fiscal policy: 81 Bank Failures...And Surging
- 08/23/09 09:16 AM
On July 3rd, more than half-way through the year, I wrote a post that the number oif bank failures had reached 52. Now here we are, less than two months later and that number has exploded to 81. We have had nearly 30 bank failures in less than two months. That is a pace of nearly one every other day. The most notable of the bank failures this weekend was Guaranty Bank, it was the third largest this year. The systemic cause of these failures is falling asset prices, specifically residential and commercial real estate. The problem is that despite aggressive monetary efforts by the government, asset values are … (5 comments)
fiscal policy: Taleb: "We're In The Middle Of A Crash"
- 07/12/09 01:17 AM
Nassim Taleb, the author of "The Black Swan", said during a CNBC interview on July 2nd, "We're in the middle of a crash" when referring to the economy and banking system. In other words, the crash is still happening and we have further to fall. And while most reasonable people would come to the conclusion that the economy is still falling based on rising unemployment (yes, I know unemployment is a lagging indicator, but losing 467,000 in June tells you something) and the deterioration of the consumer credit markets and the housing market. What Taleb did say that was interesting was that the government needs to, "stay … (15 comments)
On July 3rd, more than half-way through the year, I wrote a post that the number oif bank failures had reached 52. Now here we are, less than two months later and that number has exploded to 81. We have had nearly 30 bank failures in less than two months. That is a pace of nearly one every other day.
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