[California's] A2 rating is just five notches above speculative status and Moody's raised the potential for the rating to tumble toward "junk" status if lawmakers fail to quickly produce a budget for Governor Arnold Schwarzenegger to sign.
Excluding public sector borrowing (by the Treasury, government agencies, states, and municipalities), private sector credit was reduced at a mindboggling pace of $1,851.2 billion per year!
The data for Q1 — yes, it is both old and lagging — is still stunning nonetheless: 74% of the states showed a drop in Personal Income.
In a false bottom of one of their suitcases, Italian customs officers and ministry of finance police discovered a staggering $134bn in US Treasury bills. Italian and US secret services working together concluded the bills were most probably counterfeit, the latest handiwork of the Mafia.
Chief executives of some banks that received federal money, including Bank of America Corp, Morgan Stanley and Regions Financial Corp, used company jets for their personal use. Many occasions when banks receiving federal money flew their planes to destinations near resorts or executives' vacation homes in Europe, Mexico, the Caribbean, south Florida and Aspen,
Michigan again reported the highest jobless rate, 14.1 percent in May. The states with the next highest rates were Oregon, 12.4 percent; Rhode Island and South Carolina, 12.1 percent each; California, 11.5 percent; Nevada, 11.3 percent...
Given that the proportion of recipients who used up their jobless benefits topped a monstrous 49 percent, the continuing claims number going forward will be essentially meaningless.
What would happen if the O'man came on the news and stated that each state in the United States would be entered into a lottery for government grants for new business. Each state would receive one billion dollars, each grant would be oneRead Letter
Credit ratings agency Standard & Poor's said it is unlikely to lower its rating on the U.S. government in the near-term despite noting a "significant" weakening in public finances. S&P said in a report it will retain its top triple A rating for the U.S.'s long term debt and added that the outlook is stable. Last month, rival credit ratings agency Moody's Investors Service said the U.S. government's "AAA" rating is stable despite the country's swelling debt.
NYSE said it had signed a deal with Depository Trust & Clearing Corp to form a joint venture for clearing U.S. fixed income derivatives.
The new clearing house, New York Portfolio Clearing, will combine the NYSE Euronext's U.S. futures exchange and DTCC's Fixed Income Clearing Corp to offer risk management, clearing and settlement efficiencies for U.S. fixed income securities and derivatives.
Here’s yet another huge financial story that has been virtually blacked out by the US financial media. Although on the surface, this story appears to be a non-event, if we consider some of the released facts about this case, you will understand why I consider it to be a huge story. On June 8th, the Asia News reported the following story:
“Italy’s financial police (Guardia italiana di Finanza) has seized US bonds worth US 134.5 billion from two Japanese nationals at Chiasso (40 km from Milan) on the border between Italy and Switzerland. They include 249 US Federal Reserve bonds worth US$ 500 million each, plus ten Kennedy bonds and other US government securities worth a billion dollars each. Italian authorities have not yet determined whether they are real or fake, but if they are real the attempt to take them into Switzerland would be the largest financial smuggling operation in history; if they are fake, the matter would be even more mind-boggling becaus
"It's really not going to make any difference because the Greatest Depression is underway. They know that this is not going to be solved by printing more money, phantom money out of thin air." Gerald Celente
Arizona's collections were down a whopping 54.9% depending 25.3% on Personal Income Taxes. South Carolina, Michigan, Vermont, Rhode Island, New Jersey, Idaho, and Ohio are also in deep trouble.
Arizona is in the grip of a depression.
"How do you want people to spend more if they don't have a job, borrow more, and tell the banks to lend more but have less leverage. Try to explain to me how this administration can get away with this nonsense." Nassim Taleb
State income-tax revenue fell 26% in the first four months of 2009 compared to the same period last year, according to a survey of states by the nonprofit Nelson A. Rockefeller Institute of Government.
But, you can buy food with it.
The actions reflect our belief that operating conditions for the industry will become less favorable than they were in the past, characterized by greater volatility in financial markets during credit cycles...
Ron Griess of The Chart Store takes a close look at SPX profitability and comes away unimpressed:
The two authors sum up starkly: “Globally we are tracking or doing even worse than the Great Depression ... This is a Depression-sized event.”
Schiff Report Video Blog June 15th 2009
Housing expert and MIT Professor Robert Shiller was equally pessimistic, saying, with regards to the four-year housing downturn: "This thing is not over yet."
The rate of capacity utilization for total industry declined further in May to 68.3 percent, a level 12.6 percentage points below its average for 1972-2008.