It appears that the economy is slowing, with the last two quarters GDP disappointing.
1st quarter GDP was revised down from a 1.9% annual rate to an 0.4% annual rate, and the 2nd GDP disappointed, coming in at a 1.3% annual rage, below the 1.6% forecast.
So, as the (already grossly inadequate) stimulus has run out, the economy has sputtered to a halt.
No worry though, austerity will create growth by:
- Collect Underpants
- ?
- Profit
What this has to do with bank failures?
The fact that they are a lagging indicator.
You see banks become insolvent when too many of their loans go bad, and those loans go bad following the economy tanking, not before.
We are in a double dip recession in all but the NBER ruling.