sabato 18 luglio 2009

iShares FTSE/Xinhua China 25 Index (FXI)

Chart of the Day

With much of the global economy under severe stress, today's chart focuses on one pocket of strength – China. In the midst of what is one of the most severe economic downturns of the past century, China's economy managed to grow by 7.9% for the year ending in Q2 2009. For some perspective, today's chart focuses on Chinese stocks and presents the current trend of the iShares FTSE/Xinhua China 25 Index (FXI). As today's chart illustrates, Chinese stocks have endured what amounts to an extremely wild ride since 2005. The FXI trended upward at an ever accelerating rate (i.e. parabolic) from 2005 to Q4 2007. As the credit bubble began to unravel, so too did Chinese stocks with the FXI trending downward at an ever accelerating rate from Q4 2007 to Q4 2008. However, Chinese stocks found their footing and have surged over 100% since their 2008 trough (8% GDP growth will do that for you) and are currently trading near the upper end of a nine-month trend channel.

Monte Compatri: La Destra attiva nel sociale

Monte Compatri: La Destra attiva nel sociale

Un banco alimentare, un servizio di assistenza legale e uno di supporto psicologico

«In un momento storico dove i Partiti si litigano tra loro per una poltrona, La Destra concentra i propri sforzi per alleviare le sofferenze e sopperire alle carenze di uno Stato che abbandona i ceti deboli della sua società»

(Monte Compatri - Politica) - Dal mese di settembre i militanti della sezione collegiale del movimento politico La Destra di San Cesareo, Monte Compatri e Zagarolo porteranno avanti un programma di supporto sociale alle popolazioni dei territori dei tre comuni interessati. Nello specifico, presso la sede della sezione "Duilio Gianfriglia", sita a Monte Compatri in via Intrecciatagli 27 sarà disponibile un servizio di supporto psicologico (valutazione psicologica) e un servizio di assistenza legale completamente gratuito. Inoltre dalla prima settimana di agosto sarà attivato un servizio di distribuzione di generi alimentari (Banco Alimentare), completamente gratuito, nei confronti delle categorie sociali più deboli e sofferenti. Le famiglie e i singoli che potranno fruire di questo servizio saranno individuati insieme agli assistenti sociali e ai parroci presenti nell'area dei tre comuni.

Il Banco Alimentare, nella prima fase, avrà due punti di distribuzione, il primo presso la sezione di Monte Compatri e il secondo sul territorio del comune di Zagarolo in località Valle Martella. Per poter accedere ai servizi sopra menzionati i cittadini potranno rivolgersi presso i servizi sociali dei comuni interessati, presso i parroci delle parrocchie di appartenenza o direttamente presso la struttura del Movimento. È prevista inoltre dal mese di Settembre una serie di conferenze, la prima delle quali si svolgerà presso l'aula consiliare del comune di Monte Compatri (stanno per essere presentate le autorizzazioni) avente per oggetto il tema del "Signoraggio bancario e della riserva frazionaria". Con cadenza bimestrale verranno organizzati dibattiti su temi aventi rilevanza sociale. «Questo è il nostro modo d'intendere la Politica, tra la gente e per la gente, portando avanti la parte buona dell'Idea la quale dagli anni venti in poi ha dato vita allo stato sociale italiano. In un momento storico dove i Partiti si litigano tra loro per una poltrona, in vista delle prossime elezioni regionali, la base e i dirigenti della La Destra di Monte Compatri, San Cesareo e Zagarolo, concentrano i propri sforzi per alleviare le sofferenze e sopperire alle carenze di uno Stato che abbandona i ceti deboli della sua società».

US concerns of breakdown in law and order

Paulson reveals US concerns of breakdown in law and order

By Stephen Foley in New York

Independent, Friday, 17 July 2009

The Bush administration and Congress discussed the possibility of a breakdown in law and order and the logistics of feeding US citizens if commerce and banking collapsed as a result of last autumn's financial panic, it was disclosed yesterday.

Making his first appearance on Capitol Hill since leaving office, the former Treasury secretary Hank Paulson said it was important at the time not to reveal the extent of officials' concerns, for fear it would "terrify the American people and lead to an even bigger problem".

