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Is Government Debt the Next Crisis Headed Our Way?


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November 30

Is Government Debt the Next Crisis to Strike?


By Jon D. Markman
Contributing Writer
Money Morning


While American investors were busy enjoying their Thanksgiving dinners, global markets were shaken by word that Dubai asked for a payment holiday on the $59 billion it owes via its investment vehicle, Dubai World. The move, which comes as oversized bets on Persian Gulf real estate sour, was considered a default by the major rating agencies.

Last week's "standstill" request puts at risk up to $80 billion in debt linked to the emirate. While this is small in the context of the $3 trillion in losses written down by global banks since the credit crisis began, it may very well result in the largest country debt default since Argentina in 2002.

So while Dubai is insignificant on its own, and will likely be bailed out by its larger and much wealthier neighbor and fellow United Arab Emirates member, Abu Dhabi, it ignited much larger concerns over...

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Six Ways to Boost the Resale Value of Your Home – Even in a Down Market

By David Field
Contributing Writer
Money Morning


It's no secret that the old real estate adage tells us that only three things determine the value of your home – location, location, location.

But the reality is that there's plenty you can do with most any piece of property to get a higher selling price in almost any market. Some of the steps you can take are largely cosmetic – and are aimed at improving the "curb appeal" of the property. Others involve extensive reconfigurations, making them costly.

Despite the big differences in both time involved and costs, almost all of these steps actually have a real return-on-investment (ROI). As the U.S. housing market slowly revives, and as the federal tax credit of $8,000 for first-time homebuyers is extended, it's worth considering the...

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Unemployment Monkey Loosens Grip On Economy's Back

By Bob Blandeburgo
Associate Editor
Money Morning


Is the dark cloud of joblessness finally starting to dissipate?

Key indicators suggest it is, and while this will be a slow-moving dissipation, top economists as well as the U.S. Federal Reserve now say the picture for the coming months looks a little less bleak.

Unemployment, considered to be one of the darkest spots of a recovery that has seen vast improvements in stock markets and marginal gains in housing and auto sales, is finally starting show signs of stabilization and in turn, has consumers loosening their iron grip on their wallets.

"Taken as a whole, the labor market data for the United States is suggesting we are in a gradual, steady improvement towards job growth at some point over the next three to six months and the decline in jobless claims is consistent with that," said Zach Pandl, an economist at Nomura Global Economics (NYSE ADR: NMR) told...

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11/24/2009
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Fiscal Hangover: Amazon's #1 Investing Book

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The Week Ahead
November 30
The Chicago Business Barometer
December 1
ISM Manufacturing Index (11/09), Construction Spending (10/09), and motor vehicle sales reported.
December 2 The ADP Employment report.
December 3
Retail chains report Black Friday sales. Initial Jobless Claims (11/28) and ISM Services Index (11/09) reported.
December 4 Unemployment Rate (11/09), Nonfarm Payroll (11/09), Factory Orders (10/09)

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