Busted: Bankers and The Global Economy

January 13, 2009

July 17, 2008

U.S. Fed Discusses the Real Economy

Recently, the Fed discussed the housing market and economic slump in its’ latest open meeting. Currently, the housing market is one of the single largest factors in the U.S. economic decline. According to the Fed, the outlook for the housing market remained bleak, with falling prices, slow sales, high inventories of unsold homes, and further declines in construction activity over coming months.

Despite level borrowing from the Fed, mortgage rates have been increased and foreclosures continue to rise in the United States. Falling wealth and real income, tightening credit conditions, rising energy prices, and sharply declining consumer sentiment were seen as likely to restrain consumer spending later this year, particularly after the effects of the fiscal stimulus trail off.

The economic stimulus as dispensed (more…)

July 3, 2008

June 19, 2008

FBI Begins Kicking Booty in Banker Fraud

The Federal Bureau of Investigation isn’t wasting time. America needs some fall guys. Who better than lying and scheming financial salesmen? Finally, crooked bankers, financial gurus and investment brokers should be shaking in their boots. The FBI is on the stick and hasn’t been wasting much time. Obviously, the preponderance of evidence is huge or the government wouldn’t moving this quickly. Previously, the FBI stated that the first arrests could have taken two years or more.

The first criminal cases of the credit crunch are two former Bear Stearns hedge fund managers, Ralph Cioffi and Matthew Tannin. The men allegedly misled investors in two funds that collapsed last summer on mortgage-backed securities.

Why fall guys you ask? The FBI will have to be up on their numbers (more…)

June 10, 2008

What are the Feds Doing with Stimulus Money?

President Bush signed the Economic Stimulus Act of 2008 back on February 13, calling his stimulus idea a “booster shot” for the American economy. At the signing ceremony, Bush stated, “The bill I’m signing today is large enough to have an impact, amounting to more than $152 billion this year, or about 1 percent of the GDP (gross domestic product).”

At that time, the government mandated that checks be issued to qualified citizens through May. The process has dragged on through June. Some Americans have not received their promised stimulus payments through the Internal Revenue Service.

Barack Obama is circling the country in a two-week campaign. He is proposing that lawmakers should inject another $50 billion immediately into the sluggish U.S. economy. Mr. Obama noted the largest monthly increase in the unemployment rate in over 20 years. He intends to use his position in the Senate to generate a movement for “another round of fiscal stimulus, an immediate $50 billion to help those who’ve been hit hardest by this economic downturn.”

Mr. Obama supports the expansion and extension of unemployment benefits, as well as a second round of tax rebate checks. “Relief can’t wait until the next president takes office.”

Federal unemployment benefits for people out of work are usually limited to 26 weeks. A movement of Democrats wants to add another 13 weeks plus an additional 13 weeks in states with unemployment of 6% or more. President Bush has previously been against extending unemployment benefits, preferring to bail out imprudent banks and mortgagers.

On June 6, the Treasury Department reported that it has sent out nearly 67 million in stimulus payments worth approximately $57 billion. Now the important question comes to mind. The stimulus package was advertised as a $152 billion stimulus. Where is the remaining $95 billion stipulated by the first stimulus plan?

Now, we are talking about a new stimulus plan as if the first stimulus plan is complete. Where did the money go? What is Washington up to? Is the stimulus a straw dog of sorts? Has economic stimulus become mere hype?

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February 20, 2008

Time to Pay Attention

Filed under: banking, credit, federal reserve, government, investment, money — Tags: , , , , , , , , , , — digitaleconomy @ 9:54 am

Isn’t it amazing? There are so many recession articles admonishing caution and cutbacks, expelling their legendary wisdom: more than six months after recession and after the recession is already well under way. If you were a patient, you would have died already. It is almost as if everyone was mysteriously asleep at the wheel until the United States screamed “uncle”. Now the writers come bearing their sage advice (more…)

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