truer Words Were Never Said Better

Materialism has not provided what we needed. As our current crisis deepens, luxury cars and Rolex watches will seem so phony. Childish symbols like yellow rubber wristbands and yellow, pink, and rainbow ribbon stickers on our SUVs do nothing to change the world. When you are walking down the street, look people in the eye and say hello rather than staring at your feet or checking your latest email or text message on your “crackberry”. Deeper personal relationships with family and friends will become crucial. The thieves and crooks occupy Washington DC and Wall Street. We do not need what they are selling. Economy sized dreams of hope will sustain the citizens of this great country. Instead of accumulating stuff, give your stuff to people who need it. Donate your stuff to Purple Heart, the Salvation Army, or any other worthy charity. Donate your time to Manna, Habitat for Humanity, or any other worthy cause. Don’t delegate your role in caring for your fellow citizens to the government. Americans will soon realize that what they wanted was not what they needed.

James Quinn, What's My Payment

A Change in Lifestyle of the United States

Consider the following 2 articles:

Meltdown gives consumers a new money mindset:

In ways big and small , from scrutinizing their bills and joining credit unions to scaling back weddings and college plans , people are finding creative ways to deal with the worst recession in a generation. In short, there's a quiet revolution taking place in the way people save, borrow and spend that represents a retreat from old habits, and the first steps toward new ones.

The changing behavior can be seen in other ways:

, Two years ago, the average amount spent on a wedding was $28,000, according to the Wedding Report, a market research company in Tucson, Ariz. Last year's average: $21,800. The second quarter of this year: $16,550 , 42 percent below the 2007 average.

, While enrollment numbers aren't yet available, public colleges reported a 14 percent spike in applications last spring, suggesting some students and their families are shifting from private schools so they can spend less.

Census: Recession had sweeping impact on US life

The homeownership rate fell to 66.6 percent last year, the lowest in six years, after hitting a peak of 67.3 percent in 2006. Residents in crowded housing jumped to 1.1 percent, the highest since 2004, a sign people were "doubling up" with relatives or friends to save money.

_ The share of people who carpooled to work rose to 10.7 percent, up from 10.4 percent in the previous year. Commuters who took public transportation increased to 5 percent, the highest in six years, with Washington, D.C., at the top.

Roughly half the states showed declines in the number of immigrants from 2007 to 2008. Major metro areas also posted decreases, including Los Angeles, Phoenix, Detroit and Tampa, Fla. An influx of workers from India, who came looking for specialized jobs in telecommunications, manufacturing, computers and software, partially offset the national immigration decrease.

Trade Wars between China & US?

Definitely NOT a good thing when one debtor (the US) starts up a trade war with their enabler (China).

China lashed a U.S. decision to impose duties on Chinese-made tires, calling them flagrant
protectionism that sent the wrong signal before the next G20 summit and risked a "chain reaction" that could slow global recovery."China strongly condemns this grave act of trade protectionism by the U.S.," the spokesman for China's Ministry of Commerce, Yao Jian, said in a statement issued on the Ministry website on Saturday.

Random Musings & Clicks

6 Things I Think:

1) Gold is at an all time high (not inflation adjusted). Gold as a precious metal/hard asset is one of the 5 branches of investment everyone should own. However, now may not be the best time to buy into the market. I fear that if gold goes past 1040/ounce, you'll see the general public run into gold pushing it to 1200+, which means you should sell, as whenver the masses enter the market, the smart money leaves.

2) The tax credit for home purchases is running close to the end (November 30 is the closing date for those to qualify). There is a fear out there that this will either be extended & increased (causing buyers to not want to buy right now) or not renew (causing fools to overpay). It balances each other out. More concerning is the FHA running out of money to be at their reserve requirement.

3) Eviction patrols overloaded with foreclosures. Nuff said.

4) Wells Fargo Executive Parties in Foreclosed Home. Wow, another nuff said.

5) Russian leader demands curbs on alcohol purchases. Yeahhhh, sure. Telling Russians not to drink is like telling a stoner not to smoke it up.

