Latest Government Scheme For Growth – The Invisible Tax Cut
Pulling forward future demand to stimulate economic growth didn’t work with the cash for clunkers program or housing tax credits. Car and home sales collapsed after consumers who were going to buy cars or houses anyways bought today instead [...]
US Treasury Calls TARP Repayments A “Milestone” While Ignoring The Elephants In The Room
Treasury’s Victory Call On Financial Bailout Premature The Treasury Department’s latest public relations effort to highlight the success of the financial system bailout focuses on the amount of TARP repayments versus total debt outstanding. In addition, the [...]
FDIC Considers Borrowing From Treasury As Banking Failures Increase
FDIC May Request Treasury Loan As Losses Grow The FDIC always takes pride in noting that it is self funding and covers failed bank losses by assessments on FDIC insured member financial institutions. Congress created the Federal [...]
The FDIC Deposit Insurance Fund (DIF) – A Risky Game Of Confidence
FDIC Rightly Worries About Public Confidence Due to the large number of bank failures during 2009 the FDIC Deposit Insurance Fund (DIF) has fallen to the lowest level since March 1993. Numerous headlines are screaming that the [...]
FDIC Tells Banks California IOU’s Good As Gold
Bank Have Enough Bad Assets Yesterday, a group of major banks, including Bank of America, Citigroup, JP Morgan and Wells Fargo, said that they would stop accepting California IOU’s. The State of California, virtually out of cash, [...]
Geithner – “I am not a crook”
“Chinese assets are very safe” This remarkable assertion regarding the safety of US debt securities held by China was made by Timothy Geithner, US Treasury Secretary, during his visit to China. That Mr. Geithner felt compelled to [...]
The Futility Of Lower Interest Rates, Obama Motors, “Atlas Shrugged” Sales Surge & Confidence Mounts
As stock markets surge, GM’s future is suddenly bright and consumer confidence soars, here are some recent blog posts worth the read with some alternative insights. Why lower interest rates are not effective monetary policy If too [...]
California’s Crash Omen of Nation’s Future
Borrow and Spend = Crash and Burn California has always been the trend setter for the nation but never more so than today as it totters on the edge of insolvency. The theory that States or Nations [...]
New Twist On Stimulating Economies – Work Less
Desperation Produces Silly Suggestion Governments worldwide are obsessed with pushing consumers to spend more. From Japan we now have a new twist on how to stimulate spending. Government bureaucrats (with obviously too much time on their [...]
