Energy independence?

Here at the watchdog we keep a watchful eye out for potential economic game changers. Is it possible the super-laser at the NIF is the solution? Mabye.....mabye not. Here are two articles for you to review. One Pro...one leaning towards con. You decide...... while we will keep an eye on it:

Article 1:

http://news.yahoo.com/s/afp/20090530/ts_alt_afp/usitresearchmilitarylaser_20090530082418

Article 2:

http://www.nytimes.com/2009/05/26/science/26fusi.html?_r=1

Tell us what you think.............

The potential plan for handling the financial crisis?

A great source for data is the IMF. If you want to be in the loop you need to keep up with the dog................... Please, take the time to examine the "Global Financial Stability Report" from the IMF:

http://www.imf.org/external/pubs/ft/gfsr/2009/01/pdf/text.pdf

Tell us what you think...............

Have a question? Ask it in the comments or contact the dog.

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Coming soon......... the dog will be posting videos that contain economic topics.

Even the FDIC has to borrow money?

The FDIC is supposed to be an institution of confidence when banks fail. According to a audit by the GAO, even the FDIC has to borrow money to help pay for the financial crisis. Here is the report:

http://www.gao.gov/new.items/d09535.pdf

For your reference here is the FDIC website:

http://www.fdic.gov/

Don't forget to examine the FDIC mission, vision, and values:

http://www.fdic.gov/about/mission/index.html

Your next question should be......Where do they borrow the money from to pay for failed institutions?

Tell us what you think.............

Oil price sustainability?

The watchdog knows that eventually we will run out of oil. Why? Well, fossil fuels (including oil) are used to power mass production (machines, factories, etc...) and play a major role in the mass distribution of goods and services (cars, trucks, roads, etc...). If you want to understand why the price of oil can go up and down or how it could fluctuate in the future........ Read the report from the IMF G-8 Energy Ministers. Here it is for your review:

http://www.imf.org/external/np/speeches/2009/052509.htm

Tell us what you think..............

Knowledge is power.

Since the dog is from Portland, Oregon. We thought it would be appropriate to post a comprehensive review of the regional real estate market. Here it is from Portland State University Center for Real Estate:

http://www.pdx.edu/sites/www.pdx.edu.realestate/files/media_assets/CREQ-2ndQtr2009.pdf

Tell us what you think..................

The Bailout Game.

For some relief of all the seriousness we recommend the following game:

http://www.thebailoutgame.us/

Hope you enjoy it as much as we did.

Housing bottom in? Not likely.......

Housing has been on the decline for quite awhile. Is there an end in sight? In our opinion, no; not yet. We think that housing will bottom when the prices represent a fair market value. What we mean by that is prices have not been fair for a long time. In order to sustain an economy it is necessary to have households and/or businesses in order. This should be a no brainer for anyone who took basic economics. This is known as the household-business cycle. When either or both of these entities are out of balance it throws the system off. It is the economic philosophical model (system) that is broken. Let me explain this in simple terms......... Homes that cost 200,000 or more is completly out of reach for most Americans. Sure, banks will loan you the money. However, if you examine a typical 30 year loan you will find that this price eats away @ 50% of an average (median) single earners income. As the global economy takes more jobs away from America there are less people that can afford such a price. In fact, it usually takes two earners to afford a home in that price range. Basing homes on two income earners should increase the risk of default. However, we believe that the brainiacs that do the risk modeling fail to include this in their valuation. In todays economy, at current national savings rates and tremendous debt load that the average American holds; it becomes reasonable to assume when one earner of the two earner equation loses their income for any reason; default is likely. Please take the time to review the new S&P data released today:

http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp/0,0,0,0,0,0,0,0,0,1,1,0,0,0,0,0.html

Just click on the March data. Then view the data in graph form with Excel.

Tell us what you think.............

Will Britain lose its AAA credit rating?

S&P a leading credit rating agency has put Britain under review. According to S&P, Britain's total net debt may reach 100% of the nations GDP. In plain english, that's not good for Britain.....no pun intended. Here is the article from the Telegraph.co.uk:

http://www.telegraph.co.uk/finance/financetopics/recession/5362996/Britains-AAA-rating-under-review-for-first-time-in-30-years.html

Tell us what you think................

Why is it important that we understand who is buying U.S. Treasury bonds?

For many years, China was buying our debt by purchasing U.S. Treasury bonds. It is important to note that China holds a vast amount of Treasury bonds as well as U.S. currency in reserve. China has awoken to realize that the bonds and currency they hold may have lost much of the original value. Why does this matter? It matters because the only people purchasing our debt is the Federal Reserve aka "The Fed". What does that mean? It means that the U.S. stabalization of the market and the economy is being supported only by placing Americans in debt. Here is an article you need to read from the Telegraph that covers China's new purchasing move into metals:

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/5160120/A-Copper-Standard-for-the-worlds-currency-system.html

Want to understand U.S. debt?? Here is a site:

http://www.publicdebt.treas.gov/

Here is a direct link to the current debt for the U.S. as of the printing of this post:

http://www.treasurydirect.gov/NP/BPDLogin?application=np

Tell us what you think....................

Economic Analysis......you decide.

Here at the Watchdog we do our best to provide you quick access to relevant data. We believe the "World Economic Outlook" from the IMF is one such report. Furthermore, you read it and get the chance to ask questions or post comments in the comments section. This data can be tough to understand but we put it in plain english for you. In our opinion, it does not look good for advanced economies such as the United States. Here is the report:

http://www.imf.org/external/pubs/ft/weo/2009/01/pdf/text.pdf

Tell us what you think..........

Understanding our future energy crisis.

This report has been out for quite awhile. Most people would have no idea of its existence. However, our goal at the watchdog is to provide you quick access to relevant authoritative information. This report from the U.S. GAO is entitled "Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production" The report compares and contrasts the relevance of alternative energy sources to oil. Don't want to read the whole thing? Don't worry just read what the GAO found on the first page. Here is the report:

http://www.gao.gov/new.items/d07283.pdf

Tell us what you think................

Want the truth? You can't handle the truth!

Here at the Watchdog we have known for a long time that the U.S. debt load is unsustainable. Finally, the .gov is telling the truth. America has some tough choices ahead........

Here is the link for the Bloomberg article from Obama's town hall meeting:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg&refer=worldwide

Tell us what you think....................

Will the U.S. lose its credit rating?

Don't know David Walker? You need too. David Walker was the U.S. Comptroller at the GAO for many years. That means he was the nations top Accountant. This man knows our financial situation better than anyone. Yesterday he was on CNBC. Here is the link:

http://www.youtube.com/watch?v=5OASE_Oy7nk

Also, here is an older GAO video of Walker explaining the U.S. debt problem:

http://www.youtube.com/watch?v=KIgrxpp97OQ

Watch the videos and tell us what you think...........

U.S. Market......Going up or down in the next month?

The U.S. stock market has been on quite the ride. This is an open forum.

Tell us what you think..........

Understanding the housing crisis.

Here at the watchdog, we strive to bring you the best sources for data. For housing data we believe the S&P Case-Shiller Home Price Indices is such a source.

Here is the website:

http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp/0,0,0,0,0,0,0,0,0,1,1,0,0,0,0,0.html

The data is in Excel format. To use just download the data. Then, use Excel to view the data in graph form.

Coming soon to the watchdog will be links to authoritative data sources.

Stress test results accurate??

Take the time to read the short post entitled "Was The Stress Test A Con All Along" by Charles Cooper:

http://www.cbsnews.com/blogs/2009/05/09/business/econwatch/entry5003442.shtml

Tell us what you think..........