Remember the movie by that name?
FDIC is starring in the sequel.
In my last post, I talked about the necessity of dealing with the bad debt banks are holding. Until this bad debt is cleared from the bank’s books, it’s my view economic recovery will be delayed.
A central part of Obama’s recovery plan was to help banks clear bad assets from their balance sheets by helping them sell these assets to investors while having the government subsidize the process via cheap financing.
Only problem is, the price investors are willing to pay for these assets is far lower than the price banks are asking. Read more »
Posted in
General
Count me as a skeptic, but a realistic one.
Bank profits were supposedly way up during the first quarter of this year, causing bank stock prices to soar. According to an article published on Bloomberg on June 7, 2009, the 5 largest US banks declared a profit, and a healthy one at that, during the year’s first quarter. This occurred (supposedly) in the quarter immediately after the quarter in which banks suffered record losses. The KBW Bank Index has doubled since March 6 on the news.
Read more »
Posted in
General
Makes me sick.
Earlier this year, I believe a conscious decision was made to sacrifice the US Dollar in an effort to rescue the troubled economy.
Despite assurances from Treasury Secretary Geithner (“Financial Times” May 21, 2009) that a strong US Dollar remained a priority, the US Dollar continues to devalue against many other world currencies. Geithner told the House of Representatives his “basic obligation is to make sure that we put in place policies that sustain confidence in this economy, in our currency, that we sustain a strong dollar, that we retain what is a great strength and asset to this country, which is the most deep and most liquid markets for Treasury securities in the world”.
Meanwhile the US Dollar continued to devalue. Read more »
Posted in
General
