Remarks From Remarksman

April 10, 2009

NPR Reporting Continues To Disappoint

Filed under: Uncategorized — BrianB @ 3:35 pm
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I heard this story about how the banks that are still in business are whining about big increases in the FDIC premiums they must pay on NPR this morning.

I kept waiting to hear as the story neared its end that many banks have not been paying any premium for the past ten years. The Boston Globe has a story that explains the situation with much more context.

Instead of providing the important historical information, the NPR story interviews a bank manager who says:

“We were very angry that we were paying for the sins of others,” Marranca says. “Obviously, the cost of this was because other people were doing silly, imprudent, criminal things. We never got involved in subprime loans. We would never do a loan with no documentation. We didn’t cause this problem. Imagine if you had to pay for your neighbor, or your competitor screwed up somehow, and you had to pay for it.”

Then the reporter makes this lame joke:

Yes, taxpayers, close your eyes and try to picture a scenario where you pay for the mistakes of others.

Bank managers whining about increased premiums that will cut into their profits really does seem lame in the face of the massive debt incurred by the government bailout that taxpayers will have to pay off. But the NPR story doesn’t even mention that this is the way insurance works! When hurricanes or other natural disasters destroy lots of property, our State Farm/Generic Brand Insurance rates go up.

Thanks for nothing on this story, NPR!

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February 1, 2009

Fed Borrowings Grow At Alarming Rate

Filed under: Uncategorized — BrianB @ 5:29 am
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I posted a Fed Borrowings chart back in August that seemed worrying at the time… Check out the latest ( December 2008 ) data:

Federal Reserve Borrowings by Depository Institutions as of Dec 1 2008

Federal Reserve Borrowings by Depository Institutions as of Dec 1 2008

(Source: Federal Reserve Bank of St. Louis)

Borrowings are now about three times as much as they were in August.

September 26, 2008

Must See Video – Money As Debt

Filed under: Uncategorized — BrianB @ 6:16 pm
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Canadian artist Paul Grignon created an amazing video that explains how our current system of money works, and why it is pretty much doomed to collapse eventually.

It is a 47 minute video, but it is well-worth the time spent in explaining why the current “Credit Crisis” is happening, and why the bankers and Federal Reserve have so much sway.

Watch it embedded below, or click here to view it in a new window.

August 2, 2008

Chart Showing Bank Borrowing From the Fed

Filed under: Uncategorized — BrianB @ 3:41 pm
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This chart from the St. Louis Federal Reserve Bank speaks for itself.

Banks Fed Borrowing History

Banks Fed Borrowing History

Update Jan. 30 2009: Borrowings are now about three times bigger! See newer post.

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