Bank failures reach 149 for the year

First Banking Center, Burlington, WI, Allegiance Bank of North America, Bala Cynwyd, PA and Gulf State Community Bank, Carrabelle, FL all failed yesterday, bringing the total of bank failures for the year to 149. This is the first failure of a Pennsylvania bank this year, but number 28 for Florida, showing the continuing real estate [...]

FDIC “Problem” Banks At New High of 829 Institutions

The number of problem banks hit a new high, 829. This is in spite of the number of institutions dropping from 7,934 to 7,830 as institutions merged or were closed. Maybe the rate of increase is slowing.

50 Banks Failed So Far This Year

I’ve been away from my blog for too long. It’s just the press of classes, writing, and my personal life. In the count of failed banks, the FDIC closed eight banks last Friday, April 16. That brings the total to 50 for the year. On January 31, I predicted 150 failures for the year. That [...]

Could inflation start?

A friend just told me that her investment adviser said don’t worry about inflation, the velocity of money is low. However, the quantity of money is soaring. The adviser is right that velocity is low. However, that’s the equivalent of saying that we’re standing in a puddle of gasoline, but everything is fine because no [...]

FDIC closes number 99, and the Community Reinvestment Act rolls on

San Joacquin Bank in Bakersfield CA failed on Friday. That’s the 99th bank to fail. Meanwhile, the Community Reinvestment Act enforcement continues. That’s the law that requires banks to make loans to marginal borrowers. The CRA required banks to make sub-prime loans. The bill is now being paid. The FDIC publishes bank compliance with a [...]

Do Deficits Matter? Thoughts on the “Laffer Curve”

Supply-side economists rely heavily on “The Laffer Curve.” A Laffer Curve in economics shows that two levels of taxation, one high and one low produce the same level of tax revenue to government. However, the lower one will create more investment and employment in the economy. I am reading Brian Domitrovic’s Econoclasts: The Rebels Who [...]