China Will Buy Oil, Not U.S. Treasuries

It looks like the Chinese are getting smarter, and will be buying oil instead of U.S. Treasuries. This is just the beginning, as soon the entire world will be buying real stuff instead of Treasuries. That means the Federal Reserve will buy more Treasuries as Americans buy a lot less stuff.

U.S. Economy: There Is No Way To Go Back To Where We Were

It wasn't fine before the crisis. We didn't have a solid economy. We had a bubble. That's the problem. And the bubble has been pricked. There is no way to go back to where we were. It's like trying to unscramble an egg. It can't be done.

Record Initial Claims

Another 6.648 million Americans filed for unemployment last week, shattering the record set the prior week. With generous new benefits for losing one's jobs, and powerful incentive (likely to be extended) to remain unemployed, don't expect people to return to work any time soon.