Bank failure – FDIC takes over Integrity Bank by Chris Martenson Another weekend and another bank failure. The FDIC estimates that the cost to its Deposit Insurance Fund will be between $250 million and $350 million. Bank failure – FDIC takes over Integrity Bank by Chris Martenson Another weekend and another bank failure. The FDIC estimates that the cost to its Deposit Insurance Fund will be between $250 million and $350 million.
GM cuts off their nose by Chris Martenson If I were to be exceptionally sarcastic here, I would note that it is lucky for GM and its dealers that there was 3.3% GDP growth last quarter. If I were to shrug off the GDP report as hopelessly inaccurate, I would observe that when an auto manufacturer cuts off a $2.1 billion dollar (annually!) distributor of its products over concerns about the financial health of that entity, then there is a deep recession underway. GM cuts off their nose by Chris Martenson If I were to be exceptionally sarcastic here, I would note that it is lucky for GM and its dealers that there was 3.3% GDP growth last quarter. If I were to shrug off the GDP report as hopelessly inaccurate, I would observe that when an auto manufacturer cuts off a $2.1 billion dollar (annually!) distributor of its products over concerns about the financial health of that entity, then there is a deep recession underway.
Prime foreclosures surge by Chris Martenson Wow, with three exclamation points. The fact that PRIME foreclosures have now moved past SUBPRIME foreclosures is a big deal. In case you don’t know, the Hope Now program is a government-sponsored affair that was initiated very early on in the housing/credit bust. Its intent was to help borrowers avoid foreclosure by renegotiating the terms of their deal(s). Prime foreclosures surge by Chris Martenson Wow, with three exclamation points. The fact that PRIME foreclosures have now moved past SUBPRIME foreclosures is a big deal. In case you don’t know, the Hope Now program is a government-sponsored affair that was initiated very early on in the housing/credit bust. Its intent was to help borrowers avoid foreclosure by renegotiating the terms of their deal(s).
Fuzzier than ever – GDP reported to be 3.3% by Chris Martenson A truly laughably fraudulent GDP report was released by the government today. However, we’re getting close to this just being a sad parody of Soviet crop reports of old, which were famous for being utterly out of alignment with reality. Fuzzier than ever – GDP reported to be 3.3% by Chris Martenson A truly laughably fraudulent GDP report was released by the government today. However, we’re getting close to this just being a sad parody of Soviet crop reports of old, which were famous for being utterly out of alignment with reality.
Record bank debt coming due by Chris Martenson And here’s the data I’ve been waiting for. To the exhaustive pile of new borrowing that the US government needs to shoulder, we can add $871 billion of debt that financial firms will need to somehow fund at the exact same time. I will be more than a little surprised if this does not result in either drastically higher interest rates, or massive inflation. Record bank debt coming due by Chris Martenson And here’s the data I’ve been waiting for. To the exhaustive pile of new borrowing that the US government needs to shoulder, we can add $871 billion of debt that financial firms will need to somehow fund at the exact same time. I will be more than a little surprised if this does not result in either drastically higher interest rates, or massive inflation.
Problem banks expand 30% by Chris Martenson It’s worth noting that not every bank on the problem list will fail, and not every failure will be on the list. To my knowledge, IndyMac was not on the list prior to failing. But the trend here tells us something meaningful; a 30% increase in problem banks in one quarter says we’re still in the early stages of this credit crisis. Problem banks expand 30% by Chris Martenson It’s worth noting that not every bank on the problem list will fail, and not every failure will be on the list. To my knowledge, IndyMac was not on the list prior to failing. But the trend here tells us something meaningful; a 30% increase in problem banks in one quarter says we’re still in the early stages of this credit crisis.
Home prices drop by Chris Martenson We’ve had damaging housing busts in the past, but they’ve always been contained to a specific region. Houston in the 1980’s and Florida in the 1920’s taught us that even a localized housing bust could spread ripples of discomfort far beyond their borders. This data showing that NO cities in the index saw a price gain deserves some notice. Home prices drop by Chris Martenson We’ve had damaging housing busts in the past, but they’ve always been contained to a specific region. Houston in the 1980’s and Florida in the 1920’s taught us that even a localized housing bust could spread ripples of discomfort far beyond their borders. This data showing that NO cities in the index saw a price gain deserves some notice.
Big three ask for bailout by Chris Martenson I know they’ve wrapped it in other language such as “retool to make more fuel efficient vehicles,” but the truth is that any money they receive will disappear into the black holes that reside at the center of each company. Besides the fact that they really should not have been caught unawares again, I think that GM, Ford, and Chrysler should provide clear plans for how they intend to return to profitability using taxpayer money. Big three ask for bailout by Chris Martenson I know they’ve wrapped it in other language such as “retool to make more fuel efficient vehicles,” but the truth is that any money they receive will disappear into the black holes that reside at the center of each company. Besides the fact that they really should not have been caught unawares again, I think that GM, Ford, and Chrysler should provide clear plans for how they intend to return to profitability using taxpayer money.
Home prices still not low enough to trigger real demand; more weakness ahead by Chris Martenson Even at this late stage, we still get these same tired articles, where the NAR churns out some statistics showing improving sales and the media tirelessly trumpets the results. As always, the fact is left out that bank repossessions and foreclosure auctions count in these results. Home prices still not low enough to trigger real demand; more weakness ahead by Chris Martenson Even at this late stage, we still get these same tired articles, where the NAR churns out some statistics showing improving sales and the media tirelessly trumpets the results. As always, the fact is left out that bank repossessions and foreclosure auctions count in these results.
Repo Man calls by Chris Martenson Even as the government stubbornly clings to the illusion that we are not yet in a recession (“Look! GDP is still positive and inflation is only 1%!), the anecdotes from the real world tell a very different story. By the time people are coughing up $300k boats and motor homes in “record amounts,” we are deep into recession territory. Repo Man calls by Chris Martenson Even as the government stubbornly clings to the illusion that we are not yet in a recession (“Look! GDP is still positive and inflation is only 1%!), the anecdotes from the real world tell a very different story. By the time people are coughing up $300k boats and motor homes in “record amounts,” we are deep into recession territory.
by hgrootveldgmail-com 
