The Financial Landscape: Gas Is Falling; the Euro's Failing; U.S. Bondholders, Start Bailing

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The financial landscapePain at the Pump Keeps Receding: The average price of a gallon of gas declined 11.22 cents during the two-week period that ended Friday and now stands at $3.63. "The rate of decline was reduced in the latest two weeks," according to Trilby Lundberg of the Lundberg Survey, "but we have yet to see the impact of the government sale of crude." Oil prices have fallen markedly since the International Energy Agency announced its intention to release 60 million barrels of oil from reserves over the next month, but the trend in gas prices has been downward since early May, and Obama administration officials pointedly declined to speculate about the impact on gas prices on Thursday, when the IEA announcement was made.

Soros Sees a Euro Exit Coming:
George Soros, the billionaire investor who got even richer betting against the British pound, predicts it is now "probably inevitable" that a country will leave the euro -- a development for which no enabling mechanism currently exists. Challenging the view of Europe's crisis as a sovereign debt issue, Soros explained, "I think most of us actually agree that [it] is actually centered around the euro. It's a kind of financial crisis that is really developing.... The authorities are actually engaged in buying time. And yet time is working against them."

"We are on the verge of an economic collapse which starts, let's say, in Greece, but it could easily spread," Soros added. "The financial system remains extremely vulnerable."

Keeping his criticism constructive, Soros encouraged the development of a "plan B" to save the European Union, the preservation of which he called "a vital interest to all." But judging from the tenor of his comments, who wants to bet that Soros -- one of those storied investors whose pronouncements have the potential to move markets -- has recently taken some heavily anti-euro positions?

Bad Times Ahead for Bondholders?: Citing a research arm of McGraw Hill, the parent of Standard & Poor's, the Financial Times reports that U.S. government bond investors could lose up to $100 billion if the country's debt loses its AAA rating. The study's concern is not the debt ceiling, which it assumes will be raised, but rather "the long term fiscal outlook," which Congress appears poorly poised to address. Such a downgrade, which would cause higher yield and lower prices, could also mean the Treasury -- and thus, the taxpayers -- paying $2.3 billion to $3.75 billion a year more in interest on a $1 trillion annual budget deficit.

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shhappens

either way, bush created the mess, then once he left and another president comes in.and to many have to end up find a scape goat for it.
Who? ltea baggers are one, Scape goats.
but just think if the reserve runs out within 10year we are out of oil. then what we going to do?

June 28 2011 at 7:59 AM Report abuse -3 rate up rate down Reply
1 reply to shhappens's comment
mrspelosi

Sorry to hear of your illness dear. I suffer from leftwing loon disease too.

June 28 2011 at 2:15 PM Report abuse +1 rate up rate down Reply
Redding Holbert

Hello my fellow Americans, i welcome you to a brave new world.
The US banking system is owned by foriegn banks. The Federal Reserve is owned by the Bank of England.
Europe is broke and so are we.
Now comes the Great Great Depression.

June 28 2011 at 2:16 AM Report abuse +4 rate up rate down Reply
tonyvg44

Let us thank our politicians for being able to be bought out by the large corporations.. PERIOD!!!!!!

June 27 2011 at 10:39 PM Report abuse +5 rate up rate down Reply
MARK

believe on the LORD JESUS CHRIST and thou shall be saved.......JESUS is coming soon ..... put your trust and faith in JESUS .....he paid the price for all sins.....if you believe this you will be saved..... GODS word is truth.....ask GOD TO SAVE YOU....HE WILL....HE HAS PROMISED IF YOU TRUELY BELIEVE....

June 27 2011 at 9:57 PM Report abuse -1 rate up rate down Reply
1 reply to MARK's comment
gospelb

Amen

June 28 2011 at 5:13 AM Report abuse -2 rate up rate down Reply
David

If you people will pick up and read the book by William Cooper " Behold a Pale Horse" than you will know that One World Government is just around the corner.

June 27 2011 at 9:56 PM Report abuse +2 rate up rate down Reply
1 reply to David's comment
wlouche

Yes, I read some where Obama wants NATO to run The World. When goverments turns us into andriots, maybe, otherwise, never will happen, religious differences.

June 28 2011 at 1:50 AM Report abuse -1 rate up rate down Reply
1 reply to wlouche's comment
Glenn

NATO can't even fight a small conflict..........let alone run the world. NATO was never been anything and will never be anything except a tool for the U.S. And, I mean that......positively, not negatively. If NATO runs the world.......then.......the U.S. is running the world.

June 28 2011 at 3:35 AM Report abuse -1 rate up rate down
Medic538

He's got our government in his pocket. We The People are being screwed by the Congress, Senate, President and the biggest scam, OUR LEGAL SYSTEM. Don't forget all the State Legislatures. Like in Delaware where they legally double dip. Meaning they hold office + are able to work a State job. You know that when they apply for a State job; whose going to get hired, Joe or Jane Smith or Mr/Ms. Representative or State Senator. Corruption is rampant in DE.

June 27 2011 at 9:03 PM Report abuse +4 rate up rate down Reply
likes2kayak

God Bless America for we are all doomed!

June 27 2011 at 9:00 PM Report abuse +3 rate up rate down Reply
likes2kayak

Soros made lots by betting against the British Pound which was the reserve currency before the dollar.. He invested in the dollar and made it tops.... Now he is saying the dollar is going to tank.... Do you all know that he has also bought 11tons of Gold! He is doing what he did before and is now betting against the dollar and it to will fall just like the British Sterling did! He has caused so much destruction of different economy's around the World that China will not even let him in anymore! It's time to kick him out of the USA also!

June 27 2011 at 8:47 PM Report abuse +3 rate up rate down Reply
lfriscofog

If anyone had a clue as to why were in trouble and thay back engineered the problem they would find a solution.Energy is everywhere The oil barons want to control all energy no matter what its source might be.Over charging us for fuel products gives them the money and power to purchase up all other sources of energy,that is a monoply and they should be barred from purchasing rights or companys that produce alternate sources of energy.Otherwise you will always pay too much for fuel no matter what that fuel is produced from.
Start by selling OIL from ALASKA/CANADA to the USA Let CHINA/INDIA purchase OIL from RUSSIA.One of the main reasons were in Arabia is OIL from south Russia needs to get to shipping ports south of Iran.Our Govt has become a Country within a country and deals at levels to make them stronger as politicans, while we shrink as Americans with a voice.We are being taken over from within by the people we put in office to protect us.GOD BLESS AMERICA no one else will.

June 27 2011 at 8:33 PM Report abuse +3 rate up rate down Reply
Iselin007

Let them keep borrowing from China when China goes broke no one will bail them out then we'll get our manufacturing back without firing a shot.

June 27 2011 at 8:26 PM Report abuse rate up rate down Reply
1 reply to Iselin007's comment
likes2kayak

When we default to China the only thing we will have to give them is the Land! The interest on our debt is only 10% of what this Gov. takes in.... These idiots in D.C. "haven't got the brains of a louse" as my mother says!

June 27 2011 at 8:51 PM Report abuse rate up rate down Reply