Federal Reserve

Federal Regulator Details Crazy Risk-Taking By Banks, Blames Fed

by Wolf Richter •  • Comments Off on Federal Regulator Details Crazy Risk-Taking By Banks, Blames Fed

Banks are again taking the same risks that triggered the financial crisis, and they’re understating these risks. It wasn’t an edgy blogger that issued this warning but the Office of the Comptroller of the Currency. And it blamed the Fed’s monetary policy.

Investment Bank: The End Of US Economic Growth

by Wolf Richter •  • Comments Off on Investment Bank: The End Of US Economic Growth

“We fear that, once the effects of monetary stimulus disappear in the US, the weakness of the economy due to income inequalities may suddenly be revealed.”

Canary In A Handbag: Why Coach Hit The Skids

by David Stockman •  • Comments Off on Canary In A Handbag: Why Coach Hit The Skids

Coach just had an earnings fiasco. Sales plunged 21%. Prospects are worse for the period ahead. Store closings are coming. That’s the payoff for playing the destructive game of the Wall Street casino.

Housing Hit the Wall of Wall Street in May

by Wolf Richter •  • Comments Off on Housing Hit the Wall of Wall Street in May

It always starts with a toxic mix: Home sales plunged and inventories jumped in May. The housing market is buckling under its own inflated weight.

Fed’s Bullard: ‘The Bubble Was Developing Under Our Noses’

by Wolf Richter •  • Comments Off on Fed’s Bullard: ‘The Bubble Was Developing Under Our Noses’

Wiping out in one fell swoop six years of carefully orchestrated propaganda, St. Louis Fed President James Bullard admitted the Fed had dropped the ball during the prior bubble that blew up the financial system, and that it’s dropping the ball again during the current bubble.

Last Time this happened, The Financial Crisis Broke Out

by Wolf Richter •  • Comments Off on Last Time this happened, The Financial Crisis Broke Out

There comes a time when risk just disappears, when nothing can go wrong, when there are no dark clouds on the horizon. The Fed has a measure for it: the Financial Stress Index.