More On The FDIC Situation

On August 7th I posted some commentary titled “The FDIC Situation.”  Here is a story from The Wall Street Journal that does a good job of summarizing the situation there: http://online.wsj.com/article/SB125137695691263385.html?mod=djemalertNEWS One of the statistics of interest: “The FDIC’s insurance fund, which guards $6.2 trillion in U.S. deposits, fell to $10.4 billion at the quarter’s …

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The Latest 10-Year Budget Projection

Yesterday, The Wall Street Journal came out with a story titled “A Decade of Debt” that can be found at this link: http://online.wsj.com/article/SB125119686015756517.html It discusses the latest 10-year budget projections that amount to a cumulative addition of $9 Trillion in debt. I would like to briefly comment on this latest budget projection: As seen in the …

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The Importance Of Dealing With Problems Early

During his July 22 Press Conference, President Obama said healthcare is “a problem that Washington has failed to solve for decades.” Unfortunately, the healthcare problem isn’t the only problem that has been “brewing” for a long time.  It is imperative that problematical issues are dealt with effectively when they are in their early stages.  Otherwise, …

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Healthcare – A Few Thoughts

As President Obama said during his July 22 Press Conference, healthcare is “a problem that Washington has failed to solve for decades.” I want to make a few random comments about healthcare.  Any substantive discussion on my part would be exceedingly lengthy as this is a complex subject. I do believe that there has to …

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The FDIC Situation

Ever so often I come across a story concerning the FDIC and its wherewithal to be able to cover its potential commitments. It appears to be exceedingly thinly funded in relation to potential liabilities.  This may not be a big issue going forward if the economy improves; however, it could become a very large issue …

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“Quick Fixes” To Balance State Budgets

I wanted to briefly comment on this recent (July 17) Wall Street Journal article that mentions how Illinois and California are working to “balance” their budgets: http://online.wsj.com/article/SB124776520979752661.html The article brings to mind a term that I have used before, “quick fixes.”  Sadly, some of the means by which these budgets are apparently being balanced might …

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Clarification of a Phrase

I would like to quickly clarify a phrase I have been using on this blog… The phrase is “this period of economic weakness.” The reason I use the term is that, as I have explained in this prior post: https://www.economicgreenfield.com/2009/06/22/are-we-in-a-depression/ that our current economic environment is difficult to classify.  Furthermore, it is a very fluid situation that can …

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Financial Terms That Have Fallen Out of Use

I find it interesting that certain financial and economic terms seem to have completely fallen out of use, especially in the press.  Among these I would include “Quality of Earnings” and “Fiduciary Responsibility.” As well, “Moral Hazard” is still used but surprisingly much less than one would think.  It seems to be on the way out. What is the …

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“First Time of Adversity” Effect

There was a recent article in The Wall Street Journal titled “Detroit’s Food Banks Strain to Serve Middle Class”: http://online.wsj.com/article/SB124718194179420129.html One aspect that caught my attention was the mention of people who are receiving aid for the first time.  In fact, the story points out that some people who used to be donors to the …

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