April 2009 World economic and property articles

[HIDDEN]

In the temporary absence of CA, I will get this thread started, as some are already getting depressed by not being able to cheer themselves up reading these very informative articles

Is it time to sell your coppers?

http://www.moneyweek.com/investments/commodities/why-the-base-metal-rally-wont-last-14707.aspx

So this is why we are all flocking to live in Malaysia

http://newsvote.bbc.co.uk/2/hi/business/7980848.stm

How to convert a measly dollar into a trillion dollars!!

http://newsvote.bbc.co.uk/2/hi/business/7980848.stm

Value Of High-end Properties May Stabilise Next Year

http://www.bernama.com/bernama/v3/news_business.php?id=401657

[HIDDEN]

hi,

I don't have any articles to post, however the G20 has now "solved the current financial crisis" by further tightening tax-havens (including Malaysia), and by giving more cash to the IMF whose approach seems to be to keep bankrupt countries miserable for longer (they won't bankrupt themselves again after this). And the G20 has generally had a nice PR photo-opp in docklands.

And, of course, the hedge funds will get regulated (job opportunities for civil servants), and the bankers will get less bonuses and more taxes ... but not the banks' company directors who comprise mainly ex-politicians.

Same old stuff. I'm gonna have a sleepy, cynical-free, weekend.

regards, Scott

[HIDDEN]

If the G20 chappies had turned up in Protons I would have been impressed

Bob

[HIDDEN]

Anyone read " Felix Dennis: How to Get Rich" ?   I havn't yet, that's why I'm still  poor.

http://www.dailywealth.com/

[HIDDEN]

hi,

I read the "Rich Dad, Poor Dad" book by Robert Kawasaki (?). All about buying property low and selling high. As if we didn't know that one. The way to get rich is to write a "way to get rich" book.

Alternatively, be happy with enough to live on, and live in a country, like Malaysia, where you've got more than most and there's no one named Jones to keep up with. Result, happiness.

Here's an interesting article, US centred but pretty globally applicable : What if Housing Never Bounces Back

regards, Scott

[HIDDEN]

WSJ: From Bubble to Depression
It appears that both the Great Depression and the current crisis had their origins in excessive consumer debt -- especially mortgage debt -- that was transmitted into the financial sector during a sharp downturn. It appears that we're witnessing the second great consumer debt crash, the end of a massive consumption binge
http://online.wsj.com/article/SB123897612802791281.html

Financemarkets.co.uk: RICS warns against premature optimism on house prices
"The Royal Institution of Chartered Surveyors (RICS) has warned that it would be ‘premature’ to assume that house prices are on the road to recovery after figures from the Halifax house price index showed an average house price decrease of 1.9% during the month of March." When RICS start turning bearish, is that a sign that our stance is joining the mainstream?
http://www.financemarkets.co.uk/2009/04/06/rics-warns-against-premature-optimism-on-house-prices/

Timesonline: Toxic debts could reach $4 trillion, IMF to warn
Toxic debts racked up by banks and insurers could spiral to $4 trillion (£2.7 trillion), new forecasts from the International Monetary Fund (IMF) are set to suggest. The IMF said in January that it expected the deterioration in US-originated assets to reach $2.2 trillion by the end of next year, but it is understood to be looking at raising that to $3.1 trillion in its next assessment of the global economy, due to be published on April 21. In addition, it is likely to boost that total by $900 billion for toxic assets originated in Europe and Asia
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6047929.ece

FT: Why this will not be a normal cyclical recovery
The implications for US policy include a likely second round of stimulus, much more federal capital for the banking system and stunning budget deficits. Households felt wealthier, despite pressure on incomes, because home and financial asset values were rising. Now that wealth effect has reversed with a vengeance. Funds from the Troubled Asset Relief Program are only replacing lost capital, not increasing it. When might they end? With key categories of toxic assets still losing value, the answer is: not soon. The scale of lending needed to support a normal cyclical recovery will not materialise. Despite public opposition, substantially more federal capital will be required for banks
http://www.ft.com/cms/s/3d89a930-220d-11de-8380-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F3d89a930-220d-11de-8380-00144feabdc0.html%3Fnclick_check%3D1&_i_referer=http%3A%2F%2Fwww.housepricecrash.co.uk%2Fnewsblog%2F%3Fshow%3Dweek&nclick_check=1

