Do as I say, not as I do.

So it looks like the government has gotten concessions out of private banks in regards to outstanding mortgage balances. According to USA Today  the settlement requires the five leading mortgage servicers to forgive at least $10 billion in principal that homeowners owe on mortgages. That will help underwater borrowers who owe more on their mortgages […]

Robin Hood is sick

This is nuts – but it’s just like all the other government Ponzi schemes.  I just read an article on CNN about the FDIC taking money from large banks in order to have enough funds to bail out failed banks – which have been mainly smaller banks. The article says  “A lot of large banks […]

The lesson of Ireland

In the NY Times today, Paul Krugman does a good job of explaining why Ireland is in deep trouble.  Unfortunately, Mr. Krugman draws the wrong conclusions from the Irish experience – he thinks we need to nationalize banks, when the lesson to learn is to not bailout private banks. Mr. Krugman says Last September Ireland […]

Bernanke’s Interview

Like many of you, I just watched Helicopter Ben’s interview in 60 Minutes.  Here’s a quote from the transcript on 60Minutes.com that struck me: Asked if it’s tax money the Fed is spending, Bernanke said, “It’s not tax money. The banks have accounts with the Fed, much the same way that you have an account […]

Why AIG blew up

The NY Times has a good article today which examines why we’re stuck paying hundreds of billions in bailouts to AIG.  The article is titled Propping Up a House of Cards. It’s a good article, and it does a good job of explaining what happened, but I think it draws the wrong conclusion.  The NY […]

Will the banks survive?

Fortune has a good article today that talks about the causes and potential solutions of the banking crisis.  I disagree with their conclusions, but the article does a good job of explaining the risks that the banks are facing – and getting ready to face. How can it be that the banks are tottering after […]

FDIC Friday – 2 more banks failed

If it’s Friday, there must be a bank failure….  The FDIC shut down two more banks yesterday, bringing the total of failed banks to 15 for the year. In case you’re wondering, I think this is a good thing.  It’s what we should be doing with all the failed banks.  Instead, we’re spending billions to […]

FDIC increases insurance rates to banks

This just in from the FDIC – banks will now pay more for FDIC insurance for depositors.  To which I say – Duh! When you get home insurance in Florida, you’re going to pay more than you would for the same priced home in say, Tennessee.  That’s because Florida is riskier from an insurance perspective […]

Is Bernanke playing dumb?

It’s hard to believe that Federal Reserve Chairman Ben “Helicopter” Bernanke is actually as dumb as his statements make him sound.  In his testimony to the Senate today, he said that if the government purchases common shares in banks, that it “may or may not” have an impact on shareholders. Has he never heard of […]

Just another FDIC Friday

In what has become a Friday tradition, three (I posted this too soon) four more banks bite the dust.  MarketWatch.com has this story on today’s edition of  FDIC Friday. (Added at 9:54pm ET – I posted the FDIC Friday story too soon.  MarketWatch hasn’t updated the story yet, but Pinnacle Bank in Beaverton OR was […]