Mr Paulson testified to the House Oversight Committee on the Bush administration's unpopular $700bn (£426bn) bailout of Wall Street, which was triggered by the failure of Lehman Brothers last September. In the days that followed, a run on some of the safest investment vehicles in the financial markets threatened to make it impossible for people to access their savings.

Paul Kanjorski, a Pennsylvania Democrat, asked Mr Paulson to reveal details of officials' concerns, which were relayed to Congress in hasty conference calls last year. The calls included discussion of law and order and whether it would be possible to feed the American people, and for how long, according to Mr Kanjorski.

"In a world where information can flow, money can move with the speed of light electronically, I looked at the ripple effect, and looked at when a financial system fails, a whole country's economic system can fail," Mr Paulson said. "I believe we could have gone back to the sorts of situations we saw in the Depression. I try not to use hyperbole. It's impossible to prove now since it didn't happen."

The Oversight committee is investigating the takeover of Merrill Lynch by Bank of America, a deal forged in the desperate weekend that Lehman Brothers failed, and which later required government support because of Merrill's spiralling losses.

Mr Paulson defended putting pressure on Bank of America when it had last-minute doubts about the deal in December. Not to have done so could have rekindled the "financial havoc" the bailout had calmed.

Fiscal ruin of the Western world

Fiscal ruin of the Western world beckons

For a glimpse of what awaits Britain, Europe, and America as budget deficits spiral to war-time levels, look at what is happening to the Irish welfare state.

Events have already forced Premier Brian Cowen to carry out the harshest assault yet seen on the public services of a modern Western state. He has passed two emergency budgets to stop the deficit soaring to 15pc of GDP. They have not been enough. The expert An Bord Snip report said last week that Dublin must cut deeper, or risk a disastrous debt compound trap.

A further 17,000 state jobs must go (equal to 1.25m in the US), though unemployment is already 12pc and heading for 16pc next year.

Education must be cut 8pc. Scores of rural schools must close, and 6,900 teachers must go. "The attacks outlined in this report would represent an education disaster and light a short fuse on a social timebomb", said the Teachers Union of Ireland.

Nobody is spared. Social welfare payments must be cut 5pc, child benefit by 20pc. The Garda (police), already smarting from a 7pc pay cut, may have to buy their own uniforms. Hospital visits could cost £107 a day, etc, etc.

"Something has to give," said Professor Colm McCarthy, the report's author. "We're borrowing €400m (£345m) a week at a penalty interest."

No doubt Ireland has been the victim of a savagely tight monetary policy e_SEmD given its specific needs. But the deeper truth is that Britain, Spain, France, Germany, Italy, the US, and Japan are in varying states of fiscal ruin, and those tipping into demographic decline (unlike young Ireland) have an underlying cancer that is even more deadly. The West cannot support its gold-plated state structures from an aging workforce and depleted tax base.

As the International Monetary Fund made clear last week, Britain is lucky that markets have not yet imposed a "penalty interest" on British Gilts, given the trajectory of UK national debt – now vaulting towards 100pc of GDP – and the scandalous refusal of this Government to map out any path back to solvency.

"The UK has been getting the benefit of the doubt, both in the Government bond market and also the foreign exchange market. This benefit of the doubt is not going to last forever," said the Fund.

France and Italy have been less abject, but they began with higher borrowing needs. Italy's debt is expected to reach the danger level of 120pc next year, according to leaked Treasury documents. France's debt will near 90pc next year if President Nicolas Sarkozy goes ahead with his "Grand Emprunt", a fiscal blitz masquerading as investment.

There was a case for an emergency boost last winter to cushion the blow as global industry crashed. That moment has passed. While I agree with Nomura's Richard Koo that the US, Britain, and Europe risk a deflationary slump along the lines of Japan's Lost Decade (two decades really), I am ever more wary of his calls for Keynesian spending a l'outrance.

Such policies have crippled Japan. A string of make-work stimulus plans e_SEmD famously building bridges to nowhere in Hokkaido e_SEmD has ensured that the day of reckoning will be worse, when it comes. The IMF says Japan's gross public debt will reach 240pc of GDP by 2014 e_SEmD beyond the point of recovery for a nation with a contracting workforce. Sooner or later, Japan's bond market will blow up.

