Economics and Investing:

A Year Later, TARP Inspector General Barofsky Sees a ‘Far More Dangerous’ Financial Situation

Officials: Fed will need to boost rates quickly. (Thanks to El Jefe Jeff E. for the link.)

Bob G. sent the link to this Wall Street Journal piece: Plenty More Bank Losses Expected Globally; Additional $1.5 Trillion in Write-Downs Forecast by End of 2010

Account overdrawn: FDIC Fund Goes Negative. Although the US Treasury is the guarantor of last resort, it now won’t take much to trigger bank runs. (A hat tip to K.T. for the link.)

Items from The Economatrix:

Hard Times Good for Your Health

Marty Weiss: US Dollar Crashes Against Yen! Time to Act!

US Dollar Set to Be Eclipsed, World Bank President Predicts

FDIC Considers Calling for Bank Advances

Homeowners in Financial Trouble Often Re-Default

Fed is Developing New Exit Tools

Economy Dips at 0.7% Pace in Second Quarter