Some news for investors

Affects mainly US markets, but anything the US does always affects the rest of the world in a negative way.

1. Investors headed for the exits as signs of further job market weakness and a disappointing Fed regional survey added to doubts that the economy was set for a quick recovery. U.S. Treasuries also plunged on news that the Government would sell a massive amount of new debt next week.

2. Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through 12/31/2013. On 1/1/2014, the standard insurance amount will return to $ 100,000 per depositor for all categories except for IRAs and certain other retirement accounts. They will remain at $ 250K per.

3. The UAW said today it had reached a deal with GM and the Treasury Department that would help GM cut its labor costs and reduce its obligations to a new retiree health care fund by billions of dollars.

4. For the first time since 1983, the U.S. Government posted a deficit in April. That's a big swing in the wrong direction, as the bump in personal tax collections in April historically results in a big surplus ... on average about $68 Billion.

5. The Treasury will pump another $7.5 Billion into GMAC, the troubled auto lender partly owned by GM. That will bring the bill up to $12.5 Billion. If the Treasury takes preferred stock in exchange, Uncle Sam will be GMAC's #1 shareholder. They're establishing quite a portfolio on behalf of US taxpayers ... AIG, Fannie Mae, Freddie Mac, 18 of America's worst banks, and now GMAC.

6. The FDIC suffered its biggest bank failure of 2009 last week when BankUnited FSB, Coral Gables FL bit the dust. It will hit the FDIC for $ 4.9 Billion.

7. The unemployment scene had another lousy week. 6.66 million Americans are currently filing for unemployment benefits. That's a new all time high for the 16th week in a row.

8. Bill Gross, the co-chief investment officer of PIMCO said that the U.S. will eventually lose its AAA rating, but not any time soon. S&P lowered its outlook on the UK's AAA credit rating today to negative from stable and said the Brits stand a one-in-three chance of a rating cut as their debt approaches 100% of GDP.

old-timer wrote:and people worry about the 150baht charge at ATM's........

Yes, OT. I agree that there are bigger fish to fry than the baht rate fluctuating between 33 and 36 or the currency exchange in other parts of Southeast Asia. If those 3 baht are causing someone a hardship, they made a bad decision in coming to Thailand.

it not about 150 baht charge when I came to Thailand it was 41 to the buck and I base every thing
on 40 to 1 I am still in good shape at 34 to 1 but that not my issue it the fact it over valued
and the SCB & the owners will NOT let in float they are controlling the value which is not fair
if it was floating & worth 33 or 34 we would have nothing to complain about but to ad insult to injury they added a 150 baht ATM fee which does not affect me since I do not do ATM I get cash advances and pay the
1% charge it would not care if I was getting 38 to 40 but I am not and when the brits came here they were getting over 70 that a big drop to 48 which it climb back up to 52 but it still hurting my friends from
the UK so a statement like that is unwarranted and if not cruel then it unnecessary

In words of warning to potential new expats (don't come if you have serious health problems, don't come if you don't have or can't afford insurance, don't come if you have school-age children and expect international-quality schools in Udon, etc), maybe a word of warning would be:
Don't come planning on a stable exchange rate. It was as low as 31.2 to a dollar in March 2008 and the pre-1997 float rate was 25 for many years. I'd say a safe floor would be 10 baht lower than today's rate......as much as that would cause pain for a lot of expats, you'd be better served if you planned for the worse than thought the rate would stay in the 35-40 range.

You won't see any tv lineup of unemployed people seeking unemployment checks or other personal scenes of distraught Americans. The progressive media avoids any news that shows how bad the Obama socialist programs are affecting Americans. The hundred of billions of new taxpayer debt are channeled to the State-controled banks and industries. The few millions handed to the taxpayer are only for show and maybe buy a few votes. Bank officials and industry executives, now firmly under the thumb of the government, are occasionally on tv. They have to either smile for the camera or line up for unemployment. The economic statistics only get worse. No accurate economic forecasts are possible due to massive and illogical State intervention.

old-timer wrote:

TJ wrote:illogical State intervention.

what is that ..........in engliish

Government creating restrictions that do not help the people or business and may not help the government or the country.

