Category: United States

Regional Fed Prez Backs EW: TBTF Destroying US Real Economy


While we obviously have a slightly more wild style — and some differences in substance —

it appears that the President of the Federal Reserve Bank of Kansas City

agrees with the basic analysis expressed in our Feature today on

the lessons of the Fed Document Dump for the American economy.

Thomas M Hoenig argues that more must be done

to address a threat that remains increasingly a part of our economy:

financial institutions that are “too big to fail.”

Fed Document Dump Shows Failure of “Middleman” Approach


 

Insider Trading: Rumours Circulate Of A Big Story About To Hit Wall Street


Rumours are circulating in the press that a huge story may be about to break around a massive insider trading investigation conducted by the FBI.

Speculation has already begun on whether it will result in criminal charges or significant civil fines against Wall Street traders and executives.

One US government official – speaking on the condition of anonymity – was quoted as saying “We are far along in investigations of insider trading”.

US Battles World Criticism of Economic Policy


A growing global divide was evident on Saturday at a gathering of finance ministers from the 21-member Asia-Pacific Economic Cooperation forum,

after several days of sharp criticism of the Federal Reserve’s announcement that it would buy $600 billion in Treasury securities to bolster growth.

Countries like China, Brazil and Germany have warned that the unilateral move devalues an already-weak dollar,

Geithner Firing Talk Heats Up w Inspector General’s Report


And if it doesn’t, it should start RIGHT away.

The United States Treasury concealed $40 billion in likely taxpayer losses on the bailout of the American International Group earlier this month,

when it abandoned its usual method for valuing investments,

according to a report by the special inspector general for the Troubled Asset Relief Program.

“In our view, this is a significant failure in their transparency,” said Neil M. Barofsky, the inspector general, in an interview on Monday.

US Corps Push Health Care Costs Onto Employees


As health care costs continue their relentless climb, companies are increasingly passing on higher premium costs to workers.

In contrast to past practices of absorbing higher prices, some companies chose this year to keep their costs the same

by passing the entire increase in premiums for family coverage onto their workers,

according to a survey released by the Kaiser Family Foundation, a nonprofit research group.

US Retail Sales Pushed by Big Discounts


Back-to-school season started off on sale, with retailers receiving new merchandise in August, and then marking it down to get it out the door.

All of the discounting was a troubling sign for the fall and holiday seasons.

To make it through the worst of the recession, retailers cut prices aggressively, which hurt their profits.

They say they have learned their lesson and are trying to retrain consumers to buy at full price by having fewer items available,

FDIC Q2 Report: US Banks Still Deeply Troubled


As the economy remains weak, the number of troubled banks creeps higher, the Federal Deposit Insurance Corporation said in its report for the second quarter.

Agency officials said the list of “problem banks” reached 829 in the second quarter, an increase of 54 lenders, many of which were small community banks.

While that is a smaller increase than in previous quarters, the number of problem banks remains at its highest level in more than 16 years.

US Debt Increasingly Held Domestically, Not Overseas


Nearly a decade ago, when budget deficits ballooned in the United States,

it was widely said that Washington — like Blanche DuBois in “A Streetcar Named Desire” — “depended on the kindness of strangers.”

In Washington’s case, foreigners — mostly foreign governments — stepped in to buy most of the new Treasury securities being issued.

Budget deficits have ballooned again, but the story is different this time.

Iraq Mercenary Blackwater Gets Gift Deal from Obama / Clinton State Dept


Not surprisingly, it became known on a Friday – the day when companies always try to bury bad news – in late August,

when most Americans, at least, are sadly looking towards the looming end of summer vacations.

But sources revealed one of the two most notorious corporations – past / future employers of then-in-power Dick Cheney / George W Bush –