02/05/10 Baltimore, Maryland – The bust in the economy ain’t so bad either. Credit default swap spreads are widening. Bond yields are rising…especially in Europe.
The service sector in the US is performing below expectations.
Oh…and listen to this:
“More weigh walking away from mortgages,” says The New York Times. As anticipated, people are warming up to the idea of stiffing their mortgage lenders. Why not? Millions of houses are underwater; let the mortgage company deal with them.
Delinquent mortgage payments have risen to over 10%.
The Baltic Dry Index is dropping, too.
And Dr. Copper is ‘set for catastrophe,’ says a copper expert.
Copper, you’ll recall, is the metal with a Ph.D. in economics. It’s the metal that you find in home wiring, refrigerators, offices, automobiles, cell phones – just about everything. So, when the price of copper goes down it means something. Usually, it means business is slowing down.
Copper has fallen more than 10% in 2010. It will probably go down a lot further. Chinese companies stockpiled the metal last year, causing its price to double. Now, they’ve got more than enough.
And if the world economy is still slowing down, which is what the Baltic Dry Index is probably telling us, you can expect the price of copper to collapse.
Stay tuned.
Bill Bonner
Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning. Dice Have No Memory: Big Bets & Bad Economics from Paris to the Pampas, the newest book from Bill Bonner, is the definitive compendium of Bill’s daily reckonings from more than a decade: 1999-2010.
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Lost of posts today yet you forgot to mention that unemployment was way better than thought at 9.7%. Yes, the tide has turned. Job loss is abating.
About 80% of the S&P companies reporting had great, not good, but great earnings. All the economic news from GDP to today’s upbeat employment number have been vastly improving.
This growth is real and sustainable. To argue in the face of that is nothing short of foolishness. We had our dip. Now it’s time to grab some cheap shares.
Job loss was revised UPWARD for the total depression to 8.4 million job losses.
The 9.7% unemployment is a lie and will be “revised” upward next month just like the announcements have been for the last 14 months.
Who are these Wall Street idiots who believe the initial figures?
Did you get in on that short-covering rally today Harry?
Don’t worry the ECB won’t do jack Sh!#–because they can’t!
If by “cheap shares” you mean silver philharmonics, then yes! Don’t mind if I do take advantage of the strong dollar while it lasts. At least my bullion will be worth something when your ‘recovery’ is proven as real as the Y2K bug.
Ha ha ha har har ha!
Job report is a fake, How is possible that US lost 20000 jobs and it´s jobless rate is less than 9.7 per cent, ¡it´s a nonsense!!
Why is it every time a great economic news release hits you doomers call it a “lie” or “fake” or whatever? Take your conspiracy theories into the bomb shelter while we continue living and thriving in a recovering economy.
You aren’t worth the time Harry. Go buy yourself some dicounted stock. Make sure it doesn’t pay a dividend and trades at least 40 times earnings. Find one Jim Kramer recommends.
I am wanting to buy some gold bullion coins to put away for future wealth preservaton. Can anybody recommend who they use to buy gold coins? There are a lot of places on the net that advertise, but I want to use a reputable company. I am wanting to put away about $1,000 per month in gold coins.
Mr. Bonner…. I took my tax info to my CPA today and he told me an interesting story about our 1 trillion plus deficits. He had just attended a tax seminar where they stated that if politicians do nothing, the budget will be balanced by 2012. How? Let the Bush tax cuts expire and 2 things will happen. First, 1 trillion extra tax will be collected annually when the higher income tax rate reverts back. Secondly, another 1 trillion will be collected annually when the AMT exemptions expire increasing the people affected from 5 million people to 25 million people. If true, this means a balanced budget in time for the 2012 presidential elections. Are we in for a “do nothing” government again?
Jan Glenn… Casa Ensueno, Nicaragua
Because it is a f*^^king lie you moron. EVERY single jobs, GDP, and budget release by the government is the “REVISED” three weeks later!
Lie? Well, was WMD a lie? Because the principle is the same. I’ll leave the semantics up to the moron who thinks unemployment a9.7% (even if it were true) is a good thing.
I swear I’m going to track who you really are.
Apmex sells gold, etc. I sometimes buy bullion on ebay.
Now that you are done laughing-remember this: Signing up for a bing.com cashback account saves you 8% on every paypal purchase on ebay.
Sometimes you find great deals. But in a nod to the free market, some ebay sellers have caught on and already adjusted their prices up 8% or more.
Also Palladium and Platinum are insanely overpriced in real life (because they’re used in real goods AND THERE IS NO RECOVERY) and even worse on ebay.
Newsflash and question for Ms. CNBC: Why does the BDI go from 4600 in December to 2700 now?
I always thought people shipped lots of goods to each other during economic booms.
Maybe they’re emailing new cars and and cheap crap from China and tools and dies to each other…
I’ve used apmex.com in the past and was satisfied with them (please, please don’t ban me for shilling!) I’ve also done business with Gainseville Coins (google ‘em) and AJPM and have been treated fairly by each.
Oh, Daniel, somebody has to take the other side of the trades we’re making…
God I love that Harry. He confirms my suspicions about the majority of the American people.
The US 150 year second fractal nonlinear colapse….
Dec 19, 2009
Matching Monthly Copper and Nikkei Quantum Lammert Fractals: The Global Commodity and Equity Second Fractal Devolution Pathway
The baltic dry index is falling. What I am watching for if this is a seasonal occurrence or the beginning of something more fundamental. Even if the employment numbers are factual, they are a lagging indicator. Taking a rear view mirror look, takes your sights away from the hazards on the road ahead.
Where can I load up on these cheap shares? Time to “back up the truck”, eh Harry? This is gonna be grate [sic], you ‘n me gettin’ rich together. Whoooo! It’s like the bargain basement. I love all this great news in the economy. Unemployment’s below 10%! Alright!
I think I’m going to run out and tell all my unemployed and underemployed friends how freakin’ great the economy is doing.
But first, a comment on the precious metals:
Why not visit a few local dealers, get a feel? Some are shysters but I’ve found that the local guys are great. You go in, cash in hand, you support your local economy and you get your items the same day.
APMEX screws up sometimes… in fact I can think of about 5-6 orders where they’ve botched.
There’s a joint… Southland (google them) and they’re very nice. No problems there.
CNI (California Numismatics).. I think it’s “golddealer.com” or .net is reputable and honest. Good joint.
I know people that have ordered from Kitco… thumbs down.
There’s an old grouch in La Jolla, CA named Leon Cronkwright… and man is he a grouch! But he’s honest and very competitive. He will hold orders until you’re ready to take your order (and save on shipping). 100% honest.
About ebay…. a lot of people have success. I wouldn’t risk the stress of getting (or not getting) my order.
Do your homework and add in your ounces over time. Look for some bargains. At this point the low-hanging fruit has been picked so look for opportunities to get in on the cheap and strike then.