An example: a tax that stifles productivity, causes people to use something less and causes a reduction in tax revenue generated for the government. The tax cannot pay for the new program for which it was intended and no one gets anything from it. That is "illogical State intervention."

also referred to as 'bailouts'

a fine example will be the billions given to GM, so the fat cats can walk away with something, but bankruptcy is inevitable. just a matter of time, nobody is that stupid to think the company will change or be profitable. just hope gov't gets first dibs at the auction sale.

LA I don't pay attention to Bush lovers they can not not accept that all these problems happened on Bush watch and Obama is trying to clean up his mess. so they write in here using fancy words and saying all sorts of B/S and putting it on Obama door steps. if John McCain would have won things would be worse
because the R. would be running things and look what they did when they was in control so when TJ & WBU post there opinions I look at them as nothing more than opinions which are 100% biased towards
the President because he is a D

laphanphon wrote:also referred to as 'bailouts'

a fine example will be the billions given to GM, so the fat cats can walk away with something, but bankruptcy is inevitable. just a matter of time, nobody is that stupid to think the company will change or be profitable. just hope gov't gets first dibs at the auction sale.

Absolutely agree.

I was against all bailouts on Bush's watch or anyone's else's, and I am against all of the others since.

More financial news today.

1. Stocks surged today after a report was released indicating that consumer confidence rose in May to the highest level since September. The Consumer Confidence Index jumped to 54.9 from 40.8. Economists who had been interviewed were looking for a number in the vicinity of 42.3.

Dow 8473.49 + 196.17
Oil 62.28 + .61
Gold 953.85 - 4.95

2. Bank America announced today that mortgages had been modified for more than 50,000 borrowers as part of a settlement with respect to predatory lending at its Countrywide subsidiary.

3. General Motors Corp has failed to convince bondholders to accept a debt-for-equity swap setting the stage for the largest ever U.S. industrial bankruptcy by the end of this month.

4. A new low-cost airline has announced that they will begin serving mid-sized U.S. cities that it thinks larger carriers have left behind. Clearwater based JetAmerica will start 34 non-stop flights a week beginning July 13. Cities in the loop will be Toledo, South Bend, Melbourne FL, Newark, Minneapolis and Lansing, MI.

5. Stocks in the news today:
Bank America 10.98 - .09
General Motors 1.44 + .01
Ford 5.40 + .14
Home Depot 23.80 + .94

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I'm always skeptical of polls. I'd be curious to know if Americans were asked what issues specifically made their confidence improve.

WBU ALUM wrote:

old-timer wrote:and people worry about the 150baht charge at ATM's........

Yes, OT. I agree that there are bigger fish to fry than the baht rate fluctuating between 33 and 36 or the currency exchange in other parts of Southeast Asia. If those 3 baht are causing someone a hardship, they made a bad decision in coming to Thailand.

The problem for people that are on fixed incomes is that they get used to living ''UP''to their means and with the baht going down and prices skyrocketing,they feel the discomfort because they have to live with less!
Many people I know have fallen below the minimum requirement for qualifying income with the drop in the baht exchange,another feeling of pressure.I doubt that many retirees that moved here without experience in foreign exchange fluctuations,even thought about it!When I moved here $1400 would qualify me for a retirement visa,now it is $1900 and was $2250 at one point,if the baht goes back to pre 1997 economic crash,it would take $2600 a month to qualify!

Plus one never knows when the Thai gov't might raise the ''bar'', as the did when they more than doubled the income qualification for marriage visas!There was talk at that time that possibly the reirement visa qualifications were also going to double.I remember many expats sweating out the uncertainies at the time.I even tried to change my retirement visa into a marriage one at that time and was''turned down''(officially discouraged from doing so under the mild threat of ''they don't like that.you already have a visa,they might not approve a new one'' )

The cost of eveything ,except rent generally,has increased.When I was still living in Bangkok,my condo rent costs were around 32,000 baht a month,the present tenant costs are 68,000 baht per month!

Stan before I pay 32K for a apartment in Thailand I would go back home even if I was rich
Stan on thai TV there was talk of devaluing the baht to 40 to 1 by a prominent man
and he said the baht is hurting every thing so it must be devalued & I agree with him