FT: House price falls add to eurozone’s woes
There's not much in this article we didn't know (i.e. prices are tanking in UK, Ireland, Portugal, Spain etc) but the really interesting bit is the last sentence: "According to the ECB report, “busts” that follow housing price booms in the main eurozone economies typically last five years." So we're in for the laong haul.
http://www.ft.com/cms/s/0/d15aa2bc-21fa-11de-8380-00144feabdc0.html

[HIDDEN]

Forbes: The American Suburb Is Bouncing Back
The vast flatlands sprawling east of Los Angeles, consisting of roughly 3 million people, have suffered one of the highest rates of foreclosures and surges in unemployment in the nation. Yet now sales are picking up and inventories are finally beginning to drop. Even developers of new properties report a strong uptick in sales. In new developments in the Inland Empire, Brookfield Homes reports sales volumes up 150% since six months ago.
http://www.forbes.com/2009/04/06/suburbs-inner-cities-housing-mortgages-kotkin-opinions-columnists-california.html

The Daily Telegraph: ECB attacks G20 plan to pump cash into global economy
"This is helicopter money for the globe," said Jürgen Stark, the ECB's chief economist and Germany's member on the bank's executive board. "There hasn't been a study to see whether the world needs additional liquidity. In the old days one would take a long time to to explore such a thing."
http://www.telegraph.co.uk/finance/financetopics/recession/5119671/ECB-attacks-G20-plans-to-use-IMF-to-pump-cash-into-global-economy.html

CNN: GM preparing for bankruptcy
"We're talking about what could be the largest industrial company to ever go bankrupt. The preparations better be intense and earnest," the source said. "The preparations are being made because there's a short time frame here."
http://money.cnn.com/2009/04/07/news/companies/gm_bankruptcy_preparation/index.htm?postversion=2009040712

Finfacts: Asking prices for Irish houses fell 4.2% in the first three months of 2009
A further fall of 4.2% in Irish house prices since the begining of the year. In Dublin city centre - the epicentre of the "Celtic Tiger" prices are down a whopping 11% in 3 months.....and the crash started in Ireland about 12 months earlier then GB
http://www.finfacts.ie/irishfinancenews/article_1016384.shtml

Ft: UK Manufacturing decline worst in 40 years
on another note why should the car manufacturers get a bailout when they have huge stocks of overpriced cars??
http://www.ft.com/cms/s/1634e798-2355-11de-996a-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F1634e798-2355-11de-996a-00144feabdc0.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fuk

BBC: RBS to cut a further 9,000 jobs
The Royal Bank of Scotland is to shed a further 9,000 jobs, half of them in the UK. BBC Scotland understands the losses are to be in its back office operations
http://news.bbc.co.uk/2/hi/uk_news/scotland/7987659.stm

[HIDDEN]

Market Oracle: Crude Oil $200, the Price for Wasting Financial Crisis Opportunity
Matt Simmons, the brilliant energy analyst and author of Twilight in the Desert , recently told Reuters, "We are three, six, maybe nine months away from a price shock. We are not talking about three to five years away -- it will be much sooner. These prices now are dangerously low. The lower prices fall, the less oil will be produced and the greater the chance of an oil spike."
http://www.marketoracle.co.uk/Article9913.html

FT: Housing market not expected to recover this year
The majority of Britons do not expect to see any recovery in the housing market this year, according to new research by Unbiased.co.uk. The study found that 58 per cent of people do not expect to see any recovery in house prices this year, while 18 per cent do not see any prospect of an upturn until at least 2011. This situation is exacerbated by the fact that while 28 per cent of people are currently interested in buying a property, a quarter of these are holding off looking at prospective properties in the belief that prices have further to fall.A further one in four are holding off buying to save up a bigger deposit, with this figure rising to almost one in five (18 per cent) of those aged between 18 and 34.Even more worrying for sellers, is that 50 per cent of people feel they would
http://www.ftadviser.com/FTAdviser/Mortgages/News/article/20090408/fa87e470-238e-11de-a0fe-00144f2af8e8/Housing-market-not-expected-to-recover-this-year.jsp

FT Alphaville: Fixing the gilt market
Article pointing out that the costs of borrowing are about to rise as the government pushes up the yield through excess borrowing
http://ftalphaville.ft.com/blog/2009/04/06/54516/fixing-the-gilt-market/

Yahoo: Russia banking crisis just beginning: top banker
Russia's banking crisis has only just begun and the government has been slow to react, the head of its largest bank said Wednesday, contradicting optimistic comments by Prime Minister Vladimir Putin. The blunt comments by Sberbank chief executive German Gref, who also said bad loans in Russia were increasing by 20 percent a month, came just two days after Putin said the threat to the banking system had receded.
http://uk.biz.yahoo.com/08042009/323/russia-banking-crisis-beginning-top-banker.html

