see http://www.newsday.com/business/nationworld/ats-ap_business12jul07,0,1760756.story
In a speech in San Diego, San Francisco Federal Reserve President Janet Yellen said problems in the ailing housing market and banking system could get even worse before the economy recovers, according to media reports.
Yellen's comments took the wind out of a stock rally that was fueled by a pullback in oil prices. Oil fell at times fell by more than $5 a barrel as the dollar gained strength and as some market worries over the political tension in the Middle East appeared to dissipate.
Originally posted by ScriabinYes, exactly. I read of that speech while huffing down some fries at Thasher's on the boardwalk at Rehoboth Beach. I saw you at the Purple Parrot ...did i not?
see http://www.newsday.com/business/nationworld/ats-ap_business12jul07,0,1760756.story
In a speech in San Diego, San Francisco Federal Reserve President Janet Yellen said problems in the ailing housing market and banking system could get even worse before the economy recovers, according to media reports.
Yellen's comments took the wind out of a stoc ...[text shortened]... and as some market worries over the political tension in the Middle East appeared to dissipate.
GRANNY.
Originally posted by smw6869Okay, c'mon. Tell ya what -- how about we meet at the corner of Rehoboth Ave and 1st in front of the game shop and play using the giant plastic pieces?
Yes, exactly. I read of that speech while huffing down some fries at Thasher's on the boardwalk at Rehoboth Beach. I saw you at the Purple Parrot ...did i not?
GRANNY.
I'm going to be in town as of very late Friday night. Will stay thru sometime Sunday. So sometime Saturday????
I don't go to the Purple Parrot -- prefer Claws, myself.
Now tell me the real skinny on Red Square .. or did you know they don't even have a kitchen? What do you suppose they are there for, no one ever is seen to eat there. How do they get by? What do they really do? Curious minds want to know, but I'd be real careful about going in there and asking if I were you.
BTW -- anyone who doubts what I am saying should be sure to watch the news Friday evening. You will see something reported about a kind of event the like of which has only been exceeded once in US history.
This won't be good news, I'm afraid. A lot of dominoes are about to fall.
But this first one is huge. This is the kind of thing that has not been seen often, and the ripples from this one may bring the whole house of cards down -- or merely outdo the 1930s for a few years.
In any case, what will be announced tomorrow afternoon, after the market closes, will require massive federal bailing out.
I predict that the whole thing will put the economy in the tank for the rest of the campaign season, at least, and push the wars and Iran and national security right off the front pages until the election.
I also think it was precipitated for partisan purposes and it is a calculated risk to have started this stone rolling downhill. I wouldn't have taken that risk, but then they didn't ask me.
Originally posted by ScriabinWell Said. PEAK OIL,, PEAK OIL,, PEAK OIL. The governments of the West have done nothing to address this addiction for the last 40 years. Now we will pay the price.
The people who caused the credit crunch belong to the same club as those who have caused the energy crisis.
We knew more than half a century ago that dependence on Middle East oil, or indeed any foreign oil could do us nothing but harm as a nation, while serving well the interests of the few very rich and powerful industrialists and their stooges in the ...[text shortened]... long past time to banish the rough beasts that slouch in and out of the White House.
Perhaps they should start to listen to T. Bone Pickens and Matt Simmons some more.
Originally posted by ScriabinCorrect this is the worst crisis in History perhaps for the USA. Perhaps teaching a different paradigm to the masses may help.
Keep in mind that President Reagan changed the way the Federal government reports inflation. The Consumer Price Index now excludes energy and food price increases. If you add those back in, which no layman can do and come up with a revised national inflation figure, the rate of inflation in relation to growth in the GDP would present a different picture tha ...[text shortened]... modate the current economic environment and they continue to experience credit quality problems.
!. Not everyone is entitled to a 300k home
2. Not everyone should drive a car
3. Use credit only when necessary
4. Continuous growth is NOT possible if it is Based on OIL a FINITE PRODUCT
Originally posted by ScriabinThanks for the info. Reagan must surely be a strong contender for the worst president the US has ever had. I keep hearing more and more examples of the immense damage that this low-life con artist and thug has done to the country.
Keep in mind that President Reagan changed the way the Federal government reports inflation. The Consumer Price Index now excludes energy and food price increases. If you add those back in, which no layman can do and come up with a revised national inflation figure, the rate of inflation in relation to growth in the GDP would present a different picture tha ...[text shortened]... modate the current economic environment and they continue to experience credit quality problems.
Originally posted by ScriabinThe US government needs to cut military spending dramatically and stop borrowing money to finance it. Private citizens need to also live within their means and not buy things they can't afford, as much as is possible.
I am interested in what people have to say about the recent and ongoing problems, termed a "crisis", in the financial markets related to both credit and real estate.
I am trying to assess the degree of financial literacy reflected in a random sample of views -- nothing scientific going on here.
And I would like to learn what people have read and what ...[text shortened]... and world economy.
Not a debate, as such, but merely want to know what folks have observed.
