National Debt Up $2 Trillion on Obama's Watch

The latest posting from the Treasury Department shows the National Debt has increased over $2 trillion since President Obama took office.

The debt now stands at $12.6 trillion. On the day Mr. Obama took office it was $10.6 trillion.

President George W. Bush still holds the record for the most debt run up on his watch: $4.9 trillion. But it took him over four years to rack up the first two trillion dollars in debt. It has taken Mr. Obama 421 days.

But the Obama Administration routinely blames the Bush Administration for inheriting a budget surplus and turning it into years of record-breaking deficits and debt -- and then leaving it on the doorstep of the new president. (more)

Chart of the Day

Oil companies look at permanent refinery cutbacks

Some of the nation's biggest oil companies are looking at permanently reducing how much gasoline and diesel fuel they make, a move that analysts say would almost certainly trigger higher prices for drivers.

Energy companies are suffering huge losses from refining because of slumping gasoline use -- a product of the economic downturn and changing consumer habits and preferences. Energy experts say refining cutbacks have begun and will accelerate as corporations strive for profits. (more)

The bear: Dead or just sleeping?

David Rosenberg is, once again, a bear in the wilderness. He actually feels pretty good about it.

"I've been through this before," says the chief economist at Gluskin Sheff + Associates, who once again finds himself where he was a few years ago - the unpopular bearish voice in the midst of a bullish market. Stocks have gone up 60 per cent since hitting a bottom a year ago, yet that has only added to Mr. Rosenberg's conviction that the markets are running on hot air and wishful thinking.

"If you are actually in the wilderness or alone, it says quite a bit about what's probably priced into the market," he says. "I think it's overvalued. I think we're still in the midst of a post-bubble credit collapse in the world's largest economy, at a time when there are ongoing concerns about fiscal finances, particularly in Europe. And I think there are legitimate question marks over an economic recovery that has so far been predicated largely by very aggressive monetary and fiscal stimulus." (more)

Jay Taylor: Turning Hard Times Into Good Times

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Gold Supported by Geopolitical and Sovereign Risk as S&P and Moodys Warn US

Gold fell in US trading on Friday from $1,119/oz to $1,098/oz to close with a loss of 0.54% and a loss of nearly 3% for the week. Silver was again more resilient and fell less than 2% last week. Gold has range traded from $1,102/oz to $1,106/oz so far in Asian and European trading this morning. Gold is currently trading at $1,103.00/oz and in euro and GBP terms, gold is trading at €804/oz and £732/oz respectively. (more)

Junk Bonds Threaten to Crash Credit Markets

While the worry of the moment is sovereign debt default, that may soon shift to corporate debt default.

Starting in 2012, more than $700 billion in high-yield (junk) corporate debt will come due, and experts are concerned that a lot of that debt could turn sour.

Defaults and bankruptcies reportedly could be the result.

Even Moody’s Investors Service, which like the other major credit ratings agencies blessed almost any deal with a pulse as triple-A in the run-up to the financial crisis, has sounded the alarm. (more)