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Blog

How to pick a safe bank

by Chris Martenson
Thursday, September 11, 2008, 9:27 AM

Okay, so you are worried that your bank may be in a spot of trouble, or maybe you just want your money in the safest bank in town.  How do you pick one?

One thing you should absolutely do is obtain a $35 report from Veribanc.com called the Blue Ribbon report.  You select the report that covers the region in which you live, and then you only consider banks on that list.   » Read more

Blog

Fannie Raises $7 Billion in Largest Single Debt Sale

by Chris Martenson
Thursday, September 11, 2008, 12:17 AM

Say, that sounds pretty favorable.  "Largest single debt sale."  And there's more good news, because they got a pretty good price - the best since June according to the article.

But wait, what's this? » Read more

Blog

Understanding the Government "Deficit"

by Chris Martenson
Wednesday, September 10, 2008, 7:47 PM

There is some confusion about what constitutes the federal deficit.  Below I explain the differences between what is reported and what is really happening.   » Read more

Blog

The Real Reason Commodities are Tumbling

by Chris Martenson
Wednesday, September 10, 2008, 5:05 PM

I happen to fully believe that our
markets are being largely influenced by official acts, both overt and
covert.  My logic is simple; where motive and opportunity co-exist, the
burden of proof shifts to the accused. 

The Central Banks and the Treasury
had a powerful set of motives to shift money away from commodity hedge
funds and into the stricken banking system.  Their opportunity is both
well characterized and self-evident, so I won't go into that here. » Read more

Blog

Washington Mutual Stock Under Heavy Assault

by Chris Martenson
Wednesday, September 10, 2008, 11:00 AM

The stock price of Washington Mutual (WM) is down another 25% this morning, at well under $3/shr.

There is no way for this company to raise capital, and therefore no way for this company to survive without a bailout. This company is toast. Time to write the obituary.


I am expecting FDIC receivership any day now, perhaps this weekend?  Who knows.  

» Read more

Blog

Uncle Sam: $407 billion in the hole

by Chris Martenson
Tuesday, September 9, 2008, 10:44 PM

NEW YORK (CNNMoney.com) -- The budget deficit will jump by $246 billion
to $407 billion this year, the Congressional Budget Office estimates in
a report released Tuesday.

"Over the long run, growing budget deficits and the resulting increases
in federal debt would lead to slower economic growth," the agency said.

» Read more
Blog

Stock Market Slides - Intervention Unsuccessful

by Chris Martenson
Tuesday, September 9, 2008, 10:17 PM

Today the S&P 500 stock index lost more
than 43 points, or 3.4%. This was a harsh repudiation of the US
government bailout of Fannie and Freddie over the weekend.

Actually, this bears a bit of explanation.
In the chart below of the S&P 500 I have marked three arrows. At
the purple arrow, I want you to note that the market was selling off
quite severely, and then, magically, at 11:00 it turned around and went
powerfully in the other direction. At the time, I watched that and
thought to myself, “Huh, somebody knows something I don’t.” » Read more

Blog

U.S. real estate hasn't hit the bottom yet

by Chris Martenson
Tuesday, September 9, 2008, 9:58 AM

The housing crisis is the symptom that resulted from the largest, most dangerous credit bubble in all of history.  While I try to locate some compassion for the government's and monetary authorities' attempts to contain the damage, I remain concerned that they are focused on the wrong issues.

I see them as treating symptoms, not the underlying disease.  While it is remotely possible that they can hold this thing together long enough that it can fix itself, this remains a long-shot. » Read more

Blog

Site upgrade complete - new look and navigation

by Chris Martenson
Tuesday, September 9, 2008, 6:45 AM

The main software for the site has been upgraded and the site is much faster than before.  Over the next few weeks, how the site looks and navigates will be changing.  I ask for your patience as I try new things out. Also, there may be a few little glitches along the way, so please let me know about them if you spot any.

I also ask you to keep those suggestions and tips coming. What would you do?  What would you change? » Read more

Blog

Fannie and Freddie Bailout News

by Chris Martenson
Monday, September 8, 2008, 4:05 PM

Fannie, Freddie and You: What It Means to the Public (Sept 7 – NYT)

So what does the federal takeover of two mortgage finance giants mean to consumers?



Mortgage rates may fall a bit initially but probably not enough to halt the decline in home prices anytime soon. Some delinquent borrowers may have a better shot at modifying their loans and ending up with lower fixed payments. And the rules on new mortgages could slightly change.



Oh, and the federal government will help pay for it all, using your tax money. » Read more