We are starting to get a sense of who the winners and losers of the Great Unraveling are. Spain is definitely a loser. Just think, a few years ago Spain was the envy of Western Europe with a dynamic and booming property market and prodigious GDP growth. The country was THE holiday-maker’s paradise, with many buying second homes. It ranked […]
I don’t much like Ken Lewis. It should be fairly obvious to everyone that he is a man who has only his own interests at heart. But, his revelation that BofA bought Merrill Lynch for the agreed-upon September price, despite Merrill’s having an additional $7 billion in losses is grounds for legal action. Let’s review the situation. In September, Hank […]
Optimism and the world economy | A glimmer of hope? | The Economist Apparently the Economist thinks this is a Fake Recovery too. “Optimism is one thing, but hubris that the world economy is returning to normal could hinder recovery and block policies to protect against a further plunge into the depths.” naked capitalism: On Pelosi’s Duplicity and Apparent Sandbagging […]
Marshall Auerback here. Yesterday, Ed made a big to-do about China’s increase in gold reserves. I am going to take a different view here.
CLSA is saying that the increase is from purification and miscellaneous transactions since all the way back to 2003 so that it was not a recent open market purchases but accumulation of 6 years of this process. If this is the situation, then this news really is not as significant as people think.
Markets Cheer Stress Test Double Speak – Yves Smith I think the title speaks for itself. Auctions for Troubled Property Loans Jump to the Web – NY Times Perhaps this additional channel for the loans will help clear the underlying housing inventory. Interesting development in any event. Not for the faint of heart. Funds try to spot the great oil […]
George H. W. Bush’s National Security Advisor talks with Charlie Rose and Carlos Pascual, Brookings Institute vice president and director of Foreign Policy. They opine on “the Obama Doctrine” as Barack Obama nears his 100-day mark in office.
It looks pretty clear that the U.S. regulators are going to clean house this year — at least with small banks. Hundreds of small banks and credit union will go into receivership in 2009. However, big banks are getting a free ride. First there was the juxtaposition of the kid gloves treatment of too big to fail financial institutions versus […]
The National Credit Union Administration (NCUA) has put Eastern Financial Florida Credit Union into conservatorship, an institution with $1.6 billion in assets. This looks to be the busiest day for regulators since the crisis began. 4 banks and 1 credit union have been shut this Friday. The NCUA Eastern Financial press release reads as follows: The National Credit Union Administration […]
There is another bust in Idaho, the fourth today, at a cost of nearly $200 million on assets of only $488.9 million. Ouch. This is the 29th FDIC seizure in 2009. The FDIC issued the following press release about First Bank of Idaho: First Bank of Idaho, FSB, Ketchum, Idaho, was closed today by the Office of Thrift Supervision, which […]
This makes three today. Here is the California Press Release. Note the enormous relative cost as a percentage of assets to the FDIC, which I have bolded. No bank is taking the deposits or assets here: The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of First Bank of Beverly Hills, Calabasas, California. The bank was […]
I have highlighted the area that shows the estimated cost to taxpayers below. See the FDIC website for more details: American Southern Bank, Kennesaw, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with […]
This is from the Globe & Mail: Bank of Canada Governor Mark Carney is signalling frustration with the Obama administration’s handling of the financial crisis, saying delays in shoring up the banking system in the United States have exacerbated the recession in Canada. With remarkable frankness, Mr. Carney singled out the U.S. government for criticism in his quarterly economic report […]