Most of those "consumer actions" are really corporations paying some smuck to push their products with no objective info. So, here's my first one, I checked out local credit unions and found way better rates and very flexible terms. They let me to do a 5 yr. loan and also buy an out of state private party used car. That gave enormous flexibility because I get $$ in chunks due to self employed. Then, allowing me to buy from private parties in addition out of state let me expand my hunt area so I ended up finding a really good deal. Oh yeah, the rate was 5.75% which I'm fairly certain is pretty good, esp. considering during this time, Jan. you couldn't get financing, even with great credit. I originally called my regular bank and they said they were not doing car loans, PERIOD, as in zero.
NEW YORK (Reuters) - Guaranty Financial Group Inc (GFG.N), the second-largest publicly traded bank in Texas, said it will probably fail after loan losses and write-downs left it "critically" short of capital.
snip
The Austin-based lender has about $16 billion of assets and more than 150 branches in Texas and California, according to its website.
On that basis, if it were to fail, Guaranty would be the largest U.S. bank to collapse in 2009. Guaranty is about half the size of IndyMac Bancorp Inc (IDMCQ.PK), which failed last July.
I switched from my TARP recipient to a CU with TARP 1. My tax dollars were all they were going to get from me.
I think you are really onto something. It will help empower those that feel like these issues are out of their control.
I think I can handle a weekly series. I am looking for an IRA that invests only in sustainable, productive investments right now, anyway. It may be a good place to start.
I had to get a car loan at the height of the credit crunch and discovered credit unions. I couldn't believe the terms, rates I could get and was wondering why I didn't check them out in the past.
So, we could start a weekly post series called Consumer action of the week or something to that effect but from what I've seen real consumer action has been quite a failure, but who knows one could make it viral, esp. when there are plenty of better solutions available right at the moment.
First, an agreement would have to be reached as to what policies we want enacted. Create a grass roots movement to educate people on why the reform is needed.
A charismatic spokesperson and great marketing.
A sexier solution is to convince everyone you know that the banks are inherently evil and they should withdraw all their money, 401's and other investments from the bankster's clutches.
The presentation was very good. He definitely reflects my understanding of our economic situation. I was a bit uncertain regarding his point about joint government/corporate reform. I'm not sure that I agree with a consolidation of government/corporate interests.
I agree that the economic problem has been misdiagnosed and therefore we have insufficient solutions.
A bit along this same vein was a David Brancaccio interview with Zanny Minton Beddoes of The Economist on Now. She discusses why the Obama solution is vastly insufficient. I do not agree with everything she says, but she has valid points.
One thing I hear and read currently is that if the economic decline had been worse, then might see true reform. Most of the policy changes we have seen are redecorating.
Firstly, reader drop off is severe this month. Now part of this can be a defocus from all things econ generally plus it's at the height of summer, but still it's not good for us building up participation, new people, readers, writers.
So, please invite others you find around on the blogs to post on EP and comment (although make sure they are logical, well cited, etc.)
Secondly, because while we have the infamous green shoot/brown weed argument going on, I think all can agree the Economic Armageddon, immediate demise motif as well as breaking stats has subsided. This is almost a problem because many people seem to believe it's "all good" then and just plain think there isn't underlying major structural, regulatory, market sector, work issues that must be addressed.
So, I don't know about you, but I'm looking at the statistics over 80 years, 30 years, 10 years and so forth and firmly believe, long term, for long term economic health the U.S. needs some major policy shifts, from income inequality to manufacturing to labor rights to education to health care.
So, may I suggest we start writing about some of the policies and legislation out there with these large macro economic statistics?
I mean, sure ok, let's debate the exact point of the housing bottom and is a recovery really a recovery when it's simply stopped cliff diving or can one have any such thing with an unemployment rate going to 11%?
But in the bigger picture, issues like trade, offshore outsourcing, manufacturing policy, predatory financial practices etc. seems to be getting really ignored.
WSJ Article with a graphic showing concentration of failures (as of July 19, 2009).
It sounds like from the article that it was a matter of Georgia banks taking on too much risk and regulators not doing their job. It is just a microcosm of the mortgage crisis.
Robert: The Southeast has been hit very, very hard by the real estate bust. Particularly Florida and the metro Atlanta markets were very inflated, and have come crashing down.
The other nexus was the Southwest (California/Nevada). Banks have been imploding there in record numbers as well, but the California failures were *bigger* banks. IndyMac, Downey, PFF, First National, etc., were all banks with $1B+ in assets, and IndyMac had $30 billion. The failures in Georgia are more numerous because they're all *small* local banks, with high concentrations of bad Atlanta-area real estate loans. Security Bank Corp. was the owner of all six of the banks closed in today's action, and they each served only one or two counties.
If you looked at the failures in California versus Georgia in terms of assets, rather than simply the number of failed banks, you'd find that California is very much the epicenter of the crisis.
It would be interesting to get a breakdown by region for I notice a large number of these Bank Failure Friday's are in Georgia. What exactly is going on to cause so many in one area? Georgia is not ground zero in terms of residential implosion.