Originally posted by ScriabinI wish Macswain was still active on these boards; he is the foremost expert I know on Reagan and I believe he would refute some of your statements.
[b]Keep in mind that President Reagan changed the way the Federal government reports inflation. The Consumer Price Index now excludes energy and food price increases. If you add those back in, which no layman can do and come up with a revised national inflation figure, the rate of inflation in relation to growth in the GDP would present a different picture tha ...[text shortened]... S federal banking regulatory officials describe what the situation is, to help focus the discussion:
Originally posted by PinkFloydGosh, golly, gee, to quote one of Dutch Reagan's favorite expressions, that sure was a stinging and right on point response.
I wish Macswain was still active on these boards; he is the foremost expert I know on Reagan and I believe he would refute some of your statements.
I've only mentioned Reagan in conjunction with a change in the way the CPI is calculated. Clinton could have changed it back, but, guess what? he didn't.
So, I'm not going to engage in debates over Reagan. You know why they buried him out there and built a "library" that houses his Air Force 1 jet in the lobby as sculpture (library in quotes as they aren't giving out any documents that might tarnish old Dutch's memory or implicate any more still living folks in felonies where the statute of limitations has yet to run out) -- so why did they bury him there like that and give his name to Washington's National Airport and a huge building in the Federal Triangle (right across from my office, too)?
Because he was dead, that's why. Oh, and also because his party was in the majority in Congress from 1994 to 2004 and could spend tax money any way they pleased, and so they turned Dutch into a certifiable American saint. Big deal -- the Dems do the same thing given half a chance - so it goes. Just politics ...
So let him rest already. Let's just say he's done all he can and leave the rest to history.
I said we had troubles when I started this thread -- did no one pick up on this little tidbit?
Government shuts down mortgage lender IndyMac
By ALEX VEIGA, AP Business Writer
3 HOURS AGO
LOS ANGELES - IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.
The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.
The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corporation because it did not think the lender could meet its depositors' demands.
IndyMac customers with funds in the bank were limited to taking out money via automated teller machines over the weekend, debit card transactions or checks, regulators said.
Other bank services, such as online banking and phone banking were scheduled to be made available on Monday.
"This institution failed today due to a liquidity crisis," OTS Director John Reich said.
The lender's failure came the same day that financial markets plunged when investors tried to gauge whether the government would have to save mortgage giants Fannie Mae and Freddie Mac.
Shares of Fannie and Freddie dropped to 17-year lows before the stocks recovered somewhat. Wall Street is growing more convinced that the government will have to bail out the country's biggest mortgage financiers, whose failure could deal a tremendous blow to the already staggering economy.
The FDIC estimated that its takeover of IndyMac would cost between $4 billion and $8 billion.
IndyMac's collapse is second only to that of Continental Illinois National Bank, which had nearly $40 billion in assets when it failed in 1984, according to the FDIC.
News of the takeover distressed Alan Sands, who showed up at the company's headquarters in Pasadena, Calif., to find out when he could withdraw his funds.
"Hopefully the FDIC insurance will take care of it," said Sands, of El Monte, Calif. "I'm also kind of kicking myself for not taking care of this sooner, sooner as in the last couple of days."
A couple of dozen customers could be seen outside the building, reading fliers handed out by FDIC staff. The agency set up a toll-free number for bank customers to call.
IndyMac Bancorp Inc., the holding company for IndyMac Bank, has been struggling to raise capital as the housing slump deepens.
IndyMac had $32.01 billion in assets as of March 31.
A spokesman for the lender referred media queries to the FDIC.
The banking regulator said it closed IndyMac after customers began a run on the lender following the June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse.
In the 11 days that followed the letter's release, depositors took out more than $1.3 billion, regulators said.
In a statement Friday, Schumer said IndyMac's failure was due to long-standing practices by the bank, not recent events.
"If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today," Schumer said. "Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs."
The FDIC planned to reopen the bank on Monday as IndyMac Federal Bank, FSB.
Deposits are insured up to $100,000 per depositor.
As of March 31, IndyMac had total deposits of $19.06 billion.
Some 10,000 depositors had funds in excess of the insured limit, for a total of $1 billion in potentially uninsured funds, the FDIC said.
Customers with uninsured deposits could begin making appointments to file a claim with the FDIC on Monday. The agency said it would pay unsecured depositors an advance dividend equal to half of the uninsured amount.
During a conference call with reporters, FDIC Chairman Sheila C. Bair said the agency would cover all insured deposits and then try to recover its costs by selling IndyMac's assets.
"We anticipate trying to market the institution as a whole bank," Bair said. "How much money we derive from that will depend on who gets paid what."
Holders of unsecured IndyMac debt may not fully recover their investment, Bair said.
"Generally if a creditor is secured, they are at the top of the claims priority," she said. "If they are unsecured, they're pretty low on the claims priority and probably will take some type of haircut with this, but we have not had a chance to do a thorough analysis to know ... how extensive those losses will be."
