Oh, don't worry the banks will be able to earn their way out of this mess. Oh, don't worry we are not like Japan in 1990's. Oh, don't worry we don't TARP will be enough to take care of the problem.
Financial sector is broke. It was broke when TARP passed and its broke now. But Washington and Wall Street don't want to recognize it. Why? Because it will mean pissing off the financial oligarchy.
There are many ways to loot a corporation. All the more reason big shareholders need to be watchdogs, not sleeping dogs. If you stand to gain big fees/ bonuses, you can more easily be persuaded that there is "synergy" in a merger or acquisition.
Frank T.
I need it in historical context, say raw numbers, %'s from 1945 to 2009 or from 1995 to 2009.
But it does seem the conservative rant has a major point (as most noted by the smaller banks just left out in the cold, holding defaulting mortgages with no recourse, while Zombie banks get saved, regardless of their piss poor management and the actual real amount of never recoverable liabilities)..
anywho, the major conservative rant being U.S. government is ignoring small business and it's crashing and burning.
that entire culture, where let's say you're getting royally screwed somewhere....someone will tell you to smile, be polite, don't react, most of all do not express any anger...for you don't want to burn your bridges or alienate someone, (God forbid!) or even worse, some sort of philosophy out there believing the economy is psychological, therefore one must promote belief in order to boost that consumer economy.
Well, the reality is the consumer economy is over! They tapped it out plus put everyone and the nation in debt for decades. What we need is a production economy, what we need is good jobs, massive increases in income, paychecks, wages. We need to make things, not just consume things.
I've thought for a long time that the destruction of the middle class eventually will pull the entire economy down and from the graphs on unemployment, wages, hours worked, numbers on food stamps, the beyond belief income inequality...
This might well be the inflection point.
They still are not doing true Keynesian, which was to put money into the pockets of workers, i.e. increase income.
A focus on wages, on workers, on the middle class....
now if we can analyze the need for this from a macro economic view, from a strategy of long term economic growth, ....maybe we will get heard?
It seems like when one talks about the general economic state of the middle class, not only is that ignored in D.C. it's almost "poo poo ed", as if the citizens, beyond demanding everyone shop, get little attention at all on the very obvious...
people need a paycheck and one that pays the bills and then some.
If the U.S. could get a WPA, I would hope it would be a strategically wise WPA, CCC in terms of projects.
I think the nation has been taking all of those public works for granted and now 75 years later, they are crumbling in many cases.
I think this article highlights a lot of important data and makes several good points concerning the potential for wage deflation, but I respectfully disagree with the claim that deflation is "deadly."
I actually think that in this case deflation is a good thing. It may not be good for the politicians in power, but the current standard of living for the large majority of people in this country is no longer sustainable, and is reliant upon too much debt. And the longer everyone tries to maintain this standard by creating more debt to fund it, the worse things will ultimately get when the debt must be repaid.
But since our government and financial elite remain in power and they continue to try to reflate the debt bubble, the average person is caught in a vicious cycle and has very few ways to protect himself. That is why I continue to advocate investing in gold related assets, which have proven throughout history to do well in times of high deflation and high inflation.
and now CNN is "fact" checking but of course the "fact checking" is ignoring the details outside of a particular clause which defeat that particular clause
(i.e. one can have something in a bill, but let's say another piece of legislation in that bill or elsewhere, prohibits that clause from being implemented....makes the clause being discussed "just for show").
But I've been staying out of it, watching our insurance company lobbyists spin, craft and gut...
I mean Daschle on TV representing health care reform when he is now the insurance companies main lobbyist?
Please, this is everything wrong with the Democratic party.
Then we have others who clearly are lobbyist stooges with the really far out there stuff on "that's socialism" and so forth that ...well, I don't know why they should get air time with it, why promote more so far out there arguments, give them any credence?
What a zoo, all designed to kill anything which might limit this sectors profits and they could care less if they bring the entire U.S. economy crashing down...never mind about people.
will be a complete give away to private insurance (Big Pharma already got its deal). The Senate Finance Committee version with co-ops is a joke. Co-ops won't do anything to bring down the cost of health care.
This hit, hard...many upper middle class, but not super rich, investors and is one of the contributing factors to the S&L crisis.....
So, considering the above numbers vs. a major tax shelter change that caught hundreds of thousands of CRE investors with their pants down in the 1980's....
I think this news deserves it's own historical analysis blog post.