They are inviting some really great economists plus putting everything online. This is great for blogs because we can point to some of them (plus watch them).
Despite the Google connection, I'll have to check out more what they are really recommending in terms of policy, simply due to having so many very out of the box, good economists who get ignored of course when it comes to enacting anything.
I wish CSPAN would get it more together. They have often transcripts, which will go to the actual point in the video, i.e. search the word transcript, come up with the video clip, which you can mark, now this is awesome because who can sit there 4 hour hearings? But they don't put up every single hearing and we're interested in the hearings often which don't garner that much attention so a video with transcript or even a video isn't available.
not so good for US workers. Without an industrial policy that supports American manufacturing, this country will never have a strong middle class again. Without a strong middle class, there are not enough consumers for the piggish US consumer based economy to flourish. Wall Street will recover, but the rest of us will not.
it is possible that the money supply is part of the problem.
That would be true if we were having a liquidity problem.
However, the source of our problems is insolvency, and that can't be cured by more liquidity.
a basic fantasy agreement is arrived at by specific parties which says if Party 1 will offshore all their jobs to the cheapest existing, and most authoritarian-controlled labor market at that time, then Party 2 will purchase their debt with agreed upon imaginary funds.
It's the financial system that has worked since the Asian Currency Crisis of 1997. The Asian nations were forced to build up enormous currency reserves to protect themselves from another liquidity crunch. To do that they bought up our debt.
Two problems with this arrangement:
1) Eventually the Asian nations will have more than enough currency reserves
2) Eventually the debt levels in America will get so large that they will crush the American consumers
Both of those things are now happening. No longer can the American consumer purchase the cheap crap that Asia produces, and thus Asia doesn't have the trade surpluses to recycle into buying our debt.
Normally that wouldn't be a problem, except that the government is going on a massive borrowing phase to replace the consumer demand.
After reading this over several times, I find myself perfectly in agreement with this excellent analyses.
She sums it up perfectly, even if somewhat on the conservative side, that the exponential increase in debt leveraging - leading to the ultra-deleveraging of the present - was the prime cause.
Really no mystery there when the most succinct number I've seen to date is $136 on hand for every $10,000 lent, considering the usage of credit default swaps to allow for the "spreading of risk" by the banks, whose majority business was made up of mortgages (over 70% nationwide).
And please remember, an unlimited number of credit default swaps can be written against one borrower.
Most of those "consumer actions" are really corporations paying some smuck to push their products with no objective info. So, here's my first one, I checked out local credit unions and found way better rates and very flexible terms. They let me to do a 5 yr. loan and also buy an out of state private party used car. That gave enormous flexibility because I get $$ in chunks due to self employed. Then, allowing me to buy from private parties in addition out of state let me expand my hunt area so I ended up finding a really good deal. Oh yeah, the rate was 5.75% which I'm fairly certain is pretty good, esp. considering during this time, Jan. you couldn't get financing, even with great credit. I originally called my regular bank and they said they were not doing car loans, PERIOD, as in zero.
Guaranty Financial, No.2 Texas bank, says may fail
I switched from my TARP recipient to a CU with TARP 1. My tax dollars were all they were going to get from me.
I think you are really onto something. It will help empower those that feel like these issues are out of their control.
I think I can handle a weekly series. I am looking for an IRA that invests only in sustainable, productive investments right now, anyway. It may be a good place to start.
I had to get a car loan at the height of the credit crunch and discovered credit unions. I couldn't believe the terms, rates I could get and was wondering why I didn't check them out in the past.
So, we could start a weekly post series called Consumer action of the week or something to that effect but from what I've seen real consumer action has been quite a failure, but who knows one could make it viral, esp. when there are plenty of better solutions available right at the moment.
Want to do a series like this?
Not so easy answer.
First, an agreement would have to be reached as to what policies we want enacted. Create a grass roots movement to educate people on why the reform is needed.
A charismatic spokesperson and great marketing.
A sexier solution is to convince everyone you know that the banks are inherently evil and they should withdraw all their money, 401's and other investments from the bankster's clutches.
some of these ideas into actual pieces of legislation we can push to support?
The presentation was very good. He definitely reflects my understanding of our economic situation. I was a bit uncertain regarding his point about joint government/corporate reform. I'm not sure that I agree with a consolidation of government/corporate interests.
I agree that the economic problem has been misdiagnosed and therefore we have insufficient solutions.
A bit along this same vein was a David Brancaccio interview with Zanny Minton Beddoes of The Economist on Now. She discusses why the Obama solution is vastly insufficient. I do not agree with everything she says, but she has valid points.
One thing I hear and read currently is that if the economic decline had been worse, then might see true reform. Most of the policy changes we have seen are redecorating.
Firstly, reader drop off is severe this month. Now part of this can be a defocus from all things econ generally plus it's at the height of summer, but still it's not good for us building up participation, new people, readers, writers.
