Busted: Bankers and The Global Economy

March 8, 2009

Bailout Fever Meets with Resistance

bank-bailoutBailout fever is no longer the style as the Senate Banking Committee, notably Republicans, are rising up against the prospect of moral hazard.

Read article on Associated Content by E. Manning

July 16, 2008

Recovery Slow in U.S., Inflation Out of Control

For some time, the Fed has remained hopeful of a quick recovery, despite lingering signs of trouble. The Fed is lining up with the current reality. Ben Bernanke is fighting hard to keep the economy growing with fighting inflation as his top priority per his testimony before the Senate Banking Committee. He still refuses to admit that the U.S. economy is in a recession. His goal is to strengthen the economy over the strength of the dollar. He is uncertain about the value of a second economic stimulus move.

Because of the turmoil in the economy and banking industry, Bernanke has flagged his optimism somewhat, announcing that growth will eventually pick up over the next two years.

Years ago, no one would have expected oil futures to be running the economy, yet (more…)

July 15, 2008

Lending Crisis and Fingers of Blame

It is true that very few people actually want to be responsible in the public eye for scandal of any kind. The lending and mortgage crisis that started in the U.S.A. is one more example. Considering that a man or woman in America is supposed to be innocent until proven guilty, you’d never know it to hear the mood in good old U.S.A. Finger pointing is all the rage, trial by public accusation.

Charles Schumer, a ranking member of the Senate Banking Committee, recently penned a letter which created a panic sensation for the bank and the FDIC. IndyMac was focus of a June 26 letter announcing Schumer’s concern about financial deterioration at the bank that was formerly a hingepin for Countrywide Mortgage in the mortgage market. Schumer claims that his letter was old news. That depends who you ask.

The FDIC was inflamed by leaked news that stirred panic overtones. The Office of Thrift Management immediately began fuming. They admitted that the bank was in distress, but (more…)

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