Since the end of June 2011, excess reserves held by commercial banks have declined by about $107 billion. (Remember in August 2008 when excess reserves in the banking system totaled only $2.0 billion…for the whole banking...
Read More“European leaders’ blueprint for a closer fiscal union to save their single currency left the onus on central bankers to address investor concerns that Italy and Spain would succumb to the two-year-old financial...
Read MoreI must admit to being wrong.I believed that the big cash buildup at corporations would be used to fuel a mergers and acquisitions binge.I thought that the economic recovery was strong enough that the “better off”...
Read MoreThe president, the press, and the political pundits focus on the unemployment rate in November as it dropped to 8.6 percent of the workforce, a drop from 9.1 percent in October. However, under-employment still remains in the...
Read MoreHere we go again!The central banks acted yesterday and the markets went wild!Six central banks acted in concert to make sure that European banks…and others…could get dollars if they wanted them.This is a liquidity...
Read MoreCheck out the Wall Street Journal article “Ax Falls at Smaller Banks.” (http://professional.wsj.com/article/SB10001424052970203764804577060752595022804.htmlmod=ITP_moneyandinvesting_0&mg=reno-secaucus-wsj) And,...
Read MoreA debt crisis for an organization occurs when either its debt repayment cannot be covered by the cash flow being generated by the organization or the outstanding debt of the organization cannot be reduced sufficiently to reduce...
Read MoreThe FDIC released data on the state of the banking industry last week.And, we see that the size and number of the bigger banks increase while the size and number of the smaller banks continue to decline. Let’s look at the...
Read MoreI spend a lot of time writing…and talking…about the credit inflation that has taken place in the United States over the past fifty years. In my mind, this period of credit inflation set the stage for the Great...
Read MoreI believe that Gretchen Morgenson of the New York Times has done investors a big favor in writing her piece for the Sunday morning paper of November 20.This article reveals the extent that officials will go to try and avoid the...
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