NOT SATIRE: FDIC Preps for Bank Failures
Does Wilmington Trust have enough dough on hand if everyone suddenly decides they want to convert all those electronic ones and zeros into cash?
Hold it. As a country we have a negative savings rate so there can’t be runs on banks.
Right?
h/t Atrios.
Well, I have been calling it for some time now that there is a depression going on out there that we are refusing to admit. Makes me wish I never did so well in economic forecasting and I still hope I am wrong.
Me thinks this is a good thing. I’d rather the gov’t be prepared than unprepared: think Katrina, Iraq, subprime mortgages, etc.
Someone answer a question for me. Why does Cheney have a media event yesterday to discuss financial issues and no media news?
Not good.
Speaking of debt, one of the most material issues facing state and federal auditors is the “accounts receivable” carried by credit card companies as an asset. If all truly uncollectible debt was taken away from the asset column of these companies, the financial hit to the economy would rival or even beat the non-comforming mortgage default.
This is called the difference between production and a service economic structure. It is the difference between Milton Friedman and his Chicago nazi’s and Adam Smith and his hard working Americans.
the “accounts receivable” carried by credit card companies as an asset.
I think the only way out of this is through substantial inflation, and I think the Fed knows it and is planning to let it happen. Modest inflation is not a bad thing for the middle class because it lets them pay down their debts with cheaper money. But first US business has to break their resistance to wage inflation.
And the investor class will fight it tooth and nail because they want a hard-money cheap-labor policy; they don’t want to get paid back in cheaper dollars. Their resistance will only break if their investments tank and they would rather be paid back in inflated dollars instead of not getting paid at all.
Dear Investor class,
If you want us all to be China but are unwilling to admit it but willing to fuck the people to do it, there is another way. I mean just admit it, get it over with and we can all start living in a smiling happy land.