U.S. Economy Sinks While Economies Overseas Soar

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Jupiter, FL (PRWEB) June 5, 2008 -- Martin D. Weiss, Ph. D. explains how the U.S. economy is sinking compared to many foreign economies. Dr. Weiss takes a closer look at economic growth overseas.

The U.S. economy is losing the critical strengths that made it great while foreign economies are overcoming the great obstacles that made them weak.

Mike Larson's blog chronicles little-discussed new woes in the U.S., this time among America's thousands of small and large commercial banks. Here are the facts he highlights:

?    FDIC insured commercial banks and savings institutions reported a 45.7% decline in net income compared to the first quarter of 2007. The primary reason cited by the FDIC: Higher provisions for loan losses.

?    Although the biggest losses were among the largest institutions, 50.4% of all institutions reported lower net income.

?    Loans 90 days or more past due surged by $26 billion, or 24%.

?    Banks then increased their loan-loss reserves by $18.5 billion, or by 18.1%, the largest quarterly increase in more than 20 years. Despite that, a measure of their ability to cover bad loans plunged to the lowest level since 1993.

?    And the FDIC itself admits that "we're still in the early stages of the traditional credit stress you typically see during an economic downturn."

In key countries overseas, the story is vastly different. New investment in highways, ports and bridges is the biggest of all time. Banking is going strong. Currencies are stronger. And economic growth is not just rapid; it is being sustained at a rapid pace.

Sean Brodrick, reporting from a silver mine near Guanajuato, Mexico, shows how even the most productive producers simply cannot keep up with surging demand for key commodities around the world.

Rudy Martin, the Money and Markets Latin America specialist, writes about the most dramatic boom of all in Brazil, fast becoming the world's leader in alternate energy, and also sitting on the largest new petroleum discoveries of the century so far.

"In his latest dispatch, Larry Edelson shows how nearly every natural resource is about to enter the second, most powerful phase of their bull markets, eventually reaching heights that could make recent record prices seem tame by comparison," Dr. Weiss states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?The-Great-Dichotomy-1845

About MARTIN D. WEISS & MONEY AND MARKETS     

Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc. and a leading advocate for investor safety, is a nationally recognized expert on domestic and international financial markets. With more than 35 years of experience, including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through his monthly Safe Money Report and daily Money and Markets.

Dr. Weiss' keen understanding of foreign markets and the global economy has earned him a reputation for thoughtful, in-depth analysis that investors can rely upon to make informed financial decisions. Regularly called upon by the media for his independent investing guidance, he has been featured in publications nationwide, including The Wall Street Journal, The New York Times, Chicago Tribune, Investor's Business Daily, and Forbes and has also appeared on CNN and CNBC.

Throughout his career, Dr. Weiss has been an advocate for consumers and investors in the insurance, banking and brokerage industries, dedicating his time and resources providing analysis and data for Congressional testimony, constructive proposals for reforms in the securities industry and legislation for full financial disclosure as well sound accounting and fiscal policy. In November 2004, he launched the Sound Dollar Committee, a nonprofit organization dedicated to building a network of investors seeking to protect the nation's future by demanding honesty in government accounting, a balanced budget and sound economic policy.

Dr. Weiss is author of The New York Times best-seller, The Ultimate Safe Money Guide, which gave baby boomers a road map to grow their wealth safely. It was listed on the New York Times Business, Wall Street Journal, and BusinessWeek best-seller lists, as well as the Barron's Roundup for 2002.

Dr. Weiss holds a bachelor's degree from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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