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Economy - Economics USA

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Reuters

Legendary investor Warren Buffett said  unemployment could hit 11% and a second stimulus package might be needed as the economy struggles to recover from recession.

Buffett, the billionaire founder of Berkshire Hathaway, said Americans suffered "a shock to the system" from the economic difficulties in the final quarter of last year but had started to rebound.

 

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AP

The number of newly laid-off workers filing initial claims for jobless benefits last week fell to lowest level since early January, largely due to changes in the timing of auto industry layoffs.   Continuing claims, meanwhile, unexpectedly jumped to a record-high. While layoffs are slowing, unemployed workers are having a difficult time finding new jobs.

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arclein

While this is all happening, the reality of prime mortgages going under water and defaulting as a business decision is been slowly rammed home. I posted six months ago that this must not happen. The sub prime disaster has over loaded the housing market and destroyed bank capital curtailing their ability to lend. The only solution is to make that inventory disappear and abruptly shrink the market. Because it is now devaluing housing backed by prime mortgages and giving the owners a business decision.

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FFF / Jacob Hornberger

[E]veryone — employers, employees, and consumers — was benefitting, which is what a free market is all about. Then, along comes the federal government and accomplishes what it is best at: destruction, misery, and suffering.

Now, wasn’t that a wonderful result? Think about it: Here’s a company that ostensibly is privately owned. Its money supposedly belongs to it. It decides to use its own money to hire people who are willing to work there. Both the employer and the employees benefit from the exchange. We know this to be true because otherwise they wouldn’t have both entered into the deal. The company serves consumers by providing them with meat products that they’re willing to pay for.   

Like I say, destruction, misery, and suffering — it ought to be imprinted as a motto on business cards carried by federal officials.

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Bloomberg.com

July 7 (Bloomberg) -- The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small,” said Laura Tyson, an outside adviser to President Barack Obama.

The current plan “will have a positive effect, but the real economy is a sicker patient,” Tyson said in a speech in Singapore today. The package will have a more pronounced impact in the third and fourth quarters, she added, stressing that she was speaking for herself and not the administration.

Tyson’s comments contrast with remarks made two days ago by Vice President Joe Biden and fellow Obama adviser Austan Goolsbee, who said it was premature to discuss crafting another stimulus because the current measures have yet to fully take effect. The government is facing criticism that the first package was rolled out too slowly and failed to stop unemployment from soaring to the highest in almost 26 years.

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Reuters

Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills.

Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter as more cardholders relied on plastic to meet day-to-day expenses, the American Bankers Association said.

 

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Gary North for LewRockwell.com

Global warming is based 100% on junk science. The most vocal promoters are not interested in the details of physical science. They are interested in two things: political control over the general public and the establishment of international socialism.

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Jim Rogers for LewRockwell.com

The dollar and U.S. Treasuries are both likely to slide as soaring government debt in the world’s biggest economy undermines confidence in its assets, according to Jim Rogers, chairman of Rogers Holdings.

“The government is printing lots of money and borrowing even more; that’s not the basis for a sound currency,” he said in a telephone interview today from Singapore. “The idea that anybody would lend money to the U.S. government for 30 years at 3 or 4 or 5 or 6 percent interest is mind-boggling to me.”

 

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