"Too big to fail" get bigger. FDIC Broke and many more banks expected to fail

[JMJ]

Making the banks bigger doesn't solve the problem

Banks 'Too Big to Fail' Have Grown Even Bigger
Behemoths Born of the Bailout Reduce Consumer Choice, Tempt Corporate Moral Hazard

http://www.washingtonpost.com/wp-dyn...082704193.html


Government run insurance program broke


Taxpayer Trading Strategy: Short FDIC Long TARP
http://www.cbsnews.com/blogs/2009/08...y5271510.shtml

The FDIC is broke
http://www.wnd.com/index.php?fa=PAGE.view&pageId=107732

FDIC rule change could lead to more failed banks, Bove says
The regulator has reduced the cash that private-equity funds must maintain in banks they acquire

http://www.investmentnews.com/apps/p.../REG/908279984

1,000 Banks to Fail In Next Two Years: Bank CEO

http://www.cnbc.com/id/32581463

Federal Reserve and big banks threatening collapse once again

"Fed Must Release Reports on Emergency Bank Loans, Judge Says"
http://www.bloomberg.com/apps/news?p...d=av_bCYnKeIUk

Bailed Out Banks Threaten Systemic Collapse If Fed Discloses Information

http://www.zerohedge.com/article/rac...es-information

[south]

And the "funny" thing is they raised the FDIC coverage form 100k to 250k. DUH! More tax dollars down the tubes. F'ing idiots.

[JMJ]

And the "funny" thing is they raised the FDIC coverage form 100k to 250k. DUH! More tax dollars down the tubes. F'ing idiots.

As far as that's concerned I think people's money should be 100% covered. What happens after all of these mammoth banks gobble up all the small guys and they are the only places left to keep your money. One of those goes under and everyone with funds above that are screwed. People's money shouldn't be caught up in the middle of bad banking practices.

[Banned: theinvestor]

who puts more than 250K in the bank anyway?

that's why we buy expensive domains

[JMJ]

who puts more than 250K in the bank anyway?

that's why we buy expensive domains

I'm sure there are many even small businesses who have to keep in excess of that in the bank.

[Banned: theinvestor]

I'm not sure if you know this....but people spread their wealth amongst assets/stocks/commodities and a lot of the other available cash can be spread into multiple bank accounts.

But if you wanna talk about businesses their wealth is not in cash....the cash they have is miniscule.

[JMJ]

I'm not sure if you know this....but people spread their wealth amongst assets/stocks/commodities and a lot of the other available cash can be spread into multiple bank accounts.

But if you wanna talk about businesses their wealth is not in cash....the cash they have is miniscule.

I have a financial background so yes I'm quite familiar with the financial practices of both the banks/lenders and the individuals/businesses.

[cleverlyslick]

stuff that cash under the mattress

[south]

As far as that's concerned I think people's money should be 100% covered.

By whom?

The full faith & credit of Uncle Sam? That means you & I. The taxpayers. Sorry, I don't want my taxes to cover trillions upon trillions of losses because a bank mismanaged / gave away / wasted / partied away the billions already stolen from us in the bailouts, from the depositors, the people who worked all their lives to retire on those bank savings / etc. Nope. *I* don't get xxx,xxx,xxx bonuses / salary every year. Congratulations to the private investors & individuals that obtain financial success through moral & ethical hard work & innovation (capitalism at it's finest), but by the same token, those that succeed must also be allowed to fail. Privately. Without stealing my money when they F it all up.

[JMJ]

By whom?

The full faith & credit of Uncle Sam? That means you & I. The taxpayers. Sorry, I don't want my taxes to cover trillions upon trillions of losses because a bank mismanaged / gave away / wasted / partied away the billions already stolen from us in the bailouts, from the depositors, the people who worked all their lives to retire on those bank savings / etc. Nope. *I* don't get xxx,xxx,xxx bonuses / salary every year. Congratulations to the private investors & individuals that obtain financial success through moral & ethical hard work & innovation (capitalism at it's finest), but by the same token, those that succeed must also be allowed to fail. Privately. Without stealing my money when they F it all up.

Banks don't lend depositors money. Deposits are used as reserves. Loans are made on multiples of those reserves. Simply put the loans are money (or credits) created out of thin air. Some of these financial powerhouses such as Goldman (who have become investment banks) are leveraged out 50:1 100:1 and one case I saw 250:1. As in they have loaned out 250xassets/reserves.

You seem to think I disagree with you on allowing these banks to fail. Which wouldn't be the case. I think they should have all been allowed to fail but the peoples deposits covered. What you have here is another fine example of the government not protecting the people they serve but rather protecting big business. Another fine example of a government run program, an insurance program no less, broke. And finally another great example of how they need to fix the current problems/programs rather than adding more. If our nations money is/was handled properly it wouldn't be or have been a problem.

[GeoOwners]

Posted via Mobile Device

buy land...they can't print that
Posted via Mobile Device

[JMJ]

U.S. banks face a tsunami of home foreclosures soon, says David Karsbol, chief economist at Saxo Bank.


Homeowners may be faced with no choice and will just stop paying their mortgages, he warns.


“I believe we are about to see a tsunami of foreclosures in the U.S. A lot of homes have been held back because if the banks are foreclosing on them they will have to do a writedown on the mortgages they have on their balance (sheets),” Karsbol told CNBC.

“That’s why they have been reluctant to do so.”


Soon homeowners may be looking around their neighborhoods and realizing that their neighbors have opted to stop paying their mortgages and are living scot free, he said.
“The fact that many homeowners are allowed to stay in their houses without paying on their mortgages begs the question: Why should you pay on your mortgage when your neighbor doesn’t?” Karsbol said.


Rising unemployment in the United States is the main cause behind foreclosures, economists and bankers told the Washington Post. Subprime mortgages are becoming less of a culprit.

"It's a much harder nut to crack, unemployment," says Mark A. Calabria, director of financial regulation studies at the Cato Institute.

"It's much easier to bash lenders than to create jobs."

In 2009, the first three months reported the largest share of foreclosures moved to prime loans from subprime loans, according to the Mortgage Bankers Association.

“Rising unemployment, for the sake of this downturn, has magnified things considerably,” notes John Snyder, manager of foreclosure programs for NeighborWorks, a large housing counseling group.

“It's less about the payment adjustment.”

http://moneynews.newsmax.com/streett...28/253604.html

[Donald Aquilano]

On top of everything else you have the commercial real estate crisis that is looming.....

http://news.google.com/news/url?sa=t...Fs_640671.html