Imminent Financial Collapse?

[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]

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[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]

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[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.

[Greg10036]

I look at the Lehman situation as a good sign that the good ole boy system has hit the skids. They have run out of money to bail each other out and are starting to feed on their own dead corpses to keep solvent such as the Bank America buyout of Merrill Lynch. Freddy and Fannie would have bellied up also had not the EU screamed at Wall street and Bernake to do something about it so that they would not tank. The really bright side of this is two things.

1) For the first time in US history, our economy is teasing itself from the Laws of Admiralty that link perpetual US debt to the Bank of England and it's hedge funding which is estimated at 60 trillion dollars US. The whole point of the Federal Reserve is to hide that hedge funding from the world. I wont go into a diatribe about how we could end world hunger etc if that kind of money were available to the world. Suffice to say, this is a good thing to see disappear.

2) Another thing happening at the state level is that most state governments are solvent. We just had a massive tax break in Indiana on the heels of this mortgage Ponzi scheme being exposed and this has to do with the states distancing themselves from the Federal banksters. There are also several states developing their own mints to create their own money. On a state level we are healthy. The reason for this is that states are bracing themselves for a competitive inter-state level of commerce once the federal government bellys up. The state leaders know it is coming.

I remember about 12 years ago when Warren Rudman, who was one of the authors of the Gramm-Rudman-Hollings deficit reduction law had just finished 12 years in the Senate. He was on Jim Lehrer's Report. Lehrer asked Rudman if he was frustrated he did not get anything done while in the senate. Rudman calmy responded that the US was heading towards a federal bankruptcy. He said it would be unique in that the federal government would bankrupt, but not regional government. From what I am seeing, Rudman's prophecy is starting to jell. This does not mean we will not have hard times, but if Americans stick together we can come out of this with something better that will allow us to fulfill the constitutional principles upon which this country was founded. Keep the faith. Love and Peace.
Greg

[stresswon]

Originally Posted by ktm

The collapse seems upon us. The question is what is going to be our reaction?

a). Run for the Hills.

b). Stay where you are, bury your head in the sand like an ostrich.

c). Keep calm, arm yourself, make a survial plan for your family.

A) Already have.

B) See A)

C) Yes.


I live on a mountain. Many lakes nearby. Been watching "Survivorman" and "Man Vs Wild" to get a jump on things. Better get used bear meat. Mad deer around too. I'll just miss my PS3!

[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?

[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.

[Myra]

Originally Posted by ktm

The collapse seems upon us. The question is what is going to be our reaction?

a). Run for the Hills.

b). Stay where you are, bury your head in the sand like an ostrich.

c). Keep calm, arm yourself, make a survial plan for your family.

The financial problem that we are witnessing is overwhelming. We have been in a recession for two years already. Most middle class families have no savings to move out of their homes and even if they tried to sell their homes the market is so soft that buyers are few and far between and want a bargain.

Most Americans are up to their necks in debt. We are forced to look within ourselves to learn who we are. Are we going to panic or are we going to calmly live day by day? The is another problem, too. How are you going to deal with family members that dont want to hear the truth about the current economic situation?

After carefully reviewing options, I personally have decided to arm myself. I am creating a exit strategy n secret. I live in Southern California, the key is where can I get my family to in a State of Emergency?

I'm currently looking for a shelter within 100 miles of Los Angeles wherein I can have an unlimited water supply, which is easily defended(on high ground), and self sufficient. Of course, i don't want to sound paranoid, but everything that has been proported as coming down is occurring on a rapid and excellerating pace. Are there any suggestions as to where to go?

I have done a cursory review and it appears that Idywild is a possiblility...

Getting out of So Cal completely would be the best thing to do if that can be done. Everyone should have their passports ready because you never know if you will be able to use them.

[Irving]

I can see that everyone else is holding back their true feelings. Too shy to admit it I guess. But I can tell you're all thinking it. It's so obvious. So I'll be the first to come out with it. I am in love with Questiny. haha. I just can't hold it back any longer.

I have a couple of questions - what was your outlet prior to Avalon? Were you running up and down the walls with this stuff in your head? Were you posting on a different forum? Or were you assaulting strangers on the street with your economic, political, and existential philosophy? You are a biological end-of-age knowledge MACHINE woman! haha.

Cheers to you and the wealth of wise viewpoints that you graciously bring to the table. How you have the time to type them I think is puzzling us all.

[orwellsbud]

Judging by events over the last few days, I'm apt to say "so it begins", the domino effect has taken hold; Banks, Airlines, Insurance companies...although the prospects are disturbingly grim, it is going to be very interesting to see how quickly the collapse takes, and if Benjamin Fulford's information concerning 30th Sept holds true.


Peace & Blessings
OB

[ordinaryman]

I have read with interest and admiration your detailed and lucid examination of the current crisis which was most clear. How do you see the knock on effects in other markets and in particular the UK
Kind regards

Ordinary man

[Allan]

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