Fed Sees Solution In Zero Rates The Federal Reserve recently vowed to keep interest rates “exceptionally low”  for the foreseeable future in an attempt to revive the economy.   Since mid 2006 the Fed has brought the Fed Funds Rate down from 5% to...

Depression Pricing As Empty Hotels Slash Rates The recent era of easy lending was not confined to residential real estate.  Commercial real estate lending is the next big worry for a banking industry already beset by an avalanche of non performing...

The Marginalization Of Risk The massive number of loan defaults that has put the entire banking industry on the brink on insolvency did not happen by accident.   Banks recklessly extended credit, even to low income borrowers who obviously had the...

Japan’s Zombie Banking Taken To New Levels Of Lunacy Japan’s real estate and stock market bubbles burst in the early 1990’s.   Since then, twenty years of non stop Government stimulus programs have failed and left Japan with the highest debt to GDP...

FDIC May Request Treasury Loan As Losses Grow The FDIC always takes pride in noting that it is self funding and covers failed bank losses by assessments on FDIC insured member financial institutions. Congress created the Federal Deposit Insurance...