Friday, December 11, 2009

Rice in the Christmas stockings

Three more bank chains were seized today bringing the total to 133 for the year. The head of the FDIC says the peak for bank failures will come next year. Indeed the commercial loans made five years ago will be coming due. Those loans will be to the many of the more overextended developments built at the peak of the bubble years.

The Treasury Dept. has instituted a program to bail out as many of the small banks as it can to keep the failure numbers from getting too big right before the 2010 elections.
The headline today was that retail sales for November were up more than 1% but contrast this will state sales tax receipts that are down 10 to 20 percent depending on how deep your state is into the Depression. States are gearing up to slash next years budgets and this will not be good for the economy.

The House has passed a bill regulating the financial services industry. It’s not nearly enough but Republicans are screaming that it’s the end of freedom for Americans so there most be a couple of good things in it. Funny how they don’t care about any of the freedoms we’ve lost so far but regulate parasitic bankers and it’s the end of the world.

The rest of the world is paying close attention to whether or not the US is serious
about reining in these overgrown corporations that threaten the world economy. This is a no brainier for the rest of the world after last year’s banking collapse. The runaway food commodity markets fueled by speculators and the specter of famine was a wake up call for most. There is some hint that this could be starting up again as the rice market is heating up. It’s possible to store grain for a number of years if you go about it right or you can just go with canned goods in the Christmas stockings this year.