Archive for September, 2010

Banks keep failing, but much more slowly.

Monday, September 27th, 2010

From the Wall Street Journal,

BUSINESS
SEPTEMBER 27, 2010

Banks Keep Failing, No End in Sight

By RANDALL SMITH And ROBIN SIDEL

“The largest number of bank failures in nearly 20 years has eliminated jobs, accelerated a drought in lending and left the industry’s survivors with more power to squeeze customers.
Some 279 banks have collapsed since Sept. 25, 2008,…”

I’m amused that this article should run now, when the rate of new failures has slowed, as has the cost per new failure.
http://www.longspliceinvest.com/econCharts.shtml#Closures

One might suspect that Murdoch’s new mouthpiece is fear-mongering for political reasons, but there’s no proof.


The long view of how we got here.

Monday, September 27th, 2010

Here’s a fascinating op-ed from the New York Times.

The author, David Stockman, was the first director of the Office of Management and Budget under President Ronald Reagan.

Opinion
Four Deformations of the Apocalypse
By DAVID STOCKMAN
Published: July 31, 2010

How my Republican Party destroyed the American economy.

“If there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. …”


Looking up, a little.

Friday, September 10th, 2010

After two weeks when the FDIC didn’t have to close any failed banks, this week they only had to close one little one.  Things are definitely looking better.

FDIC closures chart