A Run On Eurozone Banks?

The Calafia Beach Pundit raises an interesting question in relation to the recent surge in the US money supply which he suggests might be a reflection of a scramble into USD assets. More specifically, the argument would seem to be that a silent run on European banks is in the works as money is . . . → Read More: A Run On Eurozone Banks?

Faith in Banks

The Federal Deposit Insurance Corporation (FDIC) was created in 1933 as a depression-era effort to restore the public’s faith in banks and banking. The early years of the depression were marked by numerous bank failures and runs on even healthy banks. After taking office President Roosevelt declared a bank holiday to give regulators a . . . → Read More: Faith in Banks

Cash is King

It is not that I don’t enjoy a good old bull/teflon run as much as the next guy but just to provide some form of balance to the current QEasy Money Hymn I almost choked on my oatmeal earlier this week when I loaded up Bloomberg and learned that everything suddenly was fine in . . . → Read More: Cash is King

Governments taking over banks

Jerry Caprio and Ila Patnaik, at two ends of the world, on the same subject.

The UK Special Resolution Regime has excellent documentation on the web.

There is a lot of talk in India about financial stability, where basic ideas are distorted to defend the status quo. Financial stability is, sadly, not interesting to . . . → Read More: Governments taking over banks

Interview With Jim Willie

Interview With Jim Willie

An interview with Jim Willie where we discuss the potential of bank failures emanating from the Middle East and rippling throughout the world being the catalyst for the next round of the credit contraction.

TRACE MAYER: Hey this is Trace Mayer and you’re listening to the 50th episode of the . . . → Read More: Interview With Jim Willie

Bankrupting For Profit

At a Cambridge House Investment Conference I received a question about Bear Stearns.  In my answer I alluded to the possible financial benefit of some from its implosion.  When pressed I had to explain how credit default swaps worked and then we were out of time.  Because the owners of the majority of the . . . → Read More: Bankrupting For Profit

Did the Community Reinvestment Act Lead to the Present Financial Crisis?

With the U.S. credit crunch gone global and the $700 billion bailout package now looking like a small drop of water in a tidal wave of woe, the question of blame is now all over the media.

Who caused this mess?

If you read the Wall Street Journal you could easily come away thinking . . . → Read More: Did the Community Reinvestment Act Lead to the Present Financial Crisis?

Economists Finally Agree: We’ve Been in a Recession Since January

For at least a year now, ordinary people in the United States (people the press has been referring to as “Main Street”) have known that the economy was starting to slow down at the same time that prices were rising uncomfortably fast.

Now, some economists are finally starting to admit that, yes, the U.S. . . . → Read More: Economists Finally Agree: We’ve Been in a Recession Since January

Bear Stearns Collapse: Why It May Also Be the End for the SEC

The Securities and Exchange Commission (SEC) was set up as a reaction to the stock market crash of 1929 to provide oversight of brokerage firms and protect investors. Last month, Morgan Stanley and Goldman Sachs Group, Inc., filed to become bank holding companies. Now with the sale of Bear Stearns, the bankruptcy of Lehman . . . → Read More: Bear Stearns Collapse: Why It May Also Be the End for the SEC

Credit Crunch Hits Consumer Credit Cards with American Express’ New Policy

On October 7, American Express revealed that they will begin limiting their customers’ access to credit based on both where they shop and which bank holds their primary mortgage. While there is nothing in the law that prevents American Express (or any other credit card company) from doing this, the announcement is noteworthy coming . . . → Read More: Credit Crunch Hits Consumer Credit Cards with American Express’ New Policy