Error One was to permit a bubble in the 1980s. Error Two was to wait a decade before opting for monetary "shock and awe" through quantitative easing.

The US Federal Reserve has moved faster but already seems to think the job is done. "Quantitative tightening" has begun. Its balance sheet has contracted by almost $200bn (£122bn) from the peak. The M2 money supply has stagnated since January. The Fed is talking of "exit strategies".

Is this a replay of mid-2008 when the Fed lost its nerve, bristling over criticism that it had cut rates too low (then 2pc)? Remember what happened. Fed hawks in Dallas, St Louis, and Atlanta talked of rate rises. That had consequences. Markets tightened in anticipation, and arguably triggered the collapse of Lehman Brothers, AIG, Fannie and Freddie that Autumn.

The Fed's doctrine – New Keynesian Synthesis – has let it down time and again in this long saga, and there is scant evidence that Fed officials recognise the fact. As for the European Central Bank, it has let private loan growth contract this summer.

The imperative for the debt-bloated West is to cut spending systematically for year after year, off-setting the deflationary effect with monetary stimulus. This is the only mix that can save us.

My awful fear is that we will do exactly the opposite, incubating yet another crisis this autumn, to which we will respond with yet further spending. This is the road to ruin.

Propaganda - Edward L Bernays

Propaganda - Edward L Bernays 1928

THE conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.

We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society.

Our invisible governors are, in many cases, unaware of the identity of their fellow members in the inner cabinet. They govern us by their qualities of natural leadership, their ability to supply needed ideas and by their key position in the social structure.

Japan: There will be a truth commission

There will be a truth commission convened when the Democratic Party of Japan takes power

by Benjamin Fulford

In the past senior members of Japan's opposition Democratic Party of Japan have told me they intend to set up a South African style truth commission if they ever get power. Since all the opinion polls show they are set to get power in the election to be held on August 30th, that means the truth may start coming out as early as this fall. The most important testimony will that about CIA dirty tricks and murders in Japan. The world will finally be told the truth about how arch-Nazi Heinz (Henry) Kissinger had Prime Minister Kakuei Tanaka removed from power. We will also learn how Prime Ministers Obuchi, Ohira, Takeshita and Hashimoto were murdered for not be obedient enough. Hopefully the Japanese murder team members will appear in Parliament and on TV and describe how they carried out each murder on the orders of their Nazi handlers.

There will be a lot of stuff happening this autumn so I recommend that everyone rest up this summer.

Hollywood celebrity attacks Federal Reserve

Hollywood celebrity attacks Federal Reserve

Daily Bell Archive

Issue 350 • Friday, July 17, 2009

Eric Thayer/Getty Images

Henry Ford was probably right when he said, "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." That's why I believe, along with Ron Paul and others that the Federal Reserve needs to be abolished. The U.S. ran just fine without it -- before its inception, in 1913. We had financial crises before its existence and after it, but its intervention has been proved historically only to make things worse. Our Founders never would have tolerated its abusive power or methods of bribery. It is a detriment to not only the economy but also the very existence of a representative form of government and all Americans who want to experience true freedom. In the meantime, however, until some act of God or the people do away with that self-regulating and fraudulent government agency, the least we can do is get the Federal Reserve under control by passing HR 1207 in the House and S 604 in the Senate. Write today to demand that your representatives support the bills that require an audit of the Federal Reserve. - Human Events

Dominant Social Theme: What celebs say!

Free-Market Analysis: Chuck Norris may not seem as big a celebrity as some, but he is suddenly carving out a niche for himself that is unusual ... as a financially literate thespian. More than that, Norris is what would be considered these days a Conservative Republican, so his call for the abolishment of the Federal Reserve could be seen as a most dangerous widening of the coalition that is forming against the American central bank.

What is the coalition? Read along. We have already pointed out in previous issues that there are two factions in the Republican party competing for power: Libertarian Republicans and Conservative Republicans. In fact, the Republican party itself is a sort of hodge-podge of vested establishment interests. The Libertarian Republican wing of the Republican party actually has an imposing pedigree, however, as it harkens back to Thomas Jefferson's Democratic-Republican party. And Jefferson's sociopolitical viewpoints are historical in nature, traversing literally thousands of years of republican history, all the way back to the ancient Greeks who invented republican polity - the idea of communal, controllable government at a grass roots level.

