Busted: Bankers and The Global Economy

July 11, 2008

Banking Economy: More Stability and Danger

Wall Street Investment Bankers didn’t borrow from the emergency lending program of the Federal Reserve over the past week. Perhaps we are seeing signs of confidence or what is perceived as a lack of need. This creates additional hope as the banking community appears to be backing off of Federal Reserve funding.

Investment bankers failed to draw loans for the week ending July 9, borrowing $1.7 billion in the previous week, down from $6.1 billion the week before that.

Meanwhile, the regulatory prowess of the Federal Reserve is increasing as they work to initiate new rules that discourage assumption of safety in the banking community. Assumption coupled with false confidence is exactly led to the downfall of bankers and the U.S. economy, (more…)

July 10, 2008

Foreclosures Threaten to Consume Economy

Lately, it has been a cruel world for home buyers and banker types alike. The grim cloud of foreclosure hangs in the air like a dark panic. Today, politicians, Wall Street and media pundits spoke about what would happen if Fannie Mae and Freddie Mac were to collapse, revealing the fact that they are already effectively bankrupt. The fact that the president is openly discussing the plight shows the seriousness of the matter, even though he suggests that the potential of such a collapse is remote at best. The administration suggested that avoiding a collapse through the necessity of bailing out the government mortgage houses would create a U.S. (more…)

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