The Daily Graphic: 2009 U.S. Bank Failures Already More Than First Year of Recession
Text: Letter from Chrysler’s Nardelli to Canadian Auto Workers
(Source: Financial Post)
A Message from Tom LaSorda and Bob Nardelli
Dear Employees,
Today, we are at a crossroads in the history of Chrysler. Let’s take a look at what’s happened in the past few weeks.
On February 17 and February 20, Chrysler submitted its Viability Plan to the U.S. Treasury and U. S. Administration; and to the Canadian governments, respectively.
On March 30, U.S. President Barack Obama stated that Chrysler’s Viability Plan was unacceptable. “It’s with deep reluctance but also a clear-eyed recognition of the facts that we’ve determined, after careful review, that Chrysler needs a partner to remain viable.”
The Daily Graphic: They Missed the Recession
With Failure of Missouri Bank, U.S. One Failure Away from 2008 Tally
The twenty-fourth U.S. bank failure of 2009 occurred this evening when the American Sterling Bank, Sugar Creek, Missouri was seized by federal regulators.
Metcalf Bank of Lee’s Summit, Missouri will assume the deposits and former American Sterling offices will begin reopening on Saturday as Metcalf Bank branches.
According to a press release by the Federal Deposit Insurance Corp., the government agency which insures depositors for up to $250,000 and regulates member institutions, the Metcalf Bank acquisition of American Sterling was the least cost option. The estimated cost to the FDIC’s Deposit Insurance Fund is $42 million.
In 2008, the number of failed U.S. banks hit 25, the highest number in any year since the Failed Bank List began to be posted on the Internet. Since the current recession began, 49 banks have failed. Sixty-four percent of banks which have failed since October 2000 have failed during this recession.
The Daily Graphic: Bankers and Brokers Not The Only Ones Living on Other People’s Money
I’ve done a lot of bashing of the Merril Lynchs, AIGs and Banks of America of the world and their role in the U.S. financial crisis. While I’m at it, why don’t I just add the ratings agencies and every politician in Washington to that free market for the investment class dogpile.
What doesn’t get enough attention is the fact you, me, our family, friends and neighbors have been fueling the false economy that’s come down around us. The fuel has been easy credit and the accelerant has been Americans’ insatiable appetite for more, bigger and better things. The chart below is from the New York Federal Reserve Bank and shows how Americans’ financial obligations have grown over time. I would imagine the upward trend in the top chart beginning around 2000 is the housing bubble effect – how much equity did you take out of your house when it was worth 20 to 40 percent more than it is today?
Full Text: President Obama Georgetown Speech on Economic Strategy – “The House Upon a Rock”
(Source: White House)
It has now been twelve weeks since my administration began. And I think even our critics would agree that at the very least, we’ve been busy. In just under three months, we have responded to an extraordinary set of economic challenges with extraordinary action – action that has been unprecedented in both its scale and its speed.
I know that some have accused us of taking on too much at once. Others believe we haven’t done enough. And many Americans are simply wondering how all of our different programs and policies fit together in a single, overarching strategy that will move this economy from recession to recovery and ultimately to prosperity.
Video: Biden – “There will continue to be job losses …”
Video: Tim Geithner Talks Economic Recovery on Face the Nation
Text: President Obama Weekly Address – G20 Accomplishments, NATO – April 4
(Source: White House Press Office)
In this new century, we live in a world that has grown smaller and more interconnected than at any time in history. Threats to our nation’s security and economy can no longer be kept at bay by oceans or by borders drawn on maps. The terrorists who struck our country on 9/11 plotted in Hamburg, trained in Kandahar and Karachi, and threaten countries across the globe. Cars in Boston and Beijing are melting ice caps in the Arctic that disrupt weather patterns everywhere. The theft of nuclear material from the former Soviet Union could lead to the extermination of any city on earth. And reckless speculation by bankers in New York and London has fueled a global recession that is inflicting pain on workers and families around the world and across America.
