As there are many positives to a weaker [US Dollar] ahead that would be a great relief to both the Fed and Obama administration, the USD may end up being the sacrificial lamb to help reflate once more our economy and stock market. … [1] Yesterday I was reading Chris Puplava’s article at [1] and as you can see from the above letters-of-fire it does give some possible insight into whether the foreign central banks’ treasuries holdings may be peaking; however, … What really has us excited at Doom Castle is his second chart (go to the original for a…
Read more…

If Deutsche Bank analysts are correct, nearly half of all mortgage holders will end up underwater: [Hat tip CPGone!] Aug. 5 (Bloomberg) — Almost half of U.S. homeowners with a mortgage are likely to owe more than their properties are worth before the housing recession ends, Deutsche Bank AG said. The percentage of “underwater” loans may rise to 48 percent, or 25 million homes, as prices drop through the first quarter of 2011, Karen Weaver and Ying Shen, analysts in New York at Deutsche Bank, wrote in a report today. As of March 31, the share of homes mortgaged for…
Read more…

Yesterday a CNN article said: In many markets, if you want to buy a repossessed property, you better come with your best offer first — and fast. That may be true for homes in the lower price brackets, but rarely for homes in the upper price brackets. The article got me to wondering  what the most expensive foreclosure property currently was in the Phoenix area and I came up with this- 6629 E. Meadowlark Lane, Paradise Valley.  [MLS #4183460] It is currently listed for $4.25 million, but was listed for $6.5 million. [It is actually tied for first place.] The…
Read more…

  The national debt has been wiped out by the U.S. government- and The Onion: U.S. Government Stages Fake Coup To Wipe Out National Debt  

According to the Associated Press yesterday, it looks like foreclosures are starting to "stabilize": Even as Americans suffer rising unemployment, foreclosure rates in three states hit hardest by the housing bust — California, Arizona and Florida — stabilized in June, offering hope that the worst of the real estate crisis is over, according to The Associated Press’ monthly analysis of economic stress in more than 3,100 U.S. counties. Karl Denninger however has a different take.  Here’s what he says of foreclosures: [Thanks M!] You know full well that essentially every bank in the nation, including the largest ones that went…
Read more…

Goldman Sachs C.E.O. Lloyd Blankfein is telling his employees to keep a low profile. The New York Post reported [2] that the chairman has warned staff to avoid making expensive, high-profile purchases as the firm weathers a firestorm of public and political anger over outsize bonus payments. [1] Thank Heavens for the NY Post’s Mark DeCambre, Reuters’ Matt Goldstein [3], Asia Times’ Julian Delasantellis [4] and a few other intrepid souls who are keeping this file open as public pension monies, hospital endowment funds, tax revenues and plain vanilla retail investments drain quietly, a fraction of a cent at a…
Read more…

John M. Berry, a guest columnist for Reuters last Wednesday, outlined why he believes that Ben Bernanke should be reappointed as chairman of the Federal Reserve: A failure to reappoint Bernanke would only embolden the small-minded members of Congress who don’t like what the Bernanke Fed has done, or the $700 billion TARP, or this year’s stimulus bill. Those critics, like Senator Richard Shelby of Alabama, the ranking Republican on the Senate Banking Committee, seem not to understand how much worse financial markets and the economy would be if all those actions hadn’t been taken. One has to wonder though,…
Read more…

It’s lonely at the top- or in this case, or anywhere else in this building, for that matter:  [Thanks L!] FORT MYERS, Fla. – The Vangelakos’ southwest Florida condominium has marble floors, a large pool overlooking a river and modern furnishings that speak of affluence and luxury. What they don’t have in the 32-story building is a single neighbor. The New Jersey family of five purchased their unit four years ago, when Fort Myers was in the midst of a housing boom and any hints of an impending financial crisis were buried in lofty dreams of expansion and development. They…
Read more…

The MSM makes it sound so simple- home prices have dropped, so it’s a great time for buyers to rush in: For Aaron Carter, a musician who was struggling to fit a drum set, a piano and three guitars into his 600-square-foot apartment in Phoenix, the math on owning a home finally began to work in his favor. Rent for the apartment he shared with his wife: $615. Mortgage payment for a home with twice the space: $760. And the interest on a mortgage is tax-deductible. So they jumped at the chance to buy some elbow room. "We figured that…
Read more…