Times: HSBC drops interest on low-deposit mortgages
Further signs of revival in the mortgage market emerged yesterday when HSBC unveiled competitive deals for borrowers with small deposits. Britain's biggest bank announced fixed-rate home loans available for up to 90 per cent of a property's value with rates starting at 4.99 per cent. The next best-buy rate for borrowers with a 10 per cent deposit is from Yorkshire Bank, at 5.99 per cent.
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6062804.ece

Times Online: Bank of England Governor Mervyn King weighs case for forcing banks to split their operations
The Bank of England is examining whether Britain's biggest banks should formally separate their investment banking and retail banking operations, The Times has learnt. News that such a move is under discussion at such a high level will send fresh shudders through the UK banking sector, still reeling from the fallout of toxic debt and the credit crunch. George Osborne, the Shadow Chancellor, hinted yesterday that a Conservative Government would break up Britain's nationalised banks and would also consider whether to block other lenders from becoming too big.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6062889.ece

Australia Jobless Rate Jumps Most in 18 Years as Recession Hits
Australia’s unemployment rate jumped by the most in 18 years in March, adding to signs the nation is in its first recession in almost two decades.
http://www.bloomberg.com/apps/news?pid=20601080&sid=a29jjElS3Ibg&refer=asia

New Zealand's House Sales Rise to 16-Month High as Interest Rates Reduced
New Zealand home sales rose to a 16- month high in March, adding to signs that falling interest rates and prices are helping the property market recover.
http://www.bloomberg.com/apps/news?pid=20601081&sid=aWqIyv1O8Ke8&refer=australia

Euro Falls on Concern German Report Will Show Recession Deepens
The euro fell against the yen and the dollar on speculation a German report will show the recession in Europe’s largest economy is deepening, backing the case for the region’s central bank to cut interest rates.
http://www.bloomberg.com/apps/news?pid=20601110&sid=a_IHOIUveuEI

[HIDDEN]

Citywire: UK House prices may only have another 8% to fall
Ben Read, managing economist at the Centre for Economics and Business Research, says we may see house prices "likely to bottom out by the start of 2010." My question: is that nominal or inflation adjusted?
http://www.citywire.co.uk/professional/-/news/other/content.aspx?ID=336360

Mish via Market Oracle: Rampant Signs of Economic Deflation as Consumer Spending Contracts
Nice article reporting on art sales falling, empty seats at restuarants, boats too costly to keep littering coastlines, and shoppers looking for lower-cost own-brand products. Forget Peak Oil this is Peak Credit and Peak Earnings.
http://www.marketoracle.co.uk/Article9948.html

BBC NEWS: New cars 'cheaper than used ones
'Slightly off-topic Replace Parkers with Haliwide, change cars to houses and it's the same VI spin
http://news.bbc.co.uk/2/hi/business/7990464.stm

BBC News: Buffett loses top credit rating
Has the old sage lost his touch? Not so long ago he was saying, "US equities have never been so cheap", or something along those lines, and buying in. But goes to show that even the best pundits can't keep getting it right forever.
http://news.bbc.co.uk/2/hi/business/7991419.stm

Mortgagestrategy: UK Average house price slumps to 2006 level
House prices in England and Wales fell by 0.9% in March, taking them back to March 2006 levels, shows the latest data from Acadametrics. This represents the thirteenth consecutive monthly price fall, with prices now 13.4% lower than a year ago. All ten regions in England and Wales are showing prices falling on an annual basis and the same is true on a monthly basis apart from Wales.
http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=184288&d=403&h=401&f=402&nl=MS_BN&dep=webops&dte=090409

Dollar Rises, Heads for Weekly Gain, on Speculation U.S. Economy Improving
The dollar rose against the euro, heading for the biggest weekly gain in three months, on optimism the worst of the crisis is over in the world’s largest economy
http://www.bloomberg.com/apps/news?pid=20601085&sid=asAdxqV8IiNo&refer=europe

[HIDDEN]

