Along with the snow and cold, November brought continued declines in home values. In fact, the Zillow Home Value Index has now fallen 26% since its peak in June 2006. That’s more than the 25.9% decline in the Depression-era years between 1928 and 1933.
At a time when analysts anticipate record profits for the biggest mining companies and a third year of gains in commodity prices, shipping lines carrying raw materials are set for the lowest freight rates since 2002.
[[wysiwyg_imageupload:1159:]]By Mogambo Guru
The lights of the Mogambo Security System (MSS) glowed dimly in the gloom of the bunker as I cowered in the darkness, and there were no sounds except the thumping, thumping, thumping of my terrified heart at The World Outside (TWO), a place I consider to be a vicious, hostile environment containing not only enemies of every sort, both real and imagined, but family members who want to know if I am coming out for dinner, or to tell me that someone is on the phone for me, or that somebody is going to greedily eat the last of my treasured Double-Stuf Oreos, somehow trying to get me outside and into their clutches so that they can take all my money and ask me to sign various forms and documents.
[[wysiwyg_imageupload:1155:]]By Gonzalo Lira
The other day, in my post “The Lull Before the Storm”, I mentioned that for fiscal year 2011, the Federal Reserve would be purchasing over 60% of the Federal government deficit.
In other words, the Fed would be dancing the Monetization Waltz, just like Latin American countries used to back in the 1970’s: Proof positive that America is indeed a banana republic—only with nukes.
By Gary Tanashian
The January 2nd edition of Notes From the Rabbit Hole, NFTRH117 opened the new year with a review of a successful 2010 and a look ahead to 2011. We reviewed the precious metals, commodities and broad markets. Risk is quite high in the broad markets now, even as they pump higher this morning, as I write this intro.
[[wysiwyg_imageupload:1130:]]By John Mauldin
Long time readers of Outside the Box are familiar with the name of James Montier, who is now with GMO in their London office. Today, James, with his usual acerbic wit, takes on the notion of the "New Normal" and offers us a defense of the "Old Always." James is a value investor and sees mean reversion as still alive and kicking, where some proponents of the New Normal think we should throw out all of the old aphorisms. While I am in the New Normal camp, I also agree with James. This makes for some quick and thought-provoking reading.
From the overheating East to a troubled West, Ambrose Evans-Pritchard offers his predictions on the global economy next year.
From the overheating East to a troubled West, Ambrose Evans-Pritchard offers his predictions on the global economy next year.
[[wysiwyg_imageupload:1109:]]By Peter Schiff
The United States Postal Service announced this week that all future first class postage stamps sold will be the so-called "forever stamps" that have no face value but are guaranteed to cover the cost of mailing a first class letter, regardless of how high that cost may rise in the future. Currently these stamps are sold for 44 cents, but will increase in price if and when the Post Office hikes rates.
[[wysiwyg_imageupload:1088:]]By Brian Pretti
