Imminent Financial Collapse?

[Pinktip]

http://www.globaleconomicanalysis.blogspot.com/

Great economics blog........Underlining concensus is "this isn't the big one." yet.....

[murnut]

Originally Posted by Pinktip

http://www.globaleconomicanalysis.blogspot.com/

Great economics blog........Underlining concensus is "this isn't the big one." yet.....

I love Mish.

Strange indeed though...what was BoA incentive to close on Merrill now, when tomorrow it would be half price or so?

Could the bleep be hitting the fan?

How much more bad news will it take?

Is it not obvious that the house of cards is collapsing?

[dolphin]

wow, questiny, you do amazing posts...always informative and intelligent.

how do you do it? you don't sleep do you...just reading these posts keep me up till wee hours of the morning and i realize i better get some balance in my life and take a break.

It is too dam late to fix any thing , i have an idea , bring down the financial system and restart ,i thing it will be the cheapest and fastest way .

exactly the same thing you do when you restart your pc when it freeses.

Also fannie and fredy must give evry american household a house (mortgage free) , and the banks must give loans (intrest free), this way they may return the faivor that we american tax payer are doing to bail them out now .

oh yes i almost forgot , we expect a nice (thank you card) in the mail too

what do you think ??

[Hiram]

From everything we have read and learned...this collapse, albeit seemingly haphazard, was a planned collapse of our system. I sense a group behind all of these events pulling and tugging on strings.

This is perhaps the early link in the chain...

The way runs on banks work...is that everybody gets the idea to get their money out at the same time...the trick is to figure it out before everyone else does. There is the rub.

[Rocky_Shorz]

the small regional banks are doing fine, it is just the Giants that are tumbling...

[murnut]

Must Watch

Worst far from over

http://money.cnn.com/video/ft/#/vide...allout.fortune[/quote]

[murnut]

Bank Armageddon: The FDIC is Strapped for Cash

By Moe Bedard on September 15th, 2008

The Federal Deposit Insurance Corp (FDIC) looks to be strapped for cash, just like the banks and the American people for which their cash, they protect. Much like Bear Stearns, Freddie and Fannie, now the FDIC may seek to borrow money from the Treasury Department AKA the American People, to see it through the inevitable tsunami of bank failures that are coming to a bank near you.

One doesn’t have to look far to see what bank failures can do to what they call “depositors”, also known as, people, who put their money in the bank. Do you think ALL your money is safe is a FDIC insured banking institution? Think again.

Let’s take a look back in the recent bank failure past at Fran Sweet, a depositor in the failed Superior Bank of Chicago ran by the billionaire family, the Pritzkers. I wrote about the Superior Bank failure back in March. Barack Obama was in Chicago at the time of the Superior Bank failure & has full knowledge of what went on and the cause of the collapse.

Meanwhile, roughly 1,000 depositors who had deposits above $100,000 in a Superior account—money above the FDIC-insured limit—lost about $65 million. Most of them were middle-class individuals, attracted by Superior’s high interest rates. [Ed. note: it is presence of FDIC itself that allows unsound banks to offer high interest rates like this.] In the three months just before the bank was closed, there was a surge of $9.6 million in uninsured deposits. Since about 54 percent of the uninsured money has since been repaid as Superior was sold off, the depositors have still collectively lost about $30 million. (That just happens to be the amount that the Pritzkers gave to the University of Chicago’s Pritzker School of Medicine earlier this year.)

Some of that money could have paid back Fran Sweet for the roughly $138,000 that she has still not recovered from her deposits at Superior. After retiring as a manager at a telecommunications company, Sweet was seeking a secure place to put her entire retirement savings of about $500,000. “I knew the Pritzkers were owners of the bank,” she says, “and they were a reputable name in Chicago. I had no idea that the bank was in trouble.”

Fran sweet as yet to receive all the money she deposited in the failed bank. 7 years later and she is still trying to seek justice and most of all, her money.

Wall Street Journal:

“I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses,” Chairman Sheila Bair said in an interview with the paper.

Bair said such a scenario was unlikely in the “near term.” With a rise in the number of troubled banks, the FDIC’s Deposit Insurance Fund used to repay insured deposits at failed banks has been drained. It appears that Ms. Bair is sending us signals of an impending reality that WILL come like she has in the past in regards to the adjustable rate and Alt A mortgages that are wreaking havoc on borrowers everywhere.

A woman unafraid to speak the truth, Sheila Bair has been one of the most pro consumer, pro loan modification and anti foreclosure advocates that heads any government agency to date. It has been obvious from my research over the last 18 months that Ms. Bair is obviously the most educated, experienced and has the most common sense when it comes to dealing with the crisis at hand.

The borrowing from the Treasury could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the WSJ said.

The borrowed money would be repaid once the assets of that failed bank are sold.

In a bid to replenish the $45.2 billion fund, Bair had said on Tuesday that the FDIC will consider a plan in October to raise the premium rates banks pay into the fund, a move that will further squeeze the industry.

The agency also plans to charge banks that engage in risky lending practices significantly higher premiums than other U.S. banks, Bair said.

The last time the FDIC had borrowed cash from the Treasury was during the savings and loan crisis in the early 1990s after thousands of banks were shot down.

This time, this crisis, will be worse, much worse……………………………………..

http://loanworkout.org/2008/09/bank-...pped-for-cash/

[visual co-creator]

*

[Rocky_Shorz]

our big unanswered question is why didn't they wait until today when it would have been worth 25B

who was holding the shotgun for this wedding?

[murnut]

Ken Lewis...CEO of BoA is on cnbc right now answering that question.

There was some concern....according to him, that there were other suitors....seems like total bs to me, but it is possible a sovereign wealth fund, or two were in the mix.

[visual co-creator]

*

[Rocky_Shorz]

AIG is tanking fast, down 70% today already, Wamu down to almost $2

For those of us who are not "big finance savvy" it's hard to envision the collapse. The grocers still have aisles and aisles of 300 different kinds of the same product. 3/4ths of the Sunday paper is advertisments for big screen tvs and rooms of furniture. We Americans are "spoiled". We take all this for granted and most joes/jills will not comprehend the situation until THEIR bank closes. I have never appreciated the financial gurus until now. Thank you for your honest views... Avalon is verily a no spin zone. kmm

[QUESTINY]

Martell you are on to something. Everyone needs to understand our JIT system. The aisles are full now but availability will be the key concern next year.

[Zarathustra]

Originally Posted by QUESTINY

Martell you are on to something. Everyone needs to understand our JIT system. The aisles are full now but availability will be the key concern next year.

That's a great point Q, most people don't realize that the grocery stores in their cities and towns carry only about a 3 to 5 day supply of food.

[Toymachines]

Whitehouse with Screen over entrance...

http://dailykos.com/storyonly/2008/9...475/925/599123
I wonder who is coming in and out of that door with financial chaos amok in our economy? Seriously, who is saving... err owning our asses?

[Allan]

test