Guardian: View from the street - what UK estate agents are saying
"The market has more or less reached the bottom, so a lot of people are moving up the market if they have got good jobs and their mortgage is going down. HSBC have introduced their 90% mortgage- that will help, finding the 10% is ok, parents will help," "It is picking up, people would prefer to put their money in to property rather than a bank." "People who sold to rent 18 months ago are now coming back in to the market, the public realise this is a good time to buy a house. The most important thing is getting your hands on a mortgage, if you can do that then you can buy a house." "First-time buyers seem to be coming out again now. They are being helped with 10-20% deposits by their parents as they can see now is a good time to buy." "Prices have reduced as low as they are going to."
http://www.guardian.co.uk/business/2009/apr/15/what-estate-agents-say

Guardian: £240bn final-salary pension deficit threatens to swamp lifeboat
The Pension Protection Fund has become a financial and political timebomb and the deficit is already "significantly greater than the quantitative easing package" and "on a par with the level of support being put together for the banking system". Well at least there is nothing safer than bricks'n'mortar; it's me pension innit!
http://www.guardian.co.uk/business/2009/apr/14/final-salary-pensions-shortfall

MarketWatch: Poland asks for $20.5 billion credit line from IMF
Dominique Strauss-Kahn, the IMF's managing director, welcomed Poland's announcement. "I am very pleased by this positive response from Poland to the invitation I extended to strongly performing economies to use this new instrument to bolster international confidence," he said in a statement.
http://www.marketwatch.com/news/story/Poland-asks-205-billion-credit/story.aspx?guid={094E007F-6404-4070-9DC2-8A4AF1A1D6D9}&dist=hplatest

BBC: UK Mortgage lending 'rises slightly'
The number of mortgages handed out by lenders rose slightly in February but activity in the market remains weak, according to a lenders' group. Loans for house purchases in February in the UK rose to 24,300, up by 4% compared with January, the Council of Mortgage Lenders (CML) said. But the group warned that activity in the market remained at a "very low level historically".
http://news.bbc.co.uk/2/hi/business/7997782.stm

Nouriel Roubini's Global EconoMonitor: According to press reports the IMF may allegedly be increasing its estimate of global bank losses to $4 trillion, a figure consistent with estimates by a variety of independent bank analysts
The RGE Monitor has been suggesting for a while that "total loan losses by US based financial companies could peak at about $3.6 trillion. Essentially, it suggests that the United States' banking system if virtually bankrupt. The IMF is now also catching up and suggesting a figure $4 trillion. It now looks like the G20's $1 trillion injection will be a drop in the bucket. Hold onto your hats - it's not looking pretty at all.
http://www.rgemonitor.com/roubini-monitor/256364/according_to_press_reports_the_imf_may_allegedly_be_increasing_its_estimate_of_global_bank_losses_to_4_trillion_a_figure_consistent_with_estimates_by_a_variety_of_independent_bank_analysts

Few Australians Facing Negative Equity in Home Loans, Reserve Bank Says
Few Australian home borrowers face “negative equity” if property prices fall because tighter lending standards and tax rules encourage households to repay debt faster than other countries, a central bank official said.
http://www.bloomberg.com/apps/news?pid=20601081&sid=awDz7iQfOlCU&refer=australia

[HIDDEN]

Weaker S$ policy

SINGAPORE central bank will adopt a weaker Singapore dollar policy as the government anticipates a record economic contraction this year.

In a widely anticipated move, the Monetary Authority of Singapore (MAS) on Tuesday said that it will re-centre the exchange rate policy band at the current level of the trade-weighted Singapore dollar nominal effective exchange rate (Neer).

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_363401.html

[HIDDEN]

hi,

Thanks for the S$ post Steph. As a result of the "devaluation" the S$ yesterday went up against the RM, US$, Stg and Euro. Odd world we now live in. 

I read that the re-centering would effectively take 1.7% off the value of the Singapore dollar, in a trade-weighted context. Maybe next week.

Singapore's GDP fell by about 17% in the first quarter of 2009. Gloomy news, although the Straits Times share index (STI) rose yesterday.   

For those interested in Singapore property prices, they fell some 14% in Q1/09 and condos are now available at 500 psf (older) - 675 psf (newer and smaller). As an example, the popular City Development's Lakeshore in Jurong was on offer at TOP two years ago for 750 psf +++ (1,000 psf for top floor) and is now about 650. That's a new development with a rental return of about 3% to 4%.

regards, Scott

TOP = Temporary Occupation Permit. This means that you can walk around parts of the building, and see the general layout, prior to purchase. It also means that the offer prices will be higher than at the "buying off plan" stage when the development was first released. Of course, nowadays, the prices may not be higher.
PSF = Per Square Foot price.

