US Economy May Contract In 2010

Stiglitz Warns US Economy May Contract Next Year

 

Nobel Prize-winning economist Joseph Stiglitz warned there's a "significant" chance the U.S. economy will contract in the second half of next year, and urged the government to prepare a second stimulus package to spur job creation.

 

"The likelihood of this slowdown is very, very high," Stiglitz told reporters in Singapore. "There is a significant chance that the number will be in the negative range."

-full article

 

Home Sales Drop in November

Sales of U.S. New Homes Unexpectedly Fell in November

Purchases of new homes in the U.S. unexpectedly fell last month, indicating a recovery from the worst housing slump since the Great Depression will be slow to develop.
Purchases dropped 11 percent to an annual pace of 355,000, lower than the lowest estimate of economists surveyed by Bloomberg News, figures from the Commerce Department showed today in Washington. The median sales price decreased 1.9 percent from November 2008.
-Bloomberg

 

Victor Lloyd Smith

Millennium Lyon Asset Management

Web:      www.mlgcap.com

 

 

Bond-Markets Show Economic Recovery Is Up

Bond-market measure indicates recovery is strengthening
The yield curve, a bond-market measure of investor optimism, reached a record high Monday, indicating that investors are increasingly optimistic about the economic recovery. The previous record high was set in June. The development comes as investors shift money from government bonds to riskier assets because they anticipate growth to strengthen.
-The Wall Street Journal

 

Victor Lloyd Smith

Millennium Lyon Asset Management

Web:      www.mlgcap.com

 

 

Legacy Capital: The Driving Force of the American Dream

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Harvard Swaps Go Belly Up!

Harvard Swaps Are So Toxic Even Summers Won't Explain

 

Anne Phillips Ogilby, a bond attorney at one of Boston's oldest law firms, on Oct. 31 last year relayed an urgent message from Harvard University, her client and alma mater, to the head of a Massachusetts state agency that sells bonds. The oldest and richest academic institution in America needed help getting a loan right away.

 

As vanishing credit spurred the government-led rescue of dozens of financial institutions, Harvard was so strapped for cash that it asked Massachusetts for fast-track approval to borrow $2.5 billion. Almost $500 million was used within days to exit agreements known as interest-rate swaps that Harvard had entered to finance expansion in Allston, across the Charles River from its main campus in Cambridge, Massachusetts.

-full article

 

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All the Best

  

Victor Lloyd Smith

Millennium Lyon Asset Management

Web:      www.mlgcap.com

 

 

Legacy Capital: The Driving Force of the American Dream

Get your copy: Amazon.com, Barnes & Noble, Audio Series, e-Book  

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Banks Take Losses on Short Sales as Foreclosures Soar

Banks Take Losses on Short Sales as Foreclosures Soar

 

Banks are beginning to go along with short sales in increasing numbers, three years into a U.S. housing slump that pushed the economy into a recession and cut resale values by 30 percent from the peak in July 2006. Short sales almost tripled to 40,000 in the first six months of 2009 from the same period a year earlier.

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Victor Lloyd Smith

Millennium Lyon Asset Management

Web:      www.mlgcap.com

 

 

Legacy Capital: The Driving Force of the American Dream

Get your copy: Amazon.com, Barnes & Noble, Audio Series, e-Book  

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