34 banks, including AIG and CIT, miss their TARP payments – naked capitalism
Consumers deleveraging (1) Revolving credit balances down, but outstanding payments up – Felix Salmon
Consumers deleveraging (2) Non-revolving credit is up – naked capitalism
And, the US starts testing its exit strategy – FT
The dollar rose, in unusual circumstances. Big names in the Obama administration and at the Fed have recently shown support for a strong dollar as it has been falling (Bernanke; Summers and Geithner). But a greater lift came from the East, as traders reported Asian central banks buying the dollar, perhaps to redress their export positions versus dollar-pegged China.
The dollar’s fall has wiped out much of the recent rise in equities. Sadly the fall won’t help those owing dollars, if they are paid in dollars. The Federal Housing Administration – which insures lenders – has admitted to Congress that 20 per cent of its 2008 loans and 24 per cent of 2007 loans could face serious problems. A former Fannie Mae executive is more blunt, stating the FHA is destined for bailout. And if that sounds horribly familiar, consider banks struggling to make payments: 34 financial institutions, including AIG and CIT, failed to pay their TARP dividends in August. The number is almost double the rate at the last pay date in May, 19. This news comes just as the Fed starts testing its exit strategy.
(in part - Emma Saunders of FT. LINK in post header)