[HIDDEN]

Telegraph: US housing data puts Obama's hopes on hold
The number of US citizens losing their homes leapt by 44pc last month, as banks pursued delinquent borrowers after federal mortgage lenders Fannie Mae and Freddie Mac lifted temporary bans on foreclosures. A survey by Foreclosures.com found that 175,199 homes were repossessed by lenders in March. In spite of major banks promising to work with troubled mortgage holders to keep them in their homes, almost 370,000 families have lost their homes so far this year
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5160652/US-housing-data-puts-Obamas-hopes-on-hold.html

The Telegraph: UK Mortgage rejections increase fourfold
Nearly 9pc of vetted mortgage applications are being rejected this year compared to just 2.3pc in 2007, according to moneysupermarket.com. The website said that all the applications were qualified against the lender's criteria prior to submission and on paper appeared to fit. However, lenders still found reasons to reject them. Louise Cuming, head of mortgages at moneysupermarket.com, said: "Lending criteria has become too strict – even vetted applications that we would expect to be accepted without a hitch are being rejected."
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5159151/Mortgage-rejections-increase-fourfold.html

Citywire: Moody's downgrades top building societies
Ratings agency Moody's has slashed its credit ratings on a number of building societies after warning of further losses to come as people struggle to pay their mortgages. Moody's has downgraded a total of 16 building societies, including groups such as Abbey National, Alliance & Leicester and Nationwide, in anticipation of further pain to come in the UK housing market as a result of the global economic crisis. It has cut both its Bank Financial Strength Rating's (BFSR) on all the firms, as well as reducing some of its senior debt and deposit ratings.
http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=336800

Daily Mail: UK House prices down 12% on last year as values plummet at record pace
A counter to all the bullish articles we've seen recently.
http://www.dailymail.co.uk/news/article-1170185/House-prices-12-year-values-plummet-record-pace.html

Market Watch: UBS faces $1.8 bln loss, will cut nearly 9,000 jobs
LONDON (MarketWatch) -- Shares in Switzerland's UBS fell nearly 9% Wednesday after the struggling bank said it lost nearly 2 billion Swiss francs ($1.8 billion) in the first three months of 2009 as it planned another round of cost cutting and nearly 9,000 job losses
http://www.marketwatch.com/news/story/ubs-faces-18-billion-loss/story.aspx?guid=%7B8B7933AE-20F2-4C5F-8834-A67C9DBF56C5%7D&dist=msr_1

British retail sales drop for the ninth time in 10 months
LONDON: Retail sales in Britain fell for the ninth time in ten months during March as demand for furniture slumped to its lowest level for at least nine years, a leading industry lobby group said Thursday.
http://biz.thestar.com.my/news/story.asp?file=/2009/4/16/business/20090416075142&sec=business

Oil settles below US$50 amid gloomy economic news
NEW YORK: Oil prices were flat Wednesday as reports showing a drop in industrial production and a massive crude surplus did little to affect investors' already gloomy outlook on the economy.
http://

[HIDDEN]

Telegraph: IMF warns over parallels to Great Depression
''The International Monetary Fund has warned of "worrisome parallels" between the current global crisis and the Great Depression, despite the unprecedented steps already taken by central banks and governments worldwide. This recession is likely to be "unusually long and severe, and the recovery sluggish," said the Fund, releasing two advance chapters from its World Economic Outlook. However, it warned there is a risk that it could spiral down into a full-blown slump unless further action is taken to stop "feedback effects" gathering force.''
http://www.telegraph.co.uk/finance/financetopics/recession/5166956/IMF-warns-over-parallels-to-Great-Depression.html

Britain has been in a recession longer than anyone realised 
Britain has been in recession for a year, with the slump starting three months earlier than thought, official figures revealed yesterday.
http://www.dailymail.co.uk/news/article-1171550/Britain-recession-longer-realised.html

BBC News: Are there any signs of recovery?
Views from a selection of economists on whether things are getting better already. Comfortingly, all but one are bearish. The ITEM club chap is talking boloney as usual. Unbelievable that someone can make a career out of spouting this rubbish: "we should be in recovery by the spring of next year...if a recovery does begin, the UK will be one of the best placed to take advantage of it, because of the fall in the value of Sterling". Gordon's Brown's lapdog?
http://news.bbc.co.uk/2/hi/business/8000062.stm

Las vegas sun: Las Vegas braces for commercial foreclosures
A tsunami of commercial real estate foreclosures is on the horizon and is threatening banks and undermining developers who are already struggling with high vacancy rates.
http://www.lasvegassun.com/news/2009/apr/17/lv-braces-commercial-foreclosures/

