Bank Failure Friday - 3 more closures, tally for 2010 to 86

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Ah, what would be a weekend start without a few more bank failures. This week's closures, along with their costs to the FDIC deposit insurance fund are:

  • High Desert State Bank, Albuquerque, New Mexico $20.9 million
  • First National Bank Savannah, Georgia - $68.9 million
  • Peninsula Bank, Englewood, Florida - $194.8 million

Last year's tally was 140. This years total bank failures are expected to top 2009.

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CRE lending

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Calculated Risk is maintaining an unofficial problem bank list. list here. I just scrolled through it and you can see a host of banks specializing in commercial real estate listed.

Recall CRE mortgage crash is coming, starting at the end of this year.

CRE, Fannie, Freddie, Balloon/Subprime Loans Still Percolating

Thats a few trillion right there which is why the Fed will not raise interest rates and will turn on the printing presses once again to try and get real estate prices back to late 2006 peaks - to protect the banks before 'mark to market' hits in 2011.

Any rise in GDP has been completely fabricated by government deficit spending.

'Everything we have done in the context of this crisis has been helpful today but potentially harmful tomorrow,' he explains. 'We increased deficits, which is helpful. But it also increased debt and the risk premiums.

'With monetary policy we have opted for very, very low interest rates, which supports the economy. But it gives people no incentive to save. And if there's no saving there is no investment. this is not a recipe for progress.'

'Can we have zero interest rates forever? If you say no, we have to go back to normal, then the asset prices have to go back to normal. there's nothing truly sustainable in all this - it's all artificial."

while your subject is true, gov. deficit spending is not GDP

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This is why I write them up and I suggest reading them and arguing from the stats reported.

The reason GDP rose in Q4 2009 as well as q1 2010 was inventory changes. That's the #1 contributor.

It was almost 70% of Q1 GDP.

Q1 2010 GDP 2.7%.

These are the private sector inventories. Please read these reports. The answers are in the statistics. A huge problem with both the MSM and the blogosphere is not looking at the numbers.

Unsold

That quote was from William White not from me.

Tax credits and people whose jobs have been spared (public sector) or who are getting a weekly check from unemployment are priming the pump and making the economy look better.

It seems disingenuous to say we need to continue these programs on one hand then turn around and say these programs which are all deficit spending have nothing to do with the gdp.