Wednesday, September 30, 2009
In the latest sign the Social Security ticking time bomb is almost ready to explode, an unexpected spike in the number of early retirement claims will cause the entitlement program to run a deficit as early as 2010, nearly a decade ahead of earlier projections.
The system has suffered not only a 23% increase in early retirement applications, but the severe recession has resulted in the loss of 6.9 million jobs. In this negative feedback loop, older employees lose their jobs and thus stop paying into the system while applying for early retirement benefits when they are unable to secure a new job. (more)
This week we have not one, but three trading videos to watch. Each video will offer insights into three of the most important markets in the world.
The first video is on gold and where this market is headed by the end of the year:
Watch here: http://broadcast.ino.com/education/goldcycle921/
The second is about crude oil and where we will see this market heading:
Watch here: http://broadcast.ino.com/education/straightline/
Lastly, a different look at the S&P 500 that you won't want to miss:
Watch here: http://broadcast.ino.com/education/sp500twoforces/
The S&P/Case-Shiller home-price index rose 1.2 percent in July from the prior month, the biggest gain since October 2005, the group said today in New York. Another report showed consumer confidence unexpectedly fell in September, while holding above the record low reached earlier this year.
Home values are rebounding as low borrowing costs and government tax credits lift home sales. Combined with rising stock prices, the gains will begin to restore the $13 trillion plunge in net worth caused by the worst financial crisis since the Great Depression, a process that economists such as Brian Bethune say will take years to complete. (more)
The information has come to light as a result of a declassified Memorandum sent by then-Federal Reserve Chairman Arthur Burns to President Gerald Ford. The document was originally classified as "Strictly Confidential".
The document was originally posted at ZeroHedge and brought to my attention by Lori Smith. I have since verified the authenticity of the document in a conversation with the Gerald R. Ford Library archivist Mark Fischer. Although the document appears to have a declassification date stamped on it of 6-28-05, Fischer tells me that the document was declassified just recently on 9-15-09. (more)
The latest glimmer of hope came Tuesday when Gannett Co., the largest U.S. newspaper publisher, announced that its third-quarter earnings will be substantially above analysts' forecasts.
Although Gannett's revenue for the period, which ended Sunday, fell slightly below analysts' projections, executives said newspaper advertising sales didn't fall as badly as they did in the first and second quarters.
That's not saying much. Gannett's ad revenue from USA Today and its other print publications dived 33 percent during the first half of the year. (more)