Interesting post from Yves at Naked Capitalism about Wall Street in the 1920's just before the Great Crash and Great Depression. Read it here.
Joseph Stiglitz is a Nobel-prize winning economist. He is also a former Chief Economist of the World Bank. He resigned / was forced out in 2000 because of his criticism of IMF and US Treasury policies in forcing "free-market fundamentalism" onto developing and emerging market countries in the 1990's. He has been a sharp critic … Continue reading Let Markets Be Markets
In the previous montrous, global financial meltdown (the Great Depression), the leading economists at University of Chicago sang a very different tune from what they promote today. They actually called for nationalizing the Federal Reserve Banks and giving total control of money creation to government. They argued it was necessary to provide the proper environment … Continue reading History: Chicago School Didn’t Always Support the Banks
Just sayin'... Citigroup's "Massive" Tax Break by CalculatedRisk on 12/15/2009 11:11:00 PM The WaPo has an article about a tax break for Citigroup: U.S. gave up billions in tax money in deal for Citigroup's bailout repayment The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and … Continue reading Even when banks pay back, they get bailed out.
It's too early to tell, but a second leg of crisis could be just around the corner. It'll come as a surprise to most Americans, though. It always does. If you just read American newspapers, you might not know that financial markets around the world plunged over news that the government-owned Dubai World – upon … Continue reading Dubai Default: Nothing to see here, just move along.
From the FDIC (Federal Deposit Insurance Corp.) itself, a great brief history of banking failures in the 1920's and the Great Depression. see: FDIC: Managing the Crisis: The FDIC and RTC Experience. On average, more than 600 banks failed each year between 1921 and 1929. Those failures led to the end of many state deposit … Continue reading Banks Failures: The 1920’s and The Great Depression
via U.S. Bank Failures Exceed 100 for Year, First Time Since 1992 - Bloomberg.com. Oct. 24 (Bloomberg) -- U.S. regulators closed more than 100 banks in a single year for the first time since 1992, signaling the financial crisis hasn’t abated for lenders struggling with mounting losses tied to commercial real estate. Seven banks -- … Continue reading U.S. Bank Failures Exceed 100 for Year, First Time Since 1992 – Bloomberg.com
Wall Street hasn't learned and isn't repentant. We're likely to have another crisis. Maybe this year, maybe next. Maybe they keep it together for a few years. But sooner or later this house of cards falls. Derivatives is one of the dirty words of the financial crisis. Though these often-risky bets were blamed by many … Continue reading Bailed-Out Banks Haven’t Changed
Steven Pearlstein of the The Washington Post explains via this story in the Hamilton Spectator why the run-up in the stock exchange of the last 6 months isn' t necessarily a good thing. Instead of being a predictor of good times to come, the run-up in the stock market is more likely the latest in … Continue reading TheSpec.com – BreakingNews – New bubble created by U.S. policy
From the Huffington Post: Hmmm. This isn't exactly confidence inspiring. Tim Geithner's new nominee for number two at the Treasury Department, Neal Wolin, played a key role in drafting legislation in the late 1990s deregulating the banking system, a former Treasury Department official confirms to us. We aren't going to fix the mess in banking … Continue reading “Change”: I don’t think this word means what they think it means.