Double Speak and the Economy

Bloomberg is reporting that the federal government has closed two more banks (both in Illinois). This brings the total closure of banks by the fed to 36 this year.Banks are being closed at the fastest rate in fifteen years according to the report.Authorities in the Obama administration keep contradicting themselves, insisting that the worst is over … and then add that the worst is yet to come. According to Bloomberg:U.S. regulators are signaling that economic conditions are improving. FDIC Chairman Sheila Bair said May 12 that banks have “moved beyond the liquidity crisis” of last year.“We are now in the cleanup phase,” Bair said in a speech in Washington. “But to be honest, there’s still more pain to go.”Blair seems incapable of making a non-contradictory statement. This kind of non sequitur is the gold standard of double speak coming out of Washington to “explain” the current economic situation.What are the facts?The...(Read Full Post)