Banking Mammoths – Top 10 U.S. banks have $11 trillion of the $13 trillion in total banking assets. The problem? We have over 7,650 banks. The banking oligopoly leads to a concentration of wealth at the top.
The too big to fail problem is still an issue that needs to be dealt with even though many would like to ignore it like a big dark secret. The FDIC is holding up a system with $5.4 trillion in deposits and no deposit insurance fund. I know a lot of Americans have a hard [...]
The financial disaster of continuing to bailout commercial real estate through the shadows of Federal Reserve jargon. Why you haven’t heard of this trillion dollar bailout.
The media has done a fantastic job painting over the enormous sinkhole of a problem that is commercial real estate (CRE). U.S. banks hold over $3 trillion in commercial real estate loans on properties that were once valued at over $6 trillion. Today those values are down to roughly $3 to $3.5 trillion depending on [...]
Federal Reserve ultimate protector of the banking class – Fed Reserve sends a thank you to American middle class and world for bailing out the banks with a gift of inflation. MIT chart tracking millions of items shows much higher inflation than CPI.
The Federal Reserve has one clear mandate. That mandate involves protecting the biggest investment and commercial banks on Wall Street at the expense of the American people. This deflation of quality of life is being felt in the most clandestine and subtle ways like a shift in the wind. The Federal Reserve through archaic money [...]
Collective financial insanity – FDIC backing $5.4 trillion in total deposits on pure faith – US banking operating with negative deposit insurance fund and massive debt leverage. The greatest Ponzi scheme known in the financial world.
People psychologically are programmed to believe in financial realities that benefit their own cause even if they have no merit in empirical data. Many also forget that banks, especially the investment kind have a notorious track record of running amok when allowed to. The FDIC and US banking is a perfect example of a system [...]
Wall Street rally based on fantasy valuations and investment banking trading – S&P 500 back to 2007 valuations and up nearly 100 percent from March 2009 trough.
Wall Street has a way of sucking people back into a money losing vortex. With hedge funds using high frequency trading boxes the public has no chance in competing with these organized and sophisticated gambling casinos. It is amazing how quickly people forget. It was only in March of 2009 that the S&P 500 hit [...]
Financialization Era – how banking welfare captured our economy and ravaged the wealth of the working and middle class. Building profits through financial debt leverage.
The American banking system has transformed the economy into one enormous speculative casino with bells and whistles and free cocktails for those that participate. The problem of course is that most don’t have excess income to drop into the financial slot machines. Now banking in better times should be seen as the lubricant of the [...]
The Food Bubble – the financial cost of feeding the world. Feeding 219,000 more people every night. Wheat prices up 8 percent for the year.
The word bubble has taken on an entirely new meaning thanks to the global housing bubble. Yet we have experienced bubbles in other areas outside of real estate. During the 1990s the nation experienced a technology bubble. That was followed shortly by a housing bubble. Both of these have burst. Yet we still have other [...]
Economic chicanery – Social Security financial headwinds, another 395,000 Americans added to food stamp assistance in latest month of data, and manipulating the unemployment rate.
The dichotomous American economy is cracking like old paint into two distinct factions. For a few solid decades after World War II we had a burgeoning middle class, a smaller financial elite, and those who still struggled financially. The main objective however was to get as many people into the secure middle class. Today the [...]
Phoenix real estate market being held up by all cash buyers – 47 percent of Phoenix sales were from all cash buyers in December. The $1 priced Detroit home.
The Phoenix real estate market has collapsed after reaching a price apex in 2006. It is hard to imagine another market with similar real estate fundamentals but Las Vegas is a mirror image of foreclosure ridden Phoenix. These desert cities rose up during the housing bubble with plentiful and cheap land to expand on. Builders [...]