Jefferson actually would be at home with the Ron Paul-led Libertarian Republicans. He would recognize Ron Paul's financial literacy, his emphasis on the Invisible Hand of the marketplace and most importantly, his anti-war, anti-banking stances. Jefferson would NOT be at home with the Conservative Republican point of view espoused by such varied proponents as Rush Limbaugh, Hannity and most of last year's Republican candidates. This variant of Republicanism is one that emphasizes an aggressive and far-flung standing army, an ever-expanding domestic security apparatus and an ever-more powerful executive branch with an increasingly entrenched belief structure that the President is somehow larger than the law of the land.

As we have pointed out previously, Conservative Republicans - really, the mainstream power brokers of the Republican party - have set out on a rebranding mission to salvage what they can out of the rubble left behind by former President Bush's big-government compassionate conservatism. In fact, Bush's viewpoints were in line with the larger Republican party, but the results blew the party apart. In simplest terms, the party leaders, including Bush, used the Jeffersonian rhetoric of limited government to get elected but practiced governmental corporatism and militarism.

Now, out of the rubble, rises Republican Conservatism, with the same small-government message - though still intermingled with support for a large security apparatus and military presence abroad. The other determining identifier of Conservatism until recently has been its disinterest in identifying the difficulties of the modern business cycle with the Federal Reserve. But now, most importantly, with this recent article by Chuck Norris, that may be changing.

And that is why we speak of the widening of the coalition. Of course, you, dear reader, may not have realized that Chuck Norris was writing articles, and that he identified himself as a Conservative - as a growing number of previous Republicans do - but he does. That is why the Daily Bell is written, to help you notice these things. Norris is a conservative, and now he has come out against the Federal Reserve. Something new and shiny.

In our attempts to document this larger story - the most important business story of the past 100 years! - we have begun listing all the ways the Fed is foundering. It is being sued, grilled, audited (potentially) and now even the Conservative wing of the Republican Party is beginning to turn on it. Again, this is the real importance of Chuck Norris' recent article. Here is some more from it:

The Federal Reserve is the Freemasonry of government agencies. It is a virtual secret society unto itself -- a group of unelected brokers who hold the value of our dollar in the palms of their hands. This one agency, with its power to raise and lower interest rates, has exercised more control over the economy than any other government body.

So with that type of single-handed power, why should we be surprised that the U.S. Senate blocked a bill last week to audit the Federal Reserve? 'Tis true! Rep. Ron Paul and more than half of his colleagues in the House co-sponsored the Federal Reserve Transparency Act, HR 1207, which they hope to have hearings on soon. On the Senate side, Sens. Jim DeMint, Mike Crapo and David Vitter co-sponsored S 604, companion legislation introduced by Bernie Sanders. But it was stopped cold before even being introduced on the floor on "procedural grounds."

These are strong words, astonishingly strong from a self-identified conservative. Rush Limbaugh has spent decades on the radio without ever mentioning the Federal Reserve and other top hosts like Sean Hannity and Mark Levine have been no more apt to mention its entanglements with the larger economy than the Republican "conservatives" that ran for president in the most recent elections. If indeed Republican Conservatives are going to start lobbing harsh critiques at the Federal Reserve to accompany those being hurled by Republican Libertarians, then the Fed is in even deeper trouble than it has seemed to be.

The Fed and the larger central banking establishment basically control the world's money and therefore its industrial output and also the global society's larger industrial conversation. This vision is manifested in a series of dominant social themes that make up the content of this modest newspaper. These are virtually cultural memes and include "global warming," "peak oil," the "war on terror," etc. But the Internet has interrupted this conversation and blown apart much of the inevitability of the elite memes.

Conclusion: Central banking is under increasing attack, the European Union is fraying around the edges and gold and silver continue to gain ground. We've always advised that our readers should watch the price of gold and silver as a kind of proxy indicator for the ongoing effectiveness and persuasiveness - or lack thereof - of the monetary elite. But readers may wish to monitor the ongoing degeneration of support for the Federal Reserve via announced opponents as well. Call it the Central Banking Index.

