The era of mega banks – The growth of too big to fail. American banking system still backing over $13 trillion in assets with a negative deposit insurance fund. 7,760 banks but 19 banks make up 50 percent of the asset base.
The growth of the too big to fail bank is something that is modern to this era. In the 1990s there were fewer than 40 institutions that had total assets above $20 billion. In the late part of the 1980s and 1990s this number was below 20. The peak was reached in 2005 with 55 […]
Catch 22 economics – The U.S. economy has 7,400,000 less workers than the peak in late 2007 yet nominal GDP is at a record. What does that mean for those without jobs?
The Friday jobs report was significant for a variety of reasons but one key theme is that it shows the true fragility of the state of the economy. Even though it was a net add of 39,000 jobs we need to remember that the nation needs to add roughly 150,000 jobs per month just to […]
The con of the century – Federal Reserve made $9 trillion in short-term loans to only 18 financial institutions. Since 2000 the US dollar has fallen by 33 percent. The hidden cost of the bailouts.
The Federal Reserve released a stunning report showing the details of bailouts that occurred during the peak of the credit crisis. They won’t call it “bailouts†but giving money when others won’t is exactly that. What the report shows is that the Fed operated as a global pawnshop taking in practically anything the banks had […]
The shadow bailout of the commercial real estate industry – bailing out the Ritz, failed million dollar unit condo projects, and buying empty shopping malls. Why the Fed wants to destroy the US dollar and continue the failed bailouts of the banking sector.
It is amazing that so little information about commercial real estate has made it onto the mainstream media. Few in the public realize that commercial real estate (CRE) has actually fallen harder than residential real estate yet 99.9 percent of all media coverage has been strictly on residential real estate. The CRE market is enormous […]