I’ve been spending a lot of time on economic stuff recently, and this post is no different.
- Nicholas Von Hoffman has a good post on the subprime implosion at the Nation.
- MSN’s Jim Jubak writes about how expanding use of derivatives has increased the amount of risk in the markets, and that’s not a good thing.
- Per LATOC, Goldman Sachs is warning of more turbulence in the ‘carry trade’ as Japan stops acting as the world’s version of the National Bank of Dad (i.e. interest-free loans).
- For good measure, Kunstler chimes in as well.
- Oh, and the CEO of D.R. Horton Homes admits that 2007 is “going to suck.” Let’s file that under ‘crap we already know.’
- Stuart Saniford has another strong post at the Oil Drum talking about declining oil production in Saudi Arabia, and how it might not be voluntary.
- Ex-CIA head honcho James Woolsey is talking about oil, terrorism & global warming.
- How many people realize that we’ve doubled the money supply in the last decade? Is it any wonder that we’ve had a stock market bubble followed by a housing bubble? All of that extra money needs to go somewhere…
The US Markets are long overdue for a correction, and a 400-point drop doesn’t count. Depending on how much worse the subprime fiasco gets, we may see more fun & games in the coming weeks and months. It’s a good thing that most Americans have no idea how the financial system works, otherwise there’d be rioting in the streets over the boneheaded, short-sighted and greedy decisions made by lenders and the government.
Gas prices are on the rise locally, with one station almost hitting $2.80 per gallon for regular unleaded. This seems to be the new pattern of lower prices in the winter (more Christmas money for WalMart!) followed by rising prices as the vaunted ‘summer driving season’ (along with the 2007 hurricane season) approaches.
The housing construction market around here appears to be in a coma. The latest “Parade of Homes” is happening right now, and there is little traffic hitting the models in our area from what I can see. Unlike a few years ago, there are few spec homes being built, and the new developments have few homes surrounded by acres of weedy lots.