A world whose time is up

July 16, 2009

Jesus on a White Horse

by Richard C. Cook

During the two years since I retired as a federal government analyst, I have published two books and over 60 articles on public policy issues. In January 2007 I published “Challenger Revealed: An Insider’s Account of How the Reagan Administration Caused the Greatest Tragedy of the Space Age.” I then began to write about the economic crisis, including recommendations for radical change to our debt-based bank-centered monetary system. I wrote through the experience gained in the field of public finance during 22 years of service with the U.S. Treasury Department. This culminated in publication of “We Hold These Truths: The Hope of Monetary Reform.” I now feel I have gone far enough in commenting on current events, as I turn increasingly to my commitment to spirituality that has been central in my life since childhood. I plan to continue writing, now only as topics are revealed to me through my spiritual practice. My first such offering is to relate a dream I had recently.

Jesus Christ is sitting on a white horse. He looks like the popular Biblical Jesus: long hair, a beard, a white robe. I see Him and his horse in profile from a moderate distance. He and the horse are absolutely still. He radiates strength, stillness, and confidence.

In every direction, spreading to the horizon, is rubble, the remnants of human civilization, piled a couple of feet high on the ground. The wreckage is vast, of a reddish hue, so annihilated that no specific object is recognizable. Smoke or mist wafts from the rubble. In the distance, on the horizon, is a pale reddish light as nightfall approaches.

I feel no fear. I feel that all is as it must be. The sight of the Lord brings awe and peace.

I make no attempt in this article to interpret what I have seen in my dream though the wreckage obviously pertains to the existing condition of the world. Whether the desolation is prophetic of the onrushing disaster to civilization many are predicting I cannot say. The other alternative is that the rubble symbolizes the spiritual condition of present-day humanity. Many of the people on earth today, especially those in charge of society, are materialists and atheists, consumed by fear, selfishness, violence, egotism, militarism, and greed, spiritually either deeply asleep or dead, destroying through negligence whole nations and even perhaps the planet we live on. Then there are the many who passively acquiesce in the ongoing horror or those who try to cover it up through entertainment, denial, and triviality. Yet Jesus Christ is here, watching and waiting, perhaps allowing events to take their course, but available to inspire those who yet have eyes to see. The white horse is reminiscent of the Book of Revelations: “And I looked, and beheld a pale horse: and his name that sat on him was Death, and Hell followed with him.” I also think of the song Johnny Cash sang in his old age: “The Man Comes Around,” where, at the end, Cash speaks those same words. The fact that in my dream Jesus sat astride the horse makes me realize that He was the one who through His resurrection conquered death. But who will now turn to Him? Who will “seek first the Kingdom of Heaven and its righteousness”? Now is the time to “come out and be separate.” A world where war is viewed as normal, where human beings knowingly and willingly torture other human beings to death then lie about it, where governments terrorize their own populations, where millions are deliberately subjected to addictive legal and illegal drugs, where the food supply is degraded for profit, where radiation is purposely introduced into the environment through devices like depleted uranium, where space is viewed as the ultimate high ground for weapons deployment, where assassination is official policy, where pandemics are declared to market dangerous vaccines, where trillions are lavished on financial institutions while families are denied adequate income, where initiative is smothered by taxes and regulations, where justice is bought and sold, where the laws favor mainly the rich, where the media put people to sleep with pablum and nonsense, and where the intellectuals justify the status quo is a world whose time is up.

Imploded: Temecula Valley Bank, CA

Temecula Valley Bank, Temecula, CA

July 18, 2009 – 9:04 am

The siezure of Temecula Valley Bank, Temecula, CA, brings to 57 the number of FDIC bank closings of 2009.

Temecula Valley Bank, Temecula, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank and Trust Company, Raleigh, North Carolina, to assume all of the deposits of Temecula Valley Bank, excluding those from brokers.

Temecula Valley Bank’s eleven offices will reopen on Monday as branches of First-Citizens Bank and Trust Company. Depositors of Temecula Valley Bank will automatically become depositors of First-Citizens Bank and Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing bra

Be sure to visit the official FDIC web page forTemecula Valley Bank, Temecula, CA, if you should have any additional questions.

