Posts under ‘Credit Crises’

The sad reality is that the first package did little in the way of promoting real organic economic growth despite goosing the GDP figures, primarily because most of it was horribly misdirected.

Never have so few, done so little, and made so much, while screwing so many. “On the Forbes list of rich people, you will find hedge fund managers in droves, but no one who made his money as a hedge fund client.”

A detailed look of the banks deliberate promotion of the sub-prime lending fraud and other credit bubble blowing strategies that ultimately precipitated the housing crash and financial crisis we have today.

A discussion of the roles played by the Federal Reserve, Congress, the banking sector and others in the current crises. Essentially they new it would end badly yet deliberately promoted and fostered it.

Retail sales as per the Census Bureau have increased on average .34% per month this year which is not going to support an economic recovery or employment growth, which is why we have neither.

A report that figures the large national banks are facing losses of between 55.3 billion in a best case scenario, up to 179.2 billion in a worst case situation.

The graphs in the report go back to the 1st quarter of 1999 and show total debt at 4.6 Trillion the peak of 12.8 Trillion achieved in 2008 represents growth of 278% over a 9-year time frame.

Costs to the FDIC Deposit Insurance Fund have hit 18.93 billion this year. Well above the 15.33 billion the FDIC had allocated for closures during all of 2010, and that’s including the pre-paid assessments.

I think they overplayed their hand this time, just like 1929, hubris breed’s contempt. The societal backlash then was significant and it will be yet again because when somebody loses their job, house, car, savings, pension and concept of fairness and equality as they understood it, they have nothing left to loose.

Yesterday’s FOMC meeting announcement contained a number of surprises, the biggest of which was an acknowledgment from Fed Chair Ben Bernanke that the economic recovery was faltering. Not 10-days before he was telling everybody “don’t worry be happy”.