6) Harvard & Yale the big losers in investing. Just goes to show you that an Ivy League education doesn't mean shit....all it gets you is connections & networking. With the advent of social networking, this may make Ivy's a little more obsolete.

What's going on in this country

It's been a while since I've been a guest poster on this blog. Thanks to my dear friend to keep it going. Things have been crazy lately. I am in the process of trying to close what was once a thriving prosperous business. I guess truly it wasn't all that thriving since it was all smoke and mirrors because of much money out there, due to the ridiculous loose lending practices of the recent boom. It is ironic that the ones who created this mess we are in are bailed out by the same corrupt government that encouraged it, and quite possibly forced it. All the while they are getting sweet mortgage deals from the orange man. If there is a hell, Chris Dodd, Pelosi and all the other "put money in my pocket" congressman will have to answer for their sins. Our government has put themselves before the people. They are public servants.

The UnderWear Indicator...

Briefly, ahem...men's underwear sales typically are a good indicator of the economy. When sales are short and tight, the economy tends to cling down. When sales are riding high, the economy tends to perk up.

Sales of men's underwear typically are stable because they rank as a necessity. But during times of severe financial strain, men will try to stretch the time between buying new pairs, causing underwear sales to dip.

"It's a prolonged purchase," said Marshal Cohen, senior analyst with the consumer research firm NPD Group. "It's like trying to drive your car an extra 10,000 miles."

The growth in sales of men's underwear began to slow last year as the recession took hold, according to Mintel, another research firm. This year, Mintel expects sales to fall 2.3 percent, the first drop since the company started collecting data in 2003.

But the men's underwear index may also have a silver lining. Mintel predicts that next year, men's underwear sales will fall by 0.5 percent, and as with many economic indicators, a slowing of a decline can be welcomed as a step in the right direction. Retailers are reporting encouraging signs in the men's underwear department

A Dickens Tale: 2 Economies, 1 Country

Seems like everyone is in a Charles Dickens mood this weekend, as many posts on blogs and financial websites are about 2 economies emerging: Marketwatch mentions about how the manufacturing sector is recovering, but the labor market is not.

Mike Shedlock's terrific Global Economics blog makes a great notation about how 2 types of companies have fared well during the credit bubble: Those who stayed away from debt to hoard cash, and those who just relied on bailouts. Companies that were in the middle that did not either have full cash or relied on taxpayer funds have done the worst.

But there's nothing more symbolic of a market approaching a top than when you start reading stories of people abandoning buy and hold strategies for a heavy trading strategy focusing on risky stocks with so-so fundamentals.

The 50-year-old from Naples, Fla., had limited investment knowledge but attended several seminars before starting to trade in May. So far, York said, she's up an average of 40% a month and is trading full time."It's the best job I've ever had, not just for the enjoyment but from the compensation standpoint," said York, who previously sold telecom equipment. "I've replaced a significant six-figure income."

Bear market rally? New Bull Market? bounce?

Let's see...Gold has been relatively flat this year. Stocks are up 53% since the President told ya to buy stocks. The dollar is down. Oil is sorta up depending on what time frame you look at. Natural Gas is low. Real estate in some aspects is making a comeback. So where are we exactly?

We are in a place where lies permeate and are given credence and truth is shied upon. This is what a bear market rally looks like. And like many astute market observers predicted, it can last a long while. Eventually the truth does come out, but usually after the market makers have sucked the general public in (see tech stocks, housing, and maybe green stocks next).

Preparing for the Worst? Or Expecting the Best?

Looks like Robert Kiyosaki, of Rich Dad Poor Dad fame, thinks the big mess is no where near the end. Interesting article full of good points, some of which I agree with.

Consumer Confidence Index says the opposite..that the majority of people think things are getting better.

Short run, I think things are looking up...long run, I'm thinking Kiyosaki's ideas are more likely to pan out.

Banks in trouble all around

The media has done a pretty good job of keeping quiet about it, but we are close to another banking crisis...eerily close. The FDIC is running out of money. Now there is strong news floating out that Guaranty Bank and its 14 billion in assets is about to come to a close.