IndyMac spent the last two weeks trying to reassure customers that it was not near default.
On Monday, IndyMac announced it had stopped accepting new loan submissions and planned to slash 3,800 jobs, or more than half of its work force _ the largest employee cuts in company history.
In the letter to shareholders, IndyMac Chairman and Chief Executive Michael W. Perry said the drastic measures were made in conjunction with banking regulators to improve the company's financial footing and "meet our mutual goal of keeping Indymac safe and sound through this crisis period."
The plan was supposed to generate roughly $5 billion to $10 billion per year of new loans backed by government-sponsored mortgage companies, Perry said at the time.
But the run on its deposits ultimately short-circuited the strategy, prompting regulators to take action Friday.
Originally posted by ScriabinClinton had to pick his battles. He managed to undo a great deal of the Reagan (mostly) and Bush damage by reducing military spending and thus reducing the national debt as a function of GDP. One more term and Clinton would've been reducing the absolute value of the national debt. Here's the graph again:
Gosh, golly, gee, to quote one of Dutch Reagan's favorite expressions, that sure was a stinging and right on point response.
I've only mentioned Reagan in conjunction with a change in the way the CPI is calculated. Clinton could have changed it back, but, guess what? he didn't.
So, I'm not going to engage in debates over Reagan. You know why they buri ...[text shortened]... him rest already. Let's just say he's done all he can and leave the rest to history.
http://zfacts.com/p/318.html
And it shall come to pass that on this day the FDIC will enter unto the gates of a National Bank and shutter its doors, yea, to open on Monday under the will and power of the mighty FDIC.
And it shall come to pass on the first day of business after this day that the many who have changed money in the Temple located in the Street of the Wall shall gnash their teeth, rend their garments, but the wise among them will rend not but instead vend all their holdings short.
FDIC takes over two more failed banks
28 branches scheduled to reopen Monday as Mutual of Omaha Bank
The Associated Press
updated 11:51 a.m. ET, Sat., July. 26, 2008
CARSON CITY, Nev. - U.S. regulators took over two banks on Friday and sold them to Mutual of Omaha Bank, the sixth and seventh bank failures this year as financial institutions struggle with a housing bust and credit crunch.
Two weeks after the Federal Deposit Insurance Corp seized IndyMac Bancorp Inc., the Office of the Comptroller of the Currency said it closed First National Bank of Nevada and First Heritage Bank NA of California.
First National, characterized as undercapitalized, had total assets of $3.4 billion and $3 billion in deposits. First Heritage, described as critically undercapitalized, had assets of $254 million and $233 million in deposits, regulators said.
Bill Uffelman of the Nevada Bankers Association said Friday the FDIC action “is a reflection of the times for the banks. It’s a poor economy.”
Uffelman cautioned against the sort of consumer concern that prompted many customers of IndyMac Bank branches to wait for hours in line to withdraw funds across Southern California last week after that bank was seized by federal regulators. All FDIC-insured bank deposits are guaranteed by the FDIC up to $100,000, he noted.
Nevada Gov. Jim Gibbons said the bank takeover will be closely monitored in Nevada “to ensure there’s minimal disruption to business and that employees’ jobs are protected as much as possible.”
The FDIC said the cost of the transactions to its insurance fund is estimated to be $862 million, adding that the two failed banks represent just 0.3 percent of $13.4 trillion in total industry assets at about 8,500 FDIC-insured institutions.
The FDIC said the 28 offices of the two banks will reopen on Monday as Mutual of Omaha Bank. Over the weekend, customers can access their money by writing checks, using automatic teller machines or debit cards.
Mutual of Omaha Bank currently has more than $750 million in assets and operates 14 retail branches in Nebraska and Colorado with commercial lending offices in Dallas and Des Moines, Iowa, the FDIC said.
It is a subsidiary of Mutual of Omaha, a 99-year-old insurance and financial services company with more than $19 billion in total assets.
Warnings of more failures
Top banking regulators have warned of additional insolvencies this year and next, but for now do not expect failures the size of IndyMac, which had $32 billion in assets and $19 billion in total deposits at the end of March.
IndyMac, the third largest U.S. bank failure, was regulated by the Office of Thrift Supervision and is expected to deplete the FDIC's insurance fund by between $4 billion and $8 billion.
IndyMac is being run by the FDIC while the agency looks to sell its assets.
The FDIC oversees an industry-funded reserve of about $53 billion used to insure up to $100,000 per deposit and $250,000 per individual retirement account at insured banks.
The agency also has a running tally of problem banks that its examiners closely monitor. At the end of the first quarter, 90 institutions were on the list that is expected to be updated next month.
First Heritage of Newport Beach, California, had three branches with customers comprised mostly of corporations, while First National of Reno, Nevada, had 25 branches. Both were owned by First National Bank Holding Co of Scottsdale, Arizona.
In addition to assuming all the deposits, Mutual of Omaha Bank will purchase about $200 million of assets and pay the FDIC a 4.41 premium to assume the deposits.
None of the entities are publicly traded.