Archive for October, 2014

Banks: It’s still not over, but nearly.

Friday, October 17th, 2014

The FDIC having to close failed banks may seem like– ok, it is– old news, but it is still happening. It’s not above-the-fold news, though, because failures now are small, few, and far between.
They closed another today, costing the FDIC insurance fund a mere round-off error of $24 million added to $90 billion total.

More interesting, until today we’d had the longest gap, 12 weeks, without a failure since 2008. That’s worth noting as good news.


FDIC Bank closures, 2007 to October 17, 2014

A Summary of the Crisis

Wednesday, October 8th, 2014

Nobel Laureate Paul Krugman has written a review of fellow-economist Martin Wolf’s newest book. The review serves as a very readable summary of our latest financial crisis.

He covers where the crisis came from, what we’ve done, and what we haven’t done but should.

From the October 23, 2014 issue of The New York Review of Books, reviewing
The Shifts and the Shocks: What We’ve Learned—and Have Still to Learn—from the Financial Crisis. Click to follow the link:

Why Weren’t Alarm Bells Ringing?


Longsplice rope

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The September newsletter is out

Wednesday, October 1st, 2014


I just posted and emailed the September 2014 Capital Drain newsletter. If you’re on the direct mailing list for that, you should be receiving it now.

If you’re not yet on the list, but would like to be, send me an email.
If you just want to read the letter, follow this link: September 2014 CapDrain.

I forgot to announce the August letter, so if you didn’t get that in the mail you can see it at: August 2014 CapDrain.
IMO the August letter is the more interesting of the two, even though it’s a bit behind current events.

I hope you’ll enjoy them. You can sample from the past several years of newsletters on this page.