naked capitalism

Doc Holiday says:

“Capital Adequacy”

Here we are, December 2009 and FDIC has closed 130 banks because of “Capital Adequacy” mis-management. FDIC suggests that 552 banks are at risk of going in the crapper; which is the highest banking failure rate since 1993, when the nascent political agency red-flagged 575 banks. Some analysts suggest the failure rate for banks during this period of excess corruption will be far higher.

Bank Failure Friday and the weekly reminders from FDIC just seem boring now and economic stimulus buffoonery falls on deaf ears — but does anyone see any kind of a pattern there with FDIC and bank failures? Are the extra large jig-saw puzzle pieces so large that only drooling idiots are allowed to play this mindless game (my apologies to anyone in the Fed or other tainted agency)?

IMHO, inflammatory swearing and belligerent hostility is in order at this point, because I’d seriously like to know WTF was going on with FDIC between the years 1993 and 2005. To be fair, go here to the FDIC Time Machine: http://www.fdic.gov/bank/Historical/s&l/ where some historical context can be used to give the chaotic puzzle some order.

I realize that I’m tossing out a huge amount of dog years there, almost unlimited in anyones ability to grasp, but somehow, during the blow-up of the S&L bubble and then the resulting popping — FDIC had its collective pants down around its ankles (as far as they could go). The highly soiled FDIC was frozen in some kind of a fusion-like dream trance, caught between being zombie idiot/retards (on one-hand) while actually playing the realistic role of sophisticated financial engineer crooks (on the other hand) who were seemingly actively involved in wide-spread collusion and fraud. Any way you dice the FDIC facts, a lot of crap was going down around them and obviously, these guys were looking the other way during the S&L building boom.

So — fast forward the FDIC time machine to about 2002 +/- or about 63 dog years … and as if watching a frame-per-frame instant replay, FDIC is caught on High Definition with its collective panties bunched up around its collusive ankles (again) and once again, knee deep in financial feces, with the same happy faced smile …. that once again forces me to bring up the exact same recurring notion that the same retarded or (highly corrupt) people at the FDIC somehow willfully and blissfully ignored the concept of “Capital Adequacy” for the entire U.S Banking System — for a decade! WTF?

So this is Christmas, 2009, and what have we done? FDIC is doing us all a huge service by shutting down 100’s of crappy banks that somehow slipped through their tainted stinking fingers — but, suddenly, FDIC is back in the business of regulating and cleaning up our latest systemic failure, just like a group of heros, versus being taken to task by an inept group of morons collectively addressed as congress (see Mark Foley).

Nonetheless, I’m wondering why FDIC is designed to ignore its mandate to regulate banks during periods of corrupt boom periods and then provide a unique service of banking consolidation after the bubbles pop? It seems as if the FDIC is not retarded at all, but a partner with wall street, AKA The Mafia and thus FDIC is simply a clearing house to launder money for the Fed or organizations that need to play with hot money (see TARP).

As Wiki provides: “As the Clearing House concentrates the risk of settlement failures into itself and is able to isolate the effects of a failure of a market participant, it also needs to be properly funded in order to ensure its survival in the event of a market event”.

FDIC is perhaps the biggest bank robber of all ….

That does it!

Out you two pixies go,
through the door or out the window.

Look, Nick, what’s wrong?

And that’s another thing.
Where do you come off calling me Nick?

http://www.script-o-rama.com/movie_scripts/i/its-a-wonderful-life-script.html

DoctoRx says:

http://online.wsj.com/article/SB10001424052748704193004574588183051587764.html

DECEMBER 10, 2009, 11:47 P.M. ET Stores’ Dilemma: To Deploy Discounts Now or Hold the Line

. . . The first week of December, typically a lackluster time in the wake of Black Friday, was particularly slow. Sales for the week ended Dec. 5 fell 18% from the prior-week period, which included Black Friday, according to market researcher ShopperTrak RCT Corp. Last year, when the recession was in
full force, sales fell a lesser 14%, according to the firm, which compiles shopping traffic at malls and uses sales statistics, as well as Commerce Department figures, for its estimate.

“After solid traffic the first couple of days, it looks like the middle of August out there,” said Stephen Baker, vice president of industry analysis for retail watcher NPD Group.

Ina Pickle says:

Lilguy, I cut way back. I made all the presents that I’m giving to the kids’ teachers; I made what I’m sending to my parents. I kept presents for siblings and their kids below $10. I’m shipping the whole mess to my mother, because she can parcel out the items to the family who will assemble there (saving on shipping). The in-laws are scattered, but I’m making their presents, too.

For my children and my spouse, I likewise kept it to a minimum. Normally my kids have one large gift and two small ones under the tree (in addition to what they get from Santa, who fills the stocking and gives a few additional small things). This year will feature one present under the tree per kid, and none of the presents is over $30. It is likely that my children will each open 5 or fewer presents total — from everyone — on Christmas morning.

I would agree that people SAY what they expect the questioner wants to hear, or what will make them sound virtuous, when they are asked. That probably has nothing to do with what they will actually do when no one is watching (or there would be nowhere near as many donuts sold as there are!). But when you ask the average mother in late November what her plans are regarding Christmas gifts, you are probably discussing a fait accompli, or at least you are talking to someone who has given it some serious thought. People vary widely in their approach, of course, but I guarantee you that my friends, family, and I are done shopping and were by December 4.