President of the Federal Reserve Bank of Kansas City, speaks out about growing debt

The only Fed member to speak up and say the US must fix its growing debt problems or risk a new financial crisis was Thomas Hoenig, president of the Federal Reserve Bank of Kansas City.

Mr Hoenig said that rising debt was infringing on the central bank’s ability to fulfil its goals of maintaining price stability and long-term economic growth. “Stunning” deficit projections were putting political pressure on the Fed to keep interest rates low, infringing on its independence at the risk of inflation, he said.

The US budget deficit is projected to be $8,000bn in the next decade. Barack Obama, US president, recently lifted the government’s borrowing authority to $14,300bn.

Thats alot to swallow

Published in: on February 17, 2010 at 11:11 am  Leave a Comment  
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CIT received $2.3 billion in government aid last year, files for Bankruptcy

Dum, Dum, Dum

CIT group filed for bankruptcy on Sunday afternoon – but under a so-called prepackaged bankruptcy plan that will enable it to emerge from court protection by the end of the year, under the control of its debtholders.

CIT received $2.3 billion in government aid last year, a bailout that came in the form of preferred stock. That will almost certainly be wiped out in the bankruptcy process, the first realized loss in the government’s rescue of the financial system.

CIT was the nation’s largest provider of what is known as factoring, a type of lending used heavily by retailers. The company has spent months trying to reassure its clients that it will remain open for business as stores ramp up for the holiday season. Relatively few other companies serve as factors, and among them are other embattled lenders like GMAC.

Published in: on November 2, 2009 at 11:50 am  Leave a Comment  
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Bank Exec moves into $12 million beach front home, rent free!

This is a juicy story.

So, there was a forclosed home in Malibu which had been surrended to Wells Fargo.

The couple signed the property over to Wells Fargo last spring, and the bank subsequently denied requests to show the house to prospective buyers said a local real estate agent.

Well this is a very small and exclusive gated community and neighbours still look out for each other and was aware of the foreclosue, so they found it very weird that a car was often parked there, since last May

The neighbours then asked the guards who was always at the house and the guard gave them Guyton’s name as they had issued her a parking pass.

They got the number plate off the car and investigated.

It turns out the car was registered to a Cheronda Guyton a Wells Fargo senior vice president responsible for foreclosed commercial properties

CAUGHT!!!!

The nerve of that lady, yet a Genius in a strange way

I vertainly hope that Wells Fargo have paid off any bail out money

robber

Published in: on September 11, 2009 at 12:22 pm  Comments (1)  
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Timmy Geithner says: System ‘back from brink’

Timmy testified Thursday that the financial system has “stepped back from the brink,” allowing the government to wind down some programs designed to calm jittery markets. He said we need to go from rescuing the economy to repairing and rebuilding the financial system”

Not that I thrown a life vest or anything but, the first thing I’m doing is sending Merill Lynch this story, because judging by my 401k no one has told them yet.

He said that Treasury will:

•Not need to tap a $750 billion contingency fund budgeted earlier this year on top of last year’s $700 billion bailout fund. (Looks like they will need that money set aside for Health care)

•End a program this month to guarantee money market mutual funds, a program that once covered more than $3 trillion in fund assets. (The need the extra cash to cover the ear marks)

•Scale back to no more than $30 billion from $100 billion the amount that Treasury will ante up as part of a public-private program to buy toxic loans and investments from financial institutions. (Goody, I get to own more crap stuff)

He then goes on to say that the government wouldn’t make the mistake of declaring premature victory and putting “the brakes on too early.” As unemployment is still too high, the economy is weak, lending is still very low except for those fannie and Freddie Guys and businesses are still finding it hard to get credit.

Looks like I wont be sending Merrill Lynch this story after all. So what was the good news Timmy? I seemed to have missed it

geithner-stupid-785287

Swiss have the better Economy, U.S comes in second

Switzerland knocked the United States off the position as the world’s most competitive economy.

Why?

The crash of the U.S banking system left it wide open to be exposed to some serious weaknesses

Even though the Swiss Economy dipped into recession last year, too and had to bail out its largest bank UBS. But its economy is holding up better than many peers and most banks are relatively unscathed by the crisis, which drove U.S. banks into bankruptcy.

Anyone know of any jobs in Switzerland?

onedollardg0

Update: 84 Bank closures so far in 2009.

Regulators closed banks in California, Maryland and Minnesota on Saturday, pushing U.S. bank failures to 84 this year amid continuing fallout from the worst economic crisis since the Great Depression

piggy

Normally the bank closings should get me more upset, but I just saw my bank balance and its turns out I might actually owe some bank somewhere some money, so I’m eagerly awaiting to see if my back closes and I dont have to pay it back

Published in: on August 31, 2009 at 6:01 am  Leave a Comment  
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81 banks have failed so far this year and the prediction is many more to come.

Many of these banks that will fail will be smaller banks, which hinders the growth of the small business market and according to John Kanas whose private equity firm purchased BankUnited, at least 1000 banks will fail over the next two years

monopoly

Published in: on August 28, 2009 at 5:22 am  Leave a Comment  
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