GaryD

Worrying About Large-Deposit Bank Runs

Many of those withdrawals are company payrolls. Companies of any significant size that do their own payrolls need to maintain sizeable accounts, well beyond the FDIC maximum. The people running these companies aren't going to screw around with the risk of losing their payroll. They are going to put the money into Treasuries. The bubble in Treasuries is a whole different ball of wax. It all ends in a run on the dollar...

25 Ways to Tell a Banking System Is Unsound

27. Your bank gives you counterfeit bills

www.local6.com/news/16...

How Ivory Tower Economists Created the Housing Bubble

(1) If rents start to rise, the government economists will probably re-jig their calculations to show lower inflation. I doubt that they will ever over-report inflation. (2) It is always easier for the government to punish taxpayers than tax consumers because they complain less. My guess is that we are in for a good round of inflation in order to transfer wealth to the borrowers/lenders. They are, after all, the ones who play the game.

Latest Bank Headache: Home Equity Loans

That quote by Chuck Scharf is a joke. My brother-in-law worked at Citi when home equity loans first came out. They were told by senior management to push that crap and got big bonuses for doing so. At the time I thought that they were crazy to expect people to go out and get second mortgages on their homes to buy "stuff"; appararently I don't have a good grasp of human action. The bankers knew exactly what they were doing from the get-go. Now they want to blame the mortgage brokers, th government, the homeowners, anyone. They probably had a plan set up fifteen years ago that predicted a blow up, and a little chart that showed how they were going to pin the blame on everyone but themselves. Now they dump the crap on the fed, which amounts to a taxpayer bailout funded through inflation. What a crock. When do we get to tar and feather these guys?