Today’s Market Observation 06.15.2010 Mon Tue Wed Thu Fri Griess Archive

Debt, Deficits, Bank Failures & Libor/U.S. Treasury Spreads

BY ron Griess | june 15, 2010

The following chart shows Gross Federal Debt and Gross Federal Debt as a percentage of Nominal GDP.

0615.01

The following chart shows Gross Federal Debt and its 1 year, 5 years and 10 years rate of growth. The May, 2010 rates of growth are: 1 year - 14.76%, 5 years - 10.81% and 10 years - 8.69%.

0615.02

The following chart shows the U.S. Federal Budget deficit at the end of May, 2010.

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The following chart shows the U.S. Federal Budget deficit as a percentage of Nominal GDP. Using annual statistics the record deficit was 13.00% in 1945. Using quarterly statistics, the previous record was 6.57% for the 3rd quarter of 1975.

0615.04

The following chart shows the number of Bank Failures reported weekly by the FDIC since June 27, 2008.

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The following chart shows the cumulative number of Bank Failures reported weekly by the FDIC for the years 2008, 2009 and 2010.

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The following chart shows the number of Problem Institutions reported by the FDIC, annually for the years 1990 to 2005 and quarterly thereafter through the first quarter of 2010.

0615.07

The following chart shows the number of Bank Failures reported by the FDIC annually since 1934 and the Nominal Value of Total Deposits held by said banks at the time of their failure.

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The following chart shows the number of Bank Failures reported by the FDIC annually since 1934 and the Inflation Adjusted Value of Total Deposits held by said banks at the time of their failure.

0615.09

The following chart shows the spread between the 3 month Libor yield and the 3 month U.S. Treasury yield.

0615.10

The following chart shows the spread between the 1 year Libor yield and the 1 year U.S. Treasury yield. Is it suggesting that some stress is starting to build in the credit markets?

0615.11

Ron Griess

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