() College Park, MD – Gold prices are soaring because of growing inflation fears–both the European Central Bank and the Federal Reserve seem to be on the path to permanently easy money with the Greek bailout and huge U.S. budget deficits.
Neither the reforms attached to the Greek bailout nor banking legislation in Congress get at the structural problems that caused failures in Athens and on Wall Street.
Soft reform is no reform–investors are fearful too much money will undermine the value of euro bonds and U.S. Treasuries–even if those bonds don’t outright default.
The bailout for Greece and aid for other debt ridden Mediterranean economies provides hard commitment of assistance but does not address the fundamental structural problems that cause Greece, Portugal, Spain and other less prosperous EU states to spend too much.
15 May
Posted by Mark Wood as Financial Articles
If we don’t answer the lawsuit (the complaint) then the mortgage company wins. Even if the foreclosure was bogus. Even if the foreclosure came about by fraud. If you don’t answer the lawsuit, you lose.
Many people come to see us who don’t answer and the court enters a default judgment against them. The time runs out to set aside that default judgment and then they show up at our office. There is nothing we can do.
Don’t make this mistake.
15 May
Posted by Mark Wood as Financial Articles
() Springfield, IL – There is always lots of interest in the USDA’s first projections of crop supply and consumption for the upcoming marketing year. Early season forecasts are often not very accurate due to all the unknowns surrounding future supply and consumption. Still, the first USDA forecasts establish a benchmark and many analysts recalibrate projections based on USDA analysis. Those first projections for the 2010-11 marketing year were released on May 11.
For corn, the USDA projects a record large U.S. crop in 2010, a rebound in production in China, and large crops in South America in 2011. World corn production is projected at 32.9 billion bushels, compared to 31.8 billion this year and 31.4 billion last year. The projection of a record large U.S. corn crop is based on planted acreage of 88.8 million acres, as reported in the March Prospective Plantings report, and acreage harvested for grain of 81.8 million. The harvested acreage projection is 2.2 million larger than acreage harvested in 2009. The U.S.
() College Park, MD – Americans have the economy scoped.
Polls indicate they sense the economy growing again, but many more believe the job market is getting worse than see it improving.
Over the next three years, the economy must create nearly 13 million jobs to bring unemployment down to 5 percent – still higher than pre-recession levels. That requires 360,000 jobs every month and economic growth at 5 percent a year.
After a deep recession, robust growth is possible if businesses have enough customers and capital, but President Obama’s policies don’t address the underlying causes of the Great Recession. Neither enough demand nor financing are forthcoming.
Domestic demand – consumer, business spending, etc – will accelerate to 3.5 percent a year, but much is tapped off by a rising trade deficit – Chinese imports benefiting from an undervalued yuan and pricey imported oil. Troubles in Greece and elsewhere in Europe dampen markets for U.S.
15 May
Posted by Mark Wood as Financial Articles
() New York – Crude oil futures broke through the $70 per barrel mark Monday morning as doubt over EU debt translated into lower stock prices. As a result, oil stocks fell.
Crude oil futures fell Monday with West Texas Intermediate off $1.85 per barrel, or 2.58%, at $69.76 as of 12 noon EST. The price drop followed a downturn in equities as the Dow gave up 130 basis points, or 1.23%, to trade at 10,489. Independent oil & gas producers faired even worse with their Composite off 2.72% at 888.2.
In Europe, doubt grew over the level of EU debt after Germany’s Finance Minister, Wolfgang Schaeuble, said at an EU Commission meeting in Brussels Monday that out of control deficits was “the only task that everyone has to fulfill for himself and for the common good.” That was all energy traders needed to hear.
In London, Brent Crude on the ICE Exchange lost $2.60, or 3.35%, to trade at $75.32 per barrel, while in New York, other energy sectors followed WTI prices lower.
Gasoline futures gave up 6.87 cents per gallon, or 3.22%, to trade at $2.06.
Heating oil futures lost 6.4 cents per gallon, or 3.14%, at $1.99 per gallon, breaking the $2.00 barrier.
Independent oil & gas producers saw their shares punished as well as investors looked to selloff holdings, afraid over possible earnings directions with energy prices down as they are.
Suncor Energy (NYSE: SU) lead the sector, off $1.32, or 4.26%, at $29.67. The Calgary-based independent oil company received a double-whammy from investors as Canadian energy stocks reacted to the drop in commodity market prices.
Canadian Natural Resources Ltd.