Wells Fargo

The Economy: High jinx at the Circus on the Potomac highlighted this week. On Tuesday, Wells Fargo’s CEO was excoriated by Senator Elizabeth Warren. Her roasting included comments that the CEO should resign and that he should face criminal prosecution. She pointed out that he has made hundreds of millions as a result of the fraudulent account shenanigans at Wells. But if the 2007-2008 Financial Crisis is a guide, the Wells Fargo board will probably give their guy a raise and millions of additional stock options. Today saw the Fed report out of their latest 2-day meeting with no change in interest rates. This was the expected outcome. Asked if this was a political move inspired by the upcoming presidential election, Fed Chair Yellen denied that she leads a Clinton Fed. Lower for longer remains the name of the game.

Food for Thought: Financial markets usually lead the real economy both up and down. Here in San Diego, our ongoing street poll has begun to show weakness is some sectors of the San Diego economy. There is some evidence that the uncertainty in the financial markets is bleeding over into the real San Diego economy. What we’re hearing is that new money is slowing down. Business owners and executives appear to be taking more of a wait and see attitude towards new endeavors. Increasingly we’re hearing folks say, “I’m waiting for the other shoe to drop.” A recent San Diego Regional Chamber of Commerce poll shows San Diego business confidence at a 3-year low.

Music of the Week: Atlantic Five Jazz Band’s “Bar Music Moods – The Piano Edition Vol. 1”