The Great Bank Spinnery

Great chart on Calculatedrisk.blogspot.com about the average number of bank and thrift failures per year. The 1980's bank failures were huge and were just getting going when the greatest stock market rally of the century was just beginning in August 1982. As the chart reveals, from 1986 through 1992, banks and thrifts were averaging over 200 failures per year with over 500 in 1989. That year the DJIA rallied over 26%. You will not here it from the spinners on market news coverage because they love to stretch a good story based on data with no greater credibility than rumor. I am no bull as a history of this blog will attest, but from market bloggers to magazines, the negative feeding frenzy about current economic conditions is a joke. Fact is, from subsidized farming, to subsidized oil production, great interventions lead to significantly higher prices for whatever the federal of Fed green giants are accommodating. And they are pointing at stocks. The G is covering almost every marker out there and sewing the seeds for a run for the well baled. Don't kid yourself, this is all about fixing the up while everyone else is looking down.