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Guest Post: FInancial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

This is because the economy has been gaining momentum, however modest, from the tax cuts and deregulation. annually since 2009, while the record expansion of the 1990s saw growth of 3.6%. As well as the economy has been doing from the momentum of tax cuts and reduced regulation, there are always looming issues. since that time.

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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

Economic growth picked up strongly in the second quarter, with a reading of +4.2%, as momentum from the tax cuts and deregulation pushed spending and investment higher. since the current recovery began in June, 2009. Fiscal stimulus in the form of tax cuts, especially for corporations, led to spikes in investment and spending.

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What's With Regulator Agita Over Bank Commercial Real Estate Lending?

Jeff For Banks

But isn't fast growth by itself an indicator of increased risk of failure, regardless of the loans that fueled the growth? Risk mitigants tend to lag growth, especially fast growth. And success is the great mollifier to risk managers that wish to take away the punch bowl when the party's rockin'.

Lending 60
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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

In fact, inflation has been less than 2%, the Fed’s presumed target, since 2009. Tax cut and tax reform proposals have been floated. I believe that tax cuts will spur economic growth, but only if they do not increase government borrowing and the federal deficit. Interestingly, her term on the FOMC does not end.

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Predicting the Next Banking Crisis Is a Fool’s Game. Not Learning From the Last One: Equally Foolish

Jeff For Banks

When the Taxpayer Relief Act of 1997 passed, the top capital gains tax rate was lowered, providing yet another incentive for equity speculators to pour money into the fledgling internet industry. Although community banks did not lend to sub-prime borrowers in any meaningful way, did we participate? What caused it?

FDIC 78
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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

The promises included tax cuts to 15% (although a much less dramatic decrease is expected), repeal and replacement of ObamaCare (stalled in the Senate), regulatory reform (some energy rules relaxed, but not much else), infrastructure spending to repair and replace our crumbling structures, roads, airports, electrical grids, etc.

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Guest Post: Quarterly Financial Markets and Economics Update by Dorothy Jaworski

Jeff For Banks

Since the recovery began in June, 2009, real GDP growth has averaged 2.3%. The two year Treasury yield reached 1.26%, its highest level since August, 2009 and the ten year Treasury yield reached 2.58%, its highest level since September, 2014. In the early 1980s, the Reagan tax cuts took two years to push GDP growth above 3.0%