The good news is that anyone wanting to know possibly which banks may be in trouble can look at this list generated by Calculated Risk (unofficial list)

http://www.calculatedriskblog.com/2009/08/problem-bank-list-unofficial-aug-14.html

TARP Money for apartment complexes?

The bill, which is called the TARP for Main Street Act and was sponsored by House Financial Services Committee Chairman Barney Frank (D-Mass.) and Rep.Velasquez (D-Brooklyn and Manhattan), would use TARP funds that have been returned by banks and plow it into programs that, according to the bill, would create "sustainable financing" for the complexes as well as provide funding for property rehabilitation.

No Food in Detroit= Armed Grocery Deliveries! Is Detroit the Next Farmland?

There isn't a single major chain supermarket in the city, forcing residents to buy food from corner stores. Often less healthy and more expensive food.

As the area's economy worsens --unemployment was over 16% in July -- food stamp applications and pantry visits have surged.

Detroiters have responded to this crisis. Huge amounts of vacant land has led to a resurgence in urban farming. Volunteers at local food pantries have also increased.

But the food crunch is intensifying, and spreading to people not used to dealing with hunger. As middle class workers lose their jobs, the same folks that used to donate to soup kitchens and pantries have become their fastest growing set of recipients.

Life in the Recession...401Ks going, mansions not selling, and recessions finishing

Life in the Recession
Insightful piece by Michelle Singletary of the Washington Post. With more and more employers opting out of matching employee contributions, the 401K may have a limited shelf life as an investment vehicle for people. Another casualty of the recession?

Recession is also hurting the sales of mansions, as more and more of them are going on the auction block with auction companies setting up straw buyers to prevent embarrassment for the sellers.

Then there are guys like Dennis Gartman, who is a sage pundit who is saying the recession ended last month.

Others say "Beware the Bear"

Free Cash for old stuff (non-clunker cars!)

Looks like there are a few non Federal programs that let you trade in junk for cash/rebates like the Cash For Clunker programs, as well as several free stuff being given out. Here's a sampling..click the links:

Radio Shack Trade-In Program: Trade your old electronic devices for a gift card
Cash For Refrigerators- Several states are implementing this program
Freebies- Free Food, Free Crest WhiteStrips, etc
Another list of Freebies
A no-penalty Certificate of Deposit...doesn't cost you anything if you at some point need the money and want to close the account or take some out.

Finally, a list of all the places that offer you free money for opening an account, becoming a member, switching credit card accounts, etc.

Why Hot Waitresses Are A Bad Economic Sign

As a person who enjoys eating out, I have noticed, as I am sure many of you all have, that the quality of service in restaurants is getting better and the wait staff are getting more attractive.

The hotter the waitresses, the weaker the economy. In flush times, there is a robust market for hotness. Selling everything from condos to premium vodka is enhanced by proximity to pretty young people (of both sexes) who get paid for providing this service. That leaves more-punishing work, like waiting tables, to those with less striking genetic gifts. But not anymore.
A Soho restaurateur I know recently received applications from “a couple of classic Eastern European fembots. Once upon a time, these ladies must’ve made $1,500 a night lap dancing. At my place, they’re not going to make that in a week.”

The Gubmint's latest plan to rid of us debt

U.S. Government Stages Fake Coup To Wipe Out National Debt

Crap for Clunkers

Looks like nobody knows how to spend like the good ole gubbamint, eh? How do you manage to lose $1 billion dollars in the span of 4 days? Easy, promise everyone a program that has no need and you'll find out that within a WEEK, you need an additional 2 billion dollar injection to save a program.

And these are the same morons who want to run our health care? The same morons who say they will be able to keep health care spending under control? Here's a better reading of keeping health care that people will like...and it involves MINIMAL involvement of the liberals in government.

Otherwise what you'll get is a new kind of clunker program...one in which the government considers your parents and grandparents to be clunkers to be traded in rather than allowed to live a full life.

"Economy Matters" starring Barack Urkel?

Welcome to economic hell

I truly respect Karl Denninger as an economist. He thinks we are in for a Japan type recession only worse. He predicts a rebound in the market before the crash. Could this be what we are experiencing here? Read the article. It's good stuff.