Commercial real estate delinquencies (7.91%) are rising rapidly, and are at the highest rate since the early '90s (as delinquency rates declined following the S&L crisis).
Residential real estate (8.84%) and consumer credit card (6.7%) delinquencies are at the highest levels since the Fed started tracking the data (since Q1 '91).
In the July survey, domestic banks indicated that they continued to tighten standards and terms over the past three months on all major types of loans to businesses and households, although the net percentages of banks that tightened declined compared with the April survey. Demand for loans continued to weaken across all major categories except for prime residential mortgages.
Tighter credit and less demand for it. Does this really sound like Green Shoots to you?
Lower prices and government tax credits for first-time buyers have stabilized home sales, setting the stage for builders to gradually step up construction from record lows. Job losses, rising foreclosures and tight credit are a reminder that any recovery in housing will be slow to develop, limiting sales at builders such as D.R. Horton Inc. and Pulte Homes Inc.
“Inventory is being cleared and that is starting to benefit the new-home market,” said Julia Coronado, a senior U.S. economist at BNP Paribas in New York. “With a few months lag, that will lead to a turnaround in construction activity.”
Tell me they are not trying to rebuild the housing bubble. Someone tell me that with projected 3.2M foreclosures this year.
I've read huge bonuses for mergers/acquisitions, then you get corporations making huge acquisitions which do not make sense financially or strategically and hurt the corporation in a long term strategy move.
Pre-IPO of the "dot con" era...it was astounding, one company was bankrupt in something like a year and a half from launch, yet they were forced to pay two executives 3 million a year....for life...regardless of the collapse and the complete fiction of the business model.
It's also eating up in actual corporate profits....i.e. hurting the corporate earnings which is a direct hit on shareholders at minimum.
Oh, don't worry the banks will be able to earn their way out of this mess. Oh, don't worry we are not like Japan in 1990's. Oh, don't worry we don't TARP will be enough to take care of the problem.
Financial sector is broke. It was broke when TARP passed and its broke now. But Washington and Wall Street don't want to recognize it. Why? Because it will mean pissing off the financial oligarchy.
RebelCapitalist.com - Financial Information for the Rest of Us.
There are many ways to loot a corporation. All the more reason big shareholders need to be watchdogs, not sleeping dogs. If you stand to gain big fees/ bonuses, you can more easily be persuaded that there is "synergy" in a merger or acquisition.
Frank T.
Interesting that this report surfaces after the "strategic" meeting between U.S. and China.
RebelCapitalist.com - Financial Information for the Rest of Us.
I need it in historical context, say raw numbers, %'s from 1945 to 2009 or from 1995 to 2009.
But it does seem the conservative rant has a major point (as most noted by the smaller banks just left out in the cold, holding defaulting mortgages with no recourse, while Zombie banks get saved, regardless of their piss poor management and the actual real amount of never recoverable liabilities)..
anywho, the major conservative rant being U.S. government is ignoring small business and it's crashing and burning.
This is all a massive conspiracy by the evil NAR! And Bloomberg is guilty of it too! They're always trying to keep the jam away from the little guy.
that entire culture, where let's say you're getting royally screwed somewhere....someone will tell you to smile, be polite, don't react, most of all do not express any anger...for you don't want to burn your bridges or alienate someone, (God forbid!) or even worse, some sort of philosophy out there believing the economy is psychological, therefore one must promote belief in order to boost that consumer economy.
Well, the reality is the consumer economy is over! They tapped it out plus put everyone and the nation in debt for decades. What we need is a production economy, what we need is good jobs, massive increases in income, paychecks, wages. We need to make things, not just consume things.
know that people usually read the first couple lines of a story and move on. Gloomy readers are bad for business.
RebelCapitalist.com - Financial Information for the Rest of Us.
Ah, what a series of references put together in a coherent post will do. Thank you again midtowng...
Seeking Alpha article recommending this post, markets taking a breather or change in direction?
They should read your market is for suckers post, Ultimate Stock Market Sucker's Rally.
We do not allow what is called referrer spam on EP. PERIOD. So, trying to peddle some "gold site" which is promoting some product...buy an ad.
Accounts are for participating in discussion, only.
EPer's, if you see such a post, comment, whatever, please troll rate it and you might also alert me so I can ban that user.
Restore the link between wages and productivity!
RebelCapitalist.com - Financial Information for the Rest of Us.
