US credit shrinks at Great Depression rate prompting fears of double-dip recession

"There has been nothing like this in the USA since the 1930s. The rapid destruction of money balances is madness." US bank loans have fallen at an annual pace of almost 14% in the 3 months to August 09 (from $7,147bn to $6,886bn).. For the first time in the post- World War II era, we have deflation in credit, wages and rents and this is a toxic brew.It is unclear why the US Federal Reserve has allowed this to occur.

US credit shrinks at Great Depression rate prompting fears of double-dip recession - Telegraph

between 1998 and 2004, senior executives at Fannie manipulated its results to hit earnings targets and generate $115 million in bonus compensation.

Fannie had to restate its financial results by $6.3 billion.

In the rescue operation, the Treasury agreed to pony up as much as $200 billion to keep Fannie in the black, coughing up cash whenever its liabilities exceed its assets.

Treasury will, by Sept. 30, have handed over $45 billion to shore up the company’s net worth

Almost two years later, in 2006, Fannie’s regulator concluded an investigation of the accounting with a scathing report. “The conduct of Mr. Raines, chief financial officer J. Timothy Howard, and other members of the inner circle of senior executives at Fannie Mae was inconsistent with the values of responsibility, accountability, and integrity,” it said.

Fair Game - They Left Fannie Mae, but We Got the Legal Bills - NYTimes.com