Saturday, October 3, 2009
New orders to U.S. factories fell in August by the largest amount in five months, as American manufacturers struggle to emerge from the recession.
The Commerce Department said Friday that demand for manufactured goods dropped 0.8 percent, much worse than the 0.7 percent gain that economists had expected. The August decline reflected plunging demand for commercial aircraft, a category that surged in July. (more)
“By the middle of next year we will face serious constraints,” said its president Robert Zoellick, as he launched a major campaign to persuade rich nations to pour more money into the Washington-based institution. (more)
September filings totaled 124,790, the fourth-highest month since the bankruptcy law changed in 2005.
Filings also rose 4 percent from August, even as recent reports have indicated that the U.S. housing market might be stabilizing and consumer confidence appears to be recovering. (more)
The US faces high inflation because of the weak dollar and the Federal Reserve's policy of printing money to counter the effects of the crisis, legendary investor Jim Rogers told CNBC Thursday.
Price rises in the US are already steeper than the inflation rate reported by the government, Rogers added.
"There's no question the US is vulnerable to hyperinflation down the road or certainly the inflation we saw in the 1970s, I would expect that to come back in the foreseeable future, certainly in the next few years," he said. (more)
Euro Pacific Capital head Peter Schiff predicts the Dow will fall another 90 percent from current levels when measured against gold, which he says will hit $5,000 an ounce.
Schiff credits poor policy decisions over the past nine years for setting the U.S. dollar up to take a major fall against commodities and other currencies when China and Japan finally stop buying our debt.
"Ben Bernanke is keeping his record of perfection intact of never getting anything right,” Schiff told Yahoo! Tech Ticker.
“Once again he's gotten it wrong."
"If the Fed really thought the economy was sound, why does he have it on life support? If he pulls the plug, our sick economy is going to die." (more)