Zombie Banks

Think that the worst is over and the "green shoots" are starting to appear everywhere? Think again.

Gaming the Government Bailout

This is a fascinating, must read article. Do you think the banks are going to do what is best for the country or what is best for themselves? Yeah, me too. This article discusses how they can do so.

Must Read of the Month (and probably Year)

Take the time to read this article from the Atlantic Monthly. Very important! Here is the heading paragraph.

The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.

Latest Trillion Dollar Plan-of-the-Week

This would be hilarious if it weren't sending us all down the road to serfdom.  The latest "bank bailout plan" is Monday's "Trillion Dollar Plan of the Week to Save the Economy."  No doubt sufficient bonuses are included so that the merry men who brought down our economy will be saved from ruin.  Too bad for the rest of us.

Zombie Banks

Unsurprisingly, we are going down the same path that the Japanese did in the '90's, which is to say, not acknowledging the problems with our banks and killing off the unsolvent ones so that the healthy ones can prosper.

About That Bank Bailout

You know that 350 billion...no 700 billion...no 2 trillion dollar bailout. The new Treasury secretary is going to supply money without end. Should keep the boys on Wall Street in bonuses for years to come. Hope someone wants to borrow the money.

Why the US Will Guarantee All Bank Deposits (Coming Soon)

If you are a large company and both Ireland and Germany are guaranteeing bank deposits, where are you going to put your money? (Hint: Not the U. S.). Since we are running a current account deficit that requires 2.5 billion dollars in foreign aid...oops, I meant money, every single day, then we are going to have to do something that will keep big money from running to Ireland and Germany. Solution? Guarantee all bank deposits.

This will allow banks that should fail to keep on operating, thus becoming zombie banks, which will in turn hurt all healthy banks because they will have to compete with zombies.