Freedom Thinker

Bank Failures Forecast to Increase This Year

Like Badgolfer I wonder what this affect will be on the overall economy. Is main street insulated? FDIC yes but let's say 400-500 banks fail how many go unemployed and what is this affect on other industries? Have the right sized enough to continue with this apparently new paradigm of spending and unemployment? This is great stuff but it raises more questions then it answers in my mind. None the less thanks for a great analysis.

A Puzzle: China and Treasuries

Great article! Very detailed and informed. I agree with your analysis. These treasury yields are silly. There is no way inflation will be that low that far in the future. There must be a run on treasuries. This will hurt China unless they continue to buy them up until they are ready to make a move? Sooner rather then later I think. When this happens the only option for our government is printing money or taxing. A lot of financial firms will be hurt for their holdings in treasuries as well.