"This merger (Bank of America and Merrill Lynch) is a classic example of how the actions of our nation’s largest financial institutions led to the near-collapse of our financial system," said Attorney General Cuomo. "Bank of America, through its top management, eng
A strategist at the Deutsche Bank had something interesting to say last week regarding the economic crisis in southern Europe.
“The problems currently faced by peripheral Europe could be a dress rehearsal for what the U.S. and U.K. may face further down the road,” Jim Reid, a strategist at Deutsche Bank in London, wrote in a research note today.
It seems impossible that what is going on in Greece has anything to do with America. After all, Greece has defaulted on its debts so often over the last two centuries that you could almost set your watch to it. It was always contained in the past because Greece's economy is so small, so why would this time be different this time?
And yet, it isn't contained this time. It is spreading and no one knows how far it might go.
Spooked investors worldwide were fleeing risky assets like stocks. And from Shanghai to Sao Paulo, people were awakening to the reality that what is happening in these European minnow states has vast implications for the fate of the fragile global economic recovery.
While one might think this is better news for U.S. workers, in terms of global labor arbitrage, it's probably only good news for the Chinese. A Chinese province raises minimum wage 13% to a whopping $140 USD a month!
A decision by the province that is China’s second-biggest exporter to raise minimum wage rates has heightened expectations that other provinces and cities will soon follow, just as the central government’s attention is shifting from economic stimulus to rising inflation.
Eastern Jiangsu province, which exports more than Brazil and South Africa combined, raised its monthly minimum wage rate 13 per cent to Rmb960 ($140) last week. It was the first time the rate had been adjusted in two years.
On The Economic Populist you might have noticed the middle column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.
Sometimes though, one cannot say it better but miss those who did.
Must Read Post #1
Just because everyone says it's so, doesn't mean it is....a premise amplified in the The Crisis Won't Get Moving. From the impending European Crisis to similar observations made here in this post on residential real estate, things are not all over as one is led to believe in the Financial Crisis. Oh yeah, what was that about Financial reforms and effective action?
Must Read Post #2
Baseline Scenario asks if Geithner is paying any attention to the global economy. Yes, the sudden stock market crash was not because of the unemployment report, it's about Greece.
Yes this one is late. This week's failure was First American State Bank of Minnesota with an estimated FDIC cost of $3.1 million.
But that's not the real story on bank failures. CBS Market Watch is reporting 200 or more banks are expected to fail this year.
The continuing fallout from bad loans made in good years means even more U.S. banks will fail in 2010 than 2009, despite a recovering economy.
That's the prediction of bank analysts who see as many as 200 institutions closing this year, at a potential cost of more than $50 billion to taxpayers, as risky loans approved in 2006 and 2007 take their toll.
There were 140 bank failures in 2009, the cost was $36.5 billion or so.
Even worse, they are not expecting this to be over until 2013.
It's Friday Night! Party Time! Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!
25 Million Pounds is an Adam Curtis documentary on Nick Leeson and the collapse of Barings Bank. This happened in 1995 where one rogue trader, Nick Leeson, through futures trading, brought down the entire bank. Think about this and then Enron, WorldCom, Dot Con and now our current debacle and may I suggest all simply get over their Conservative/Liberal/Tea Party/Netroots/Progressive/Populist/GOP/Dem/Green/Contitution/Capitalism/Socialism/Libertarianism divide, all join forces and demand we get real financial reform? We've gone from one rogue trader to as an entire global sector....rogue trading as general practice. Enjoy.
Dr. Robert Reich at has an excellent piece today (Feb. 5) on the Congressional hypocrisy involved in its subservience to Wall Street. He calls it as it is, bought and paid fors.
Call me old fashioned, but I thought Congress was in charge of passing legislation, not Wall Street.
Dodd left out the most telling detail, of course. Wall Street is where the campaign money is. Dodd of all people knows that. He's been on the receiving end of lots of it over the years.
This is interesting on two levels. First, the obvious level that the banks which issue credit cards are, as dakinikat writes, "taking steps to ensure we continue our indentured servant status." But the second level I want to point out is how discipline is imposed within the economics profession to ensure the continued apologia for the banksters and their financialization of the economy.
It's Friday Night! Party Time! Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!
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