The Times: The 10 places where UK asking price are falling the most
"RICS said that the number of new buyer inquiries rose for the fifth consecutive month in March and at the fastest pace since September 2003. The increase in demand led to a rise in sales, raising hopes for an end to falling house prices. However before you get too excited, bear in mind that transactions are still near historic low levels. Vendors are still being forced to cut asking prices before potential buyers will even consider a viewing... Here are the 10 towns or cities where asking prices fell most IN MARCH, according to property website Globrix."
http://timesbusiness.typepad.com/money_weblog/2009/04/the-10-places-where-asking-price-are-falling-the-most.html

[HIDDEN]

Australian, New Zealand Dollars Near Three-Week Lows on U.S. Bank Concerns
The Australian dollar traded near its lowest in almost three weeks and New Zealand’s was close to the weakest in a month as concern U.S. banking losses will deepen damped investors’ appetite for risk.
http://www.bloomberg.com/apps/news?pid=20601080&sid=apyQmeyhOdaU&refer=asia

Australia Central Bank Decided on Interest Rate Cut on Rising Unemployment
Australia’s central bank policy makers cut borrowing costs two weeks ago because rising unemployment and weaker-than-expected domestic demand increases the likelihood inflation will slow.
http://www.bloomberg.com/apps/news?pid=20601081&sid=aW1L9MBEPLsU&refer=australia

Euro Falls to One-Month Low on Concern ECB Discord Deepening
The euro fell below $1.29 for the first time in a month and weakened
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPpmVG1difYg

Euro May Extend Drop Against Dollar, Pound, High Frequency Says
The euro may weaken against currencies including the dollar as the ..
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNYzILnW6SLM

Telegraph: Markets braced for historic £200bn deficit
The pound slid after it emerged that Alistair Darling will this week unveil Budget plans which will consign Britain to a deficit dwarfing anything faced in peacetime. With economists raising the prospect of £200bn deficit and a gilt strike in the coming years, sterling fell by 2.66 cents against the dollar to $1.4539, wiping out much of the ground made against the US currency in recent weeks. The plunge came as it emerged that tomorrow the Chancellor will be forced to slash his economic forecasts and raise his borrowing forecast well into the future.
http://www.telegraph.co.uk/finance/5190512/Markets-braced-for-historic-200bn-deficit.html

Guardian: Vincent Cable's slideshow of economic doom
Suggests the policy makers don't know whether to fight the deflation of the richest 20%, or the 5% inflation for everybody else. Umemployment to stay high for 2 parliamentary terms, 32% drop in housing over the next three years, UK credit rating worries, long term budget deficit, rising repossessions etc. Surprisingly, there was no mention of the beautiful weather we have had recently
http://www.guardian.co.uk/politics/blog/2009/apr/20/vincent-cable-recession-briefing

REUTERS: GLOBAL MARKETS-Global stocks tumble on BofA results, oil slumps
Wall St slides on bank jitters, earnings outlook caution * US dollar rallies broadly as equities worldwide tumble * Government debt shines on banking worries flare up * Oil drops over 8 pct on economic outlook, dollar rise (Recasts; updates U.S. markets; changes dateline, previous
http://www.reuters.com/article/marketsNews/idUKN2047857820090420?rpc=44

The Times: Electrical goods increase in price
Recent purchasers of MacMinis might be pleased to know that there was a 25% price increase. Whether or not this is a one-off effect due to sterling devaluation through artificially low interest rates, or the emergence of a general inflationary spiral remains to be seen. Rising unemployment and high inflation, the heady mix only possible under Labour governments. But against the losses of UK housing stock? The new gold will be white goods and cars older than 9 years.
http://www.telegraph.co.uk/scienceandtechnology/technology/technologynews/5187838/Electrical-goods-increase-in-price-as-pound-falls.html

MoneyWeek: Why your company pension might not be so safe
"UK company pension funds are now in the red to the tune of over £240bn - the biggest shortfall ever recorded. And here's the irony. It's partly due to QE – quantitative easing, the Bank of England's cash printing press, which is supposed to be bailing Britain out."
http://www.moneyweek.com/personal-finance/why-your-company-pension-might-not-be-so-safe-14728.aspx

Telegraph: Gold price could hit $1,500
The aggressive monetary policy of central banks around the world is playing havoc with the structure of the bullion market, creating a chronic shortage of gold that may soon push the metal to fresh records above $1,500 an ounce.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5184036/Gold-price-could-hit-1500.html