$7B Madoff Settlement a 'Game Changer'

The widow of a Florida philanthropist who had been the single-largest beneficiary of Bernard Madoff's Ponzi scheme has agreed to return $7.2 billion in bogus profits to the victims of the fraud. (Dec. 18)

U.S. Government's Financial Rescue Plan Costs Less than Projected

U.S. Treasury Secretary Timothy Geithner says the U.S. government's financial rescue plan will cost about $30 billion. It is considerably lower than what was estimated.




U.S. Treasury Secretary Timothy Geithner defended the $700 billion Troubled Asset Relief Program (TARP) on Thursday.

He told a congressional panel that the Treasury expected a positive return on its remaining support for banks, automakers, credit markets and American International Group (AIG).

Geithner said the U.S. government's financial rescue efforts will cost less than 1 percent of gross domestic product, considerably below past systemic crises.

[Timothy Geithner, U.S. Treasury Secretary]:
"These programs achieved their objective at a fraction of their cost that almost any observer predicted , even as recently as three, six , nine months ago."

The Treasury's most recent all-in cost estimate for TARP, including expected gains from AIG investments, is about $30 billion, down from a previous estimate of $350 billion by the Congressional Budget Office.




He said the U.S. economy and financial system have not yet recovered from the crisis, with the unemployment rate still near 10 percent and small businesses still having difficulty accessing credit.




[Timothy Geithner, U.S. Treasury Secretary]:
"Now the government's financial programs including TARP were not designed and cannot solve all those problems and cannot on their own solve all the damage caused by the crisis. But these programs do what they had to do, what they were designed to which was to protect the value of America' savings, to restore a measure of stability to the financial system at the edge of collapse, re-open access to credit and to restart economic growth."

He said the housing market also remains weak, and the Treasury is continuing to use mortgage finance giants Fannie Mae and Freddie Mac to apply downward pressure on rates.

Inflation in China Hits a 28-Month High

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Inflation in China has reached its highest point in more than two years. It's driven mostly by the soaring food prices. Chinese authorities are trying to keep prices stable, but economists see no relief any time soon.

The Chinese National Bureau of Statistics announced on Saturday, China's inflation has soared to a 28-month high. The consumer price index rose by 5.1 percent year-on-year in November.

Food was the biggest concern, with prices rising 11.7 percent. Economists say inflation could be spreading to other sectors, with health care up 4 percent and house prices up 5.8 percent.

[Hu Xingdou, Professor of Economics, Beijing Institute of Technology]:
"China will experience a long-term inflation era. Price rises will be seen in sectors like real estate and asset prices, prices of raw materials, commodities, agricultural products and agricultural inputs will also rise rapidly."

Economists blame massive lending and billions of stimulus spending in reaction to the financial crisis.

China's central bank raised lenders' reserve requirements for the third time in a month to sop up some of the excess cash in the economy that is driving prices higher.

Chinese authorities also promised to take a hard line on the hoarding of food and other goods which they say is artificially driving up prices.

But many retired city dwellers still worry they will not have enough money to pay doctor bills if food prices keep rising.

[Ms. Wang, Beijing Resident]:
"For people like us who have retired, with low salaries, you can afford to eat as long as you don't get sick. If you have to see a doctor you soon won't be able to afford to eat."

Forbes on Fox: Retire on Time With These Stocks

Informer: Stocks to help you save money

Jim Rogers expects much, much higher interest rates

Jim Rogers : REUTERS 2011 INVESTMENT SUMMIT

Wall street king Legendary investor Jim Rogers and author of ‘Hot Commodities’ agrees with Dr Gloom Boom and Doom Marc Faber in predicting ‘much, much, much higher interest rates’ in the US over the next few years and is now shorting US treasuries. He told a Reuters investment summit this week that ‘everybody in this room knows that prices are going up for everything’, Jim Rogers is not only an astute businessman, a voice of reason and a gentleman but is also blessed with a genuine sense of humor - Jim Rogers 's golden words: Investment in productive capacity is what leads to the long term growth of economy.



One important fact you need to remember. When the crash happens, a new system will be offered. Refuse it, unless it is a gold standard.I doubt that they would offer a gold standard due to what happened in the UK in the 1930s when Churchill tried. It'll just be another Fiat currency backed by nothing.