{"id":185323,"date":"2011-07-29T21:15:00","date_gmt":"2011-07-30T02:15:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2011\/07\/29\/well-this-might-explain-the-bank-failure-spike\/"},"modified":"2011-07-29T21:15:00","modified_gmt":"2011-07-30T02:15:00","slug":"well-this-might-explain-the-bank-failure-spike","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2011\/07\/29\/well-this-might-explain-the-bank-failure-spike\/","title":{"rendered":"Well, This Might Explain the Bank Failure Spike"},"content":{"rendered":"<p>It appears that the economy is slowing, with <a href=\"http:\/\/www.marketwatch.com\/story\/gdp-grows-slender-13-in-second-quarter-2011-07-29?reflink=MW_news_stmp\">the last two quarters GDP disappointing<\/a>.<\/p>\n<p>1<sup>st<\/sup> quarter GDP was revised down from a 1.9% annual rate to an 0.4% annual rate, and the 2<sup>nd<\/sup> GDP disappointed, coming in at a 1.3% annual rage, below the 1.6% forecast.<\/p>\n<p>So, as the (already grossly inadequate) stimulus has run out, the economy has sputtered to a halt.<\/p>\n<p>No worry though, austerity will create growth by:<\/p>\n<ol>\n<li>Collect Underpants<\/li>\n<li>?<\/li>\n<li>Profit<\/li>\n<\/ol>\n<p>What this has to do with bank failures?<\/p>\n<p>The fact that they are a lagging indicator.<\/p>\n<p>You see banks become insolvent when too many of their loans go bad, and those loans go bad following the economy tanking, not before.<\/p>\n<p>We are in a double dip recession in all but the NBER ruling.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It appears that the economy is slowing, with the last two quarters GDP disappointing. 1st quarter GDP was revised down from a 1.9% annual rate to an 0.4% annual rate, and the 2nd GDP disappointed, coming in at a 1.3% annual rage, below the 1.6% forecast. So, as the (already grossly inadequate) stimulus has run &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[973,1089],"tags":[],"class_list":["post-185323","post","type-post","status-publish","format-standard","hentry","category-economy","category-recession"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/185323"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=185323"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/185323\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=185323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=185323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=185323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}