A Banking Crisis Shouldn’t Be the Taxpayer’s Problem.

Chairman and CEO of JPMorgan Chase, Jamie Dimon wrote shareholders about banking turmoil, “As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come.” IGI Global defines a banking crisis: 1. Banking crisis reflects the crisis of liquidity and insolvency of one […]

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The Wolves Are Devouring The Sheep

The Fed leaped into action when the Silicon Valley Bank (SVB) failed, and Congress quickly agreed they were derelict in their duties. No one asked why the Fed doesn’t act to keep us safe? The Fed’s website tells us: “What is the purpose of the Federal Reserve System? The Federal Reserve System,…’the Fed,’ is the central bank of the United […]

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Are All Banks Going Broke?

Shortly after the Fed bailed out the Silicon Valley bank depositors, Reuters reported that Credit Suisse failed: “ZURICH, March 20 (Reuters) – Credit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country’s gross domestic product, as part of their merger to buffer Switzerland against […]

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What Does the Fed Have to Break?

While Fed Chairman Jerome Powell appears determined to bring inflation down to their 2% target, inflation is far from under control. Pundits predict Powell will continue raising rates until something breaks. Recently Silicon Valley Bank (SVB), (and others) bellied up and depositors were bailed out by the FDIC. What has to break for the Fed to declare victory over inflation? […]

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Are We Really Screwed?

I am increasingly frustrated, wading through my weekly reading stack. It is maddening! Despite the recent fed action, inflation is soaring, prices are out of control. The economy is slowing, the stock market is tanking. The long-predicted results of outrageous government and central bank policies are coming home to roost. The signs were clear, anyone with common sense could see […]

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The Fed “Doth Protest Too Much.”

In 2010, The Huffington Post reported: “WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system. ‘If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved,’ Bernanke said Thursday while […]

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Banks Make Billions Printing/Lending Money When They Don’t Have To Worry About Being Paid Back!

Imagine a bank creating unlimited funds to lend, earning billions in fees and interest, with no worries about the borrower defaulting. It’s happening today – big time! This week’s reading stack began with a Wolf Street article, “Deep-Junk-Rated Carvana gets $4.5 Billion from New Investors, after Shares Collapsed by 79%….”. Despite regularly losing money and a deep junk bond rating, […]

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Bad Decisions Are Causing BIG Problems

Since the 2008 bank bailouts, readers regularly ask, “what the hell is going on?” I’m not an economist, but I’ll try to explain things – and it isn’t pretty. A major plank in problem-solving is, “Look at the consequences of your decisions, don’t let your solutions cause bigger problems.” “You can choose to ignore reality; but you cannot ignore the […]

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This Time IS Different

Asset prices soaring to ridiculous levels, well beyond anything regarding true, intrinsic values creates a bubble. Eventually things come crashing down. Those holding overpriced assets lose a lot of money and the ripple effect can cause economic hardship to many others. Ozak Durmus tells us about “Tulipmania“: “Tulipmania was the first major financial bubble. It happened in Holland between 1636-1637. […]

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