EconomicCrisis.US

Canada was lucky to have “some tough lady” in banking industry regulator Julie Dickson, but U.S. regulators lack the spine to stand up to powerful banks as she did and so the government must go a step further to force banks out of risky businesses, according to key Obama financial-system adviser Paul Volcker.

While strong supervision from Ms. Dickson worked in Canada, “history suggests that is not enough” in the United States to prevent another financial crisis, Mr. Volcker said at a private event in Toronto on Tuesday evening.
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Two years ago, I pointed to yet another obvious economic crisis in the U.S.: the collapse of numerous, state economies. I was not alone. Several of the other commentators who were right about the U.S.’s economic collapse have made similar predictions.

We deserve no credit. With state spending skyrocketing, and state revenues collapsing at the fastest rate in history, even people who perform all their “arithmetic” with their fingers and toes should have been able to make this prediction. In other words, this comes as a total “surprise” to more than 90% of the brain-dead media-parrots. These zombies-with-keyboards continue to mindlessly repeat the “economic recovery” propaganda of Barack and Bennie and Timmie.
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Timothy Geithner’s role in calming the financial crisis landed him the coveted job of Treasury secretary last year. That same résumé is now dogging him.

In his next test, Mr. Geithner will find out this week how lawmakers are treating one of his main goals—revamping the nation’s financial regulations—when Senate Banking Committee Chairman Chris Dodd unveils his new bill. In Washington, where perception can take on the status of fact, the political woes facing Mr. Geithner are diminishing his authority.
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The U.S. trade deficit took an unexpectedly large turn for the worse in December, loading more foreign debt onto Americans and lengthening the odds against President Barack Obama’s effort to spark job growth by sharply boosting exports.

The Commerce Department report Wednesday, recording the third straight month of rising trade deficits, showed that exports continued to rebound at a solid pace in the final weeks of 2009, but a surge in oil imports wiped out the gain, leaving the country’s trade balance $40.2 billion in the red. That was up sharply from the $36.4 billion shortfall in November 2009.
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