The Great Recession Is Over Says Business Economists Panel

As I have repeatedly pointed out in this blog, the only thing that is keeping the game going for the economy at present is the fact that government spending along with Federal Reserve interference in the marketplace has created some green shoots. The consequences of this action for the short term has given us and these forecasters the mirage that “all is well.” The truth of the matter is that we are presently in the eye of the hurricane. The calm before the continuation of the economic storm.

The Banking Crisis is Far From Over

“Failed banks are weighing on FDIC” is the headline in tomorrow’s Wall Street Journal. Banks are being taken over at an alarming rate thus far in 2009. Banks aren’t lending so it is difficult for them to make a profit while at the same time they are trying to resolve their past lending decisions. Individuals are finding it difficult to secure loans with the more stringent FICO requirements. Increasing unemployment is making it difficult for many more to maintain their home ownership. As people who are now or soon to owe more than their house is worth decide to bail on home ownership, the bank will be left holding an unwanted, depreciating asset. This is occurring all at a time when banks may be forced to mark to market their assets, showing their real estate holdings value based on today’s depressed prices thus revealing balance sheets that are becoming ever more weaker.

Digger’s Friday Triple Play

Doug Digger Eberhardt’s Top 3 Articles and Posts of the Week

Budget Deficit Tops $1 Trillion for First Time
Bank of Wyoming Is the 53rd FDIC-Insured Institution to Fail in the Nation This Year
Why Obamacare Can’t Work: The Calculation Argument

America’s Infrastructure In 2009: Grade “F”

In 2005, the American Society of Civil Engineers (ASCE) came out with a report card on America’s Infrastructure. The overall grade from the 2005 report was D, down from a D+ in 2001. William Henry, president of the ASCE, said; “Since the time our infrastructure was last graded in 2001, [...]

If It Smells Like A Recession…

The “only” thing that has kept this economy going is the housing run-up caused by the Fed’s manipulation of interest rates lower causing consumers to find new money via equity from their homes and now the only thing keeping it going is massive infusion of the money supply by the Fed which is propping up the stock market…again.

How long can the game continue is the only question….