http://zerohedge.blogspot.com/2009/05/guest-post-good-bad-and-gdp.html
Despite the worldwide decrease in petroleum products due to economic collapse, oil prices are rising. Hint: Supply and demand isn't always tamper-proof.
Friday, May 29, 2009
Thursday, May 28, 2009
Wednesday, May 27, 2009
Tuesday, May 26, 2009
Monday, May 25, 2009
Sunday, May 24, 2009
Friday, May 15, 2009
Thursday, May 14, 2009
Chrysler
Above is a map from Zero Hedgewhich shows a dot on the map for every Chrysler dealership which was eliminated today as a result of the Chrysler bankruptcy. Keep in mind that there will likely be more Chrysler dealers eliminated- this represents about one-third of all Chrysler dealerships. GM is expected to do the same, except GM has twice as many dealerships as Chrysler.
Think about how this makes it much more difficult for the economy to recover from the current crisis. Auto dealers are often the largest source of sales tax revenue for small communities. They are also large commercial real estate tenants. This is only the beginning.
Saturday, May 9, 2009
Unemployment
Here is a map of unemployment rates in the U.S., by state.
Now look at the maps, by county:
California
Florida
Iowa
Kansas
Nebraska
Alaska
Texas
Washington state
It makes you stop and think when you can see the unemployment by county.
Now think about the unemployed people in each of those counties who own homes.
Then think about the banks who do most of the mortgage lending in those counties.
The recent "stress tests" for banks was based on the most 'adverse' scenario being 8.9% unemployment in 2009, and 10.3% unemployment in 2010. Here we are in May of 2009, and we've already reached 8.9% unemployment nationally- but in some areas, the rate is over 20%.
As you can see by looking at the county-by-county unemployment charts, banks in some regions of the country will be affected far more severely than others. This might partially explain why Warren Buffett is so sure that Wells Fargo is in a better position than other big banks to survive the current economic crisis.
The government stress-tested 19 big banks, and said that 10 of the banks needed to raise %75 Billion by June 8, based on possible unemployment rates of 10.3% next year. What about the banks in areas with much higher unemployment? Which banks are more exposed to the higher rates of localized unemployment? Plus, The Wall Street Journal explains how the big banks got the government to bend the rules of the 'stress tests' to their advantage before the results came out.
Now look at the maps, by county:
California
Florida
Iowa
Kansas
Nebraska
Alaska
Texas
Washington state
It makes you stop and think when you can see the unemployment by county.
Now think about the unemployed people in each of those counties who own homes.
Then think about the banks who do most of the mortgage lending in those counties.
The recent "stress tests" for banks was based on the most 'adverse' scenario being 8.9% unemployment in 2009, and 10.3% unemployment in 2010. Here we are in May of 2009, and we've already reached 8.9% unemployment nationally- but in some areas, the rate is over 20%.
As you can see by looking at the county-by-county unemployment charts, banks in some regions of the country will be affected far more severely than others. This might partially explain why Warren Buffett is so sure that Wells Fargo is in a better position than other big banks to survive the current economic crisis.
The government stress-tested 19 big banks, and said that 10 of the banks needed to raise %75 Billion by June 8, based on possible unemployment rates of 10.3% next year. What about the banks in areas with much higher unemployment? Which banks are more exposed to the higher rates of localized unemployment? Plus, The Wall Street Journal explains how the big banks got the government to bend the rules of the 'stress tests' to their advantage before the results came out.
Thursday, May 7, 2009
Wednesday, May 6, 2009
Tuesday, May 5, 2009
Monday, May 4, 2009
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