So, please invite others you find around on the blogs to post on EP and comment (although make sure they are logical, well cited, etc.)
Secondly, because while we have the infamous green shoot/brown weed argument going on, I think all can agree the Economic Armageddon, immediate demise motif as well as breaking stats has subsided. This is almost a problem because many people seem to believe it's "all good" then and just plain think there isn't underlying major structural, regulatory, market sector, work issues that must be addressed.
So, I don't know about you, but I'm looking at the statistics over 80 years, 30 years, 10 years and so forth and firmly believe, long term, for long term economic health the U.S. needs some major policy shifts, from income inequality to manufacturing to labor rights to education to health care.
So, may I suggest we start writing about some of the policies and legislation out there with these large macro economic statistics?
I mean, sure ok, let's debate the exact point of the housing bottom and is a recovery really a recovery when it's simply stopped cliff diving or can one have any such thing with an unemployment rate going to 11%?
But in the bigger picture, issues like trade, offshore outsourcing, manufacturing policy, predatory financial practices etc. seems to be getting really ignored.
WSJ Article with a graphic showing concentration of failures (as of July 19, 2009).
It sounds like from the article that it was a matter of Georgia banks taking on too much risk and regulators not doing their job. It is just a microcosm of the mortgage crisis.
Robert: The Southeast has been hit very, very hard by the real estate bust. Particularly Florida and the metro Atlanta markets were very inflated, and have come crashing down.
The other nexus was the Southwest (California/Nevada). Banks have been imploding there in record numbers as well, but the California failures were *bigger* banks. IndyMac, Downey, PFF, First National, etc., were all banks with $1B+ in assets, and IndyMac had $30 billion. The failures in Georgia are more numerous because they're all *small* local banks, with high concentrations of bad Atlanta-area real estate loans. Security Bank Corp. was the owner of all six of the banks closed in today's action, and they each served only one or two counties.
If you looked at the failures in California versus Georgia in terms of assets, rather than simply the number of failed banks, you'd find that California is very much the epicenter of the crisis.
It would be interesting to get a breakdown by region for I notice a large number of these Bank Failure Friday's are in Georgia. What exactly is going on to cause so many in one area? Georgia is not ground zero in terms of residential implosion.
They are inviting some really great economists plus putting everything online. This is great for blogs because we can point to some of them (plus watch them).
Despite the Google connection, I'll have to check out more what they are really recommending in terms of policy, simply due to having so many very out of the box, good economists who get ignored of course when it comes to enacting anything.
I wish CSPAN would get it more together. They have often transcripts, which will go to the actual point in the video, i.e. search the word transcript, come up with the video clip, which you can mark, now this is awesome because who can sit there 4 hour hearings? But they don't put up every single hearing and we're interested in the hearings often which don't garner that much attention so a video with transcript or even a video isn't available.
This was an excellent discussion.
not so good for US workers. Without an industrial policy that supports American manufacturing, this country will never have a strong middle class again. Without a strong middle class, there are not enough consumers for the piggish US consumer based economy to flourish. Wall Street will recover, but the rest of us will not.
I follow that guy at http://www.forecastfortomorrow.com and he constantly talks about these lies and decit.
seeing orders before they happen is pure rigged game...it always has been, when are they going to do something about it.
sheesh...ok enough ranting for one day.
But the "myth" arguments detract from that.
It was increased financialization that caused this crisis along with income inequality and globalization.
The myth that she is disputing is that the foreclosures or subprime mortgage market brought on the economic meltdown.
Had there not been layer upon layer upon layer ..... of securitization, this economy, or what is left of it, would not now exist.
The number of actual foreclosures or defaults was relatively low, simply not the "endless well" which we are falling down now.
This is similar to what occurred in the 1920s, leading to the Great Depression.
That would be true if we were having a liquidity problem.
However, the source of our problems is insolvency, and that can't be cured by more liquidity.
It's the financial system that has worked since the Asian Currency Crisis of 1997. The Asian nations were forced to build up enormous currency reserves to protect themselves from another liquidity crunch. To do that they bought up our debt.
Two problems with this arrangement:
1) Eventually the Asian nations will have more than enough currency reserves
2) Eventually the debt levels in America will get so large that they will crush the American consumers
Both of those things are now happening. No longer can the American consumer purchase the cheap crap that Asia produces, and thus Asia doesn't have the trade surpluses to recycle into buying our debt.
Normally that wouldn't be a problem, except that the government is going on a massive borrowing phase to replace the consumer demand.
The system no longer works.
After reading this over several times, I find myself perfectly in agreement with this excellent analyses.
She sums it up perfectly, even if somewhat on the conservative side, that the exponential increase in debt leveraging - leading to the ultra-deleveraging of the present - was the prime cause.
Really no mystery there when the most succinct number I've seen to date is $136 on hand for every $10,000 lent, considering the usage of credit default swaps to allow for the "spreading of risk" by the banks, whose majority business was made up of mortgages (over 70% nationwide).
And please remember, an unlimited number of credit default swaps can be written against one borrower.
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