Posts under ‘The Fed’

The FDIC 2nd Quarter Banking Profile is out. Problem banks increased by 54 to 829 involving 403 billion in assets, a decrease of 28 billion from the first quarter.

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.

What we got was a 27.2% plunge in existing home sales to the lowest figure since 1999, when the NAR started keeping records, as sales hit 3.83 million units annualized. A record drop to a record low as months supply hit a record high of 12.5.

How does it go, “no justice, no peace”. The demonstration in Watsonville earlier this week at the Chase bank is an expression of the public’s frustration with a lack of justice as the banksters collect their bonuses while John and Jane Doe collects food stamps, unemployment and foreclosure notices.

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”.

The June New Home Sales data is the worst figure for that month on record, while May set the new all time record low. Further the initially reported gains of +27 and +15% for March and April, the peak tax credit buying months have been revised down to just +11% and + 10% respectively.

Mr. Bernanke’s statement that the economic outlook is unusually uncertain is quite the contrast from his previously “certain” statements. I laud the chairman’s candor in admitting that he really has no idea what happens next.

80% of Americans have doubts about the financial reform bill, 47% think it benefits the finical services industry, just 38% figure they’ll benefit.

When those at the top set the example for the rest of us to follow and that example is as perverted, morally and intellectually bankrupt as that which we have today. It begs the question, just where does the leadership, and I’m not just referring to the government, figure this is going to end up?