Tuesday, June 9, 2009

Required Reading: Tuesday, June 9th, 2009

California Budget Recalled: The $24.3 Billion Budget Deficit. Missed Economic Projections and Financially Betting on a Recovery that Never Showed Up. 20 Years of Bubbles. From Tech to Real Estate. – Dr Housing Bubble

Nobel Winner Krugman Sees U.S. Recession Ending Soon – Bloomberg

June 8 (Bloomberg) -- The U.S. economy probably will emerge from the recession by September, Nobel Prize-winning economist Paul Krugman said.

“I would not be surprised if the official end of the U.S. recession ends up being, in retrospect, dated sometime this summer,” he said in a lecture today at the London School of Economics. “Things seem to be getting worse more slowly. There’s some reason to think that we’re stabilizing.”

Five Things: Predicting the Recession's End – Minyanville, Kevin Depew

It's true -- people see what they want to see. A headline writer approaching the market from an optimistic perch can't be faulted for swooping in and locking onto the "recession's end" theme anymore than a grizzled veteran with ink-stained hands can be faulted if she chose the "Krugman Predicts Lost Decade for US" theme.

Supreme Court Delays Sale of Chrysler to Fiat – The New York Times

The Economy Is Still at the Brink – The New York Times

The storm is not over, not by a long shot. Huge structural flaws remain in the architecture of our financial system, and many of the fixes that the Obama administration has proposed will do little to address them and may make them worse. At another fund-raising event, for Senator Harry Reid, President Obama said: “We didn’t ask for the challenges that we face. But we are determined to answer the call to meet those challenges, to cast aside the old arguments and overcome the stubborn divisions and move forward as one people and one nation .... It will take time but I promise you, I promise you, I’ll always tell you the truth about the challenges we face.”

Keeping that statement in mind — as well as an abiding faith in the importance of properly functioning capital markets — we have come up with a set of questions meant to challenge a popular president, with vast majorities in Congress, to find the flaws in the system, to figure out what’s being done to fix them and to get to the truth about the difficulties we face as we set out to restore the proper functioning of our markets and our standing in the world….

With median home price at $420,000 in April, have we hit bottom? – The Santa Cruz Sentinal

A Brief History of Credit Disasters – The Big Picture, Barry Ritholtz

10 big banks get OK to repay $68 billion in bailout money – The Los Angeles Times

Some owners who used homes to buoy finances are sinking – The Los Angeles Times

In better economic times, Santa Clarita mortgage broker Fred Arnold relied on a home equity line of credit if his cash flow was uneven and he needed to cover payroll.

But when home sales crumbled last fall, there was no such backstop for the business. His home was still worth more than the mortgage, but his bank was retrenching and had shut down the credit line. So Arnold sold his house, used some of the proceeds to keep his business afloat and bought a smaller home.

Florida commercial fisherman hooks live, unstable missile in Gulf waters – Breitbart News

Authorities in Florida say a commercial fisherman reeled in a live missile in the Gulf of Mexico and kept it on his boat for 10 days.

The sheriff's office in Pinellas County says the boat's captain, Rodney Soloman, hooked the air-to-air guided missile 80 kilometres off the Panhandle town of Panama City.

The U.S. air force and navy use Gulf waters off the Panhandle for weapons training.

CEO forgot to tell wife about pay cut – Reuters

British Airways Plc Chief Executive Willie Walsh is showing solidarity with his staff in planning to work without pay next month as part of cost cuts, but the move may not have gone down so well with his wife…