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Daily Digest - Dec 7

Sunday, December 7, 2008, 10:56 AM

Foreclosures soar to record 1.35 million,  unemployment in the Great Depression, minimum pricing battle, job creation by administration, and more bailouts.

Economy

Foreclosures soar 76% to record 1.35 million

That's a 76% increase from a year ago, according to the group's National Delinquency Survey.

At the same time, the number of homeowners falling behind on their mortgages rose to a record 6.99%, up from 5.59% a year ago, the association said.

This means that one in 10 borrowers in America are either delinquent or in foreclosure.

Great Depression Unemployment Didn't Hit 25 Percent Overnight

First, unemployment stats are calculated differently now. If we calculated unemployment the same way we did in the Depression, our unemployment rate would be much higher.

(Chart) Unemployment Rate vs Broader Total Unemployed

Discounters, Monitors Face Battle on Minimum Pricing

PHOENIX -- A group of major discounters, including eBay Inc. and Costco Wholesale Corp., is expected Thursday to call for new laws blocking manufacturers from setting minimum prices on everything from flat-screen TVs to power drills. That move could ratchet up a battle between retailers and a little-known but powerful industry that's taken off in just the past year.

Tiny firms like NetEnforcers Inc. -- with only 56 staffers jammed into a dim, spare cubicle farm here in Arizona -- wield economic power far beyond their size. These companies scour hundreds of thousands of Web sites daily, looking for retailers offering bargains below the "minimum advertised price," or MAP, set by manufacturers on an array of consumer goods.

Job Creation by Recent Presidents (Chart)

More"Bail"outs

Dec. 6 (Bloomberg) -- Democrats in Congress reached an agreement in principle with the Bush administration on providing funds to prevent a collapse of General Motors Corp. and Chrysler LLC, a congressional aide said.

 

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2 Comments

jrf29's picture
jrf29
Status: Gold Member (Offline)
Joined: Apr 18 2008
Posts: 453
Re: Daily Digest - Dec 7

Great Depression Unemployment Didn't Hit 25 Percent Overnight  

It is interesting to see such a story in the mainstream media.  People seem to be catching on to the reality of what is happening.

The above article also links directly to another article:

"Go Ahead, Fools, Keep Buying Treasuries" by Jim Grant http://clusterstock.alleyinsider.com/2008/12/jim-grant-go-ahead-fools-keep-buying-treasuries

 Nothing there that ChrisMartenson readers don't already know.  My point is that the rapidity of the penetration of such thinking into the mainstream consciousness, even if it is not generally accepted, is surprizing to me.  Six months ago, such articles as the ones above would have been completely off the radar screen, and considered to be paranoid lunacy unworthy of serious comment.  But not today.  This gives me confidence—if not in the future of our economy, at least in our collective intelligence.  If I were a betting person, I would surely have bet that the entire body of mainstream media and public thought would still been living in a self-perpetuated fantasy, eyes keenly peeled, searching for the imminent stock market "bottom."

 I think that PeakProsperity.com has actually contributed significantly to this wider understanding.  Below are a series of graphs from Google Trends, showing how many times the term "Chris Martenson" (in blue) was searched for, in relation to various other search terms (in red).

Economic recession [red]; Chris Martenson [blue] :

 

Trade deficit [red] ; Chris Martenson [blue] :

 

Hyperinflation [red]; Chris Martenson [blue]:

 

 

Fiat currency [red]; Chris Martenson [blue] :

 

Reserve currency [red]; Chris Martenson [blue] :

The above chart, for example, shows that now slightly more people are searching for the words "Chris Martenson" on the internet as are searching for the words "reserve currency."

 If this is not compelling evidence that the message of this website has reached many hundreds of thousands of people, and at least a great many of those who are otherwise reading about the topics which Chris addresses, than I don't know what would be.  Below is a comparison of "reserve currency" and "Chris Martenson" with "fabric softener," a relatively stable search term, over a longer time period.

 "Fabric softener" [yellow], "reserve currency" [blue], "Chris Martenson" [green], "US recession" [red]:

 

Clearly, the message of Chris Martenson has entered the popular psyche, and will almost certainly have an effect on the thinking of people all over the world.

 The real challenge facing us is illustrated by the graph below.  Note that only one search term is even visible on the chart.  No explanation necessary:

"US recession" [blue], "Paris Hilton" [red]

 

capesurvivor's picture
capesurvivor
Status: Platinum Member (Offline)
Joined: Sep 12 2008
Posts: 963
Re: Daily Digest - Dec 7

Someone who is on the ball economically is Peter Schiff. This is an amazing video; I can't believe he kept his cool. 

 

SG

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