I’m An Obama Supporter and This Is An Example of Why It Makes Me Sick That Summers and Geithner Are in Charge of Economy
From the Washington Post tonight:
Lawrence H. Summers, one of President Obama’s top economic advisers, collected roughly $5.2 million in compensation from hedge fund D.E. Shaw over the past year and was paid more than $2.7 million in speaking fees by several troubled Wall Street firms and other organizations. …
… But Summers — who, as chairman of the National Economic Council, is a leading architect of the administration’s economic policies and helped shape the response to the global recession — appears to have collected the most income. Financial institutions including JP Morgan Chase, Citigroup, Goldman Sachs, Lehman Brothers and Merrill Lynch paid Summers for speaking appearances in 2008. Fees ranged from $45,000 for a Nov. 12 Merrill Lynch appearance to $135,000 for an April 16 visit to Goldman Sachs, according to his disclosure form. Summers reported donating two fees totaling $70,000, including the payment from Merrill Lynch, to charity.
Is it any wonder that the investment class who brought us this Great Recession and blow up of the U.S. financial system is getting off Scot-free with taxpayer bailouts? Larry Summers who brought us the repeal of Glass-Steagal. Tim Geithner who brought us TARP, the original $700 billion bailout.
The point is that there are fundamental problems with what is considered economic activity that delivers real value. Are creatures of Wall Street the right folks to be deciding what a new economic playing field should look like? For instance, what limits should there be on securitization? What should be allowed to be securitized? Should insurance companies be allowed to sell insurance but not call it insurance so it’s not regulated? How much is too much leverage? Etc.
We know what Wall Street’s answers are to these questions. We know that Summers and Geithner are tools of Wall Street. So, we know with them as our economic brain trust we’re fucked — unless of course we’re trading, banking or insuring.
The Daily Graphic: Recession or Depression?
The Federal Reserve Bank of St. Louis has an excellent economic resarch area which includes links to all of their publications. One of their offerings is Economic Synopses. The graphic below comes from the latest of these short articles on current economic topics. This one is titled, Recession or Depression and was authored by Kevin L. Kliesen.
Govt Releases Signs That Economy May Have You Down
From the HHS site, Getting Through Tough Economic Times:
It is important to be aware of signs that financial problems may be adversely affecting your emotional or mental well being –or that of someone you care about. These signs include:
- Persistent Sadness/Crying
- Excessive Anxiety
- Lack of Sleep/Constant Fatigue
- Excessive Irritability/Anger
- Increased drinking
- Illicit drug use, including misuse of medications
- Difficulty paying attention or staying focused
- Apathy – not caring about things that are usually important to you
- Not being able to function as well at work, school or home
The Daily Graphic: Failed U.S. Banks, 2000 – March 27, 2009
In only 3 months this year, 21 federally insured U.S. banks have failed. In all of last year 25 failed. The latest this week was Omni National Bank, Atlanta, Ga. Data to build the chart comes from the Federal Deposit Insurance Corp.’s Failed Bank List.
The Daily Graphic: 2008 – 2009 Percent Change in Single Family Home Prices
Click Graphic For Full Size
The Daily Graphic: Vacant Homes, 1965-2008
From the Congressional Budget Office’s latest Update of Budget and Economic Outlook:
The Daily Graphic: The Economic Downturn in Graphics
I found this page at the BBC. Titled the Economic Downturn in Graphics, it includes several graphics like those pictured below. Go check it out by following the link above or clicking on either of the two graphics below. Pay special attention to the U.S. bank bailouts picture below. We all decry the the $700 billion bailout bill from last fall. The amount of skin the Federal Reserve has in the game is staggering. Who watches or holds accountable the Federal Reserve?
Obama to Lobbyists: Submit Your Thoughts in Writing
If reality aligns with rhetoric, there is change occurring in Washington.
In a speech today before state legislators meeting in Washington, D.C., President Barack Obama talked about the recently enacted economic stimulus program. Specifically, he addressed how decisions should be made regarding stimulus dollars and the role of lobbyists.
From Obama’s remarks:
They will not be made as a way of doing favors for lobbyists. Any lobbyist who wants to talk with a member of my administration about a particular Recovery Act project will have to submit their thoughts in writing, and we will post it on the Internet for all to see. (Applause.) If any member of my administration does meet with a lobbyist about a Recovery Act project, every American will be able to go online and see what that meeting was about. These are unprecedented restrictions that will help ensure that lobbyists don’t stand in the way of our recovery.