Imploded: Vineyard Bank, National Association

Vineyard Bank, National Association, Rancho Cucamonga, CA

July 18, 2009 – 8:54 am

The FDIC continues it’s torrid pace closing bank number 56 of 2009 tonight, Vineyard Bank, National Association, Rancho Cucamonga, CA.

Zions Bancorporation’s California Bank & Trust unit acquired the deposits of Vineyard Bank, one of four lenders seized yesterday by regulators. The failures will cost the Federal Deposit Insurance Corp. a total of $1.09 billion.

California Bank & Trust in San Diego said it assumed $1.5 billion in deposits and $1.4 billion in loans from Rancho Cucamonga, California-based Vineyard, which lost more than $100 million last year as builders defaulted on construction loans. Vineyard was closed by the Office of the Comptroller of the Currency and the FDIC was named receiver, the FDIC said in a statement.

Be sure to visit the official FDIC web page for Vineyard Bank, National Association, Rancho Cucamonga, CA, if you should have any additional questions.

Imploded: BankFirst, Sioux Falls, South Dakota

BankFirst, Sioux Falls, South Dakota

July 17, 2009 – 3:35 pm

The FDIC has made it’s 55th seizure of 2009. The victim: BankFirst, Sioux Falls, South Dakota. The FDIC appointed Alerus Financial, National Association, Grand Forks, North Dakota, as receiver.

BankFirst, Sioux Falls, South Dakota, was closed today by the South Dakota Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Alerus Financial, National Association, Grand Forks, North Dakota, to assume all of the deposits of BankFirst.

Please visit the official FDIC webpage for BANKFIRST for more information.

Imploded: First Piedmont Bank of Winder, Georgia

First Piedmont Bank, Winder, GA

July 17, 2009 – 3:15 pm

The FDIC is on the march tonight, claiming its 54th victim of 2009 and the 15th in Georgia. First Piedmont Bank of Winder, Georgia, was closed down by the agency tonight. First American Bank and Trust Company will assume all the failed bank’s deposits.

Winder. Ga.-based First Piedmont Bank became the state’s 15th bank failure late Friday, seized by state and federal regulators as part of the Peace State’s on-going banking crisis.

Located in Atlanta’s extreme northeastern suburbs near Athens, First Piedmont’s branches and deposits will be acquired by Athens-based First American Bank and Trust Co., according to a late Friday announcement by the Federal Deposit Insurance Corp.

The bank is the tenth to fail in Georgia this year, and the 15th since the banking crisis began in earnest in August 2008.

First Piedmont, as of July 6, reported $115 million in total assets and $109 million in deposits and two branch offices.

First American will assume all of the deposits of First Piedmont, paying $1.1 million in its bid for the customer accounts.

First American also agreed to purchase $111 million of the failed bank’s assets, with the FDIC agreeing to share in losses on up to $90 million of those assets.

The FDIC expects a $29 million loss to the Deposit Insurance Fund. Customers of First Piedmont will automatically become customers of First American.

The bank, founded in 1998, followed a now-familiar path to failure.

Like each of its predecessors, the bank bet too heavily on now-soured real estate construction loans, according to FDIC data.

Between 2004 and 2008, the bank’s loan portfolio doubled in size to nearly $100 million, primarily on residential construction loans. But those loans began to sour as home sales slumped dramatically through 2007 and into the following years, and the bank’s loan portfolio deteriorated.

By first quarter 2009, roughly one-third of the bank’s loan portfolio was classified as some form of problem, either delinquent or defaulted loans, or had become repossessed real estate.

By March 31, the bank’s Texas Ratio — a comparison of its total loan problems to total equity capital, which measure the bank’s ability to absorb losses — exceeded 400 percent. Any ratio above 100 percent indicates loan problems have outstripped the bank’s ability to absorb the losses.

The bulk of metro Atlanta bank failures so far have reported Texas Ratios in excess of 300 percent, or triple the problems to capital.

The computation came to prominence during the Savings & Loan Crisis of the 1980’s and 1990’s to highlight the loan problems at Texas institutions hard hit by the then-real estate downturn. The name stuck.

For more information, visit the official FDIC webpage for First Piedmont Bank of Winder, Georgia.