Well, This Might Explain the Bank Failure Spike

It appears that the economy is slowing, with the last two quarters GDP disappointing.

1^st quarter GDP was revised down from a 1.9% annual rate to an 0.4% annual rate, and the 2^nd 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:

1. Collect Underpants
2. ?
3. 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.