I've thought for a long time that the destruction of the middle class eventually will pull the entire economy down and from the graphs on unemployment, wages, hours worked, numbers on food stamps, the beyond belief income inequality...
This might well be the inflection point.
They still are not doing true Keynesian, which was to put money into the pockets of workers, i.e. increase income.
A focus on wages, on workers, on the middle class....
now if we can analyze the need for this from a macro economic view, from a strategy of long term economic growth, ....maybe we will get heard?
It seems like when one talks about the general economic state of the middle class, not only is that ignored in D.C. it's almost "poo poo ed", as if the citizens, beyond demanding everyone shop, get little attention at all on the very obvious...
people need a paycheck and one that pays the bills and then some.
If the U.S. could get a WPA, I would hope it would be a strategically wise WPA, CCC in terms of projects.
I think the nation has been taking all of those public works for granted and now 75 years later, they are crumbling in many cases.
I think this article highlights a lot of important data and makes several good points concerning the potential for wage deflation, but I respectfully disagree with the claim that deflation is "deadly."
I actually think that in this case deflation is a good thing. It may not be good for the politicians in power, but the current standard of living for the large majority of people in this country is no longer sustainable, and is reliant upon too much debt. And the longer everyone tries to maintain this standard by creating more debt to fund it, the worse things will ultimately get when the debt must be repaid.
But since our government and financial elite remain in power and they continue to try to reflate the debt bubble, the average person is caught in a vicious cycle and has very few ways to protect himself. That is why I continue to advocate investing in gold related assets, which have proven throughout history to do well in times of high deflation and high inflation.
Wage deflation is not in the vocabulary of policy makers.
All is well as long as you have a strong financial oligarchy - the oligarchs will save us.
LOL
RebelCapitalist.com - Financial Information for the Rest of Us.
and now CNN is "fact" checking but of course the "fact checking" is ignoring the details outside of a particular clause which defeat that particular clause
(i.e. one can have something in a bill, but let's say another piece of legislation in that bill or elsewhere, prohibits that clause from being implemented....makes the clause being discussed "just for show").
But I've been staying out of it, watching our insurance company lobbyists spin, craft and gut...
I mean Daschle on TV representing health care reform when he is now the insurance companies main lobbyist?
Please, this is everything wrong with the Democratic party.
Then we have others who clearly are lobbyist stooges with the really far out there stuff on "that's socialism" and so forth that ...well, I don't know why they should get air time with it, why promote more so far out there arguments, give them any credence?
What a zoo, all designed to kill anything which might limit this sectors profits and they could care less if they bring the entire U.S. economy crashing down...never mind about people.
will be a complete give away to private insurance (Big Pharma already got its deal). The Senate Finance Committee version with co-ops is a joke. Co-ops won't do anything to bring down the cost of health care.
Single payer still the best option.
RebelCapitalist.com - Financial Information for the Rest of Us.
Looks like grass killer is being sprayed all over the green shoots lawn!
Good God, this needs it's own blog post. That's an incredible rate of delinquencies.
I should note that in 1986, Tax Reform Act of 1986, removed a lot of CRE tax shelters.
This hit, hard...many upper middle class, but not super rich, investors and is one of the contributing factors to the S&L crisis.....
So, considering the above numbers vs. a major tax shelter change that caught hundreds of thousands of CRE investors with their pants down in the 1980's....
I think this news deserves it's own historical analysis blog post.
Calculated Risk notes a new Fed report.
Meanwhile, banks continue to tighten credit standards.
Tighter credit and less demand for it. Does this really sound like Green Shoots to you?
Thank you Naked Capitalism for the link.
We love NC, esp. the bail out, Fed, derivatives coverage.
Yes, isn't this post a huge disconnect from what we are hearing on the housing market in the MSM?
Charts don't lie!
Homebuilder Confidence in U.S. Rises to One-Year High:
Tell me they are not trying to rebuild the housing bubble. Someone tell me that with projected 3.2M foreclosures this year.
I've read huge bonuses for mergers/acquisitions, then you get corporations making huge acquisitions which do not make sense financially or strategically and hurt the corporation in a long term strategy move.
Pre-IPO of the "dot con" era...it was astounding, one company was bankrupt in something like a year and a half from launch, yet they were forced to pay two executives 3 million a year....for life...regardless of the collapse and the complete fiction of the business model.
It's also eating up in actual corporate profits....i.e. hurting the corporate earnings which is a direct hit on shareholders at minimum.
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