National Bankruptcy

[Lorn]

Re: National Bankruptcy

To anyone that's been listening to me for the last 36 years, when I said I'd like to experience everything once, I forgot to exclude "a depression." My bad.

lol.

I truly hope you don't my friend.

[Miroslav]

Re: National Bankruptcy

http://www.securagroup.com/news/arch...8/AB080827.pdf



Interesting little read on the FDIC and banking industry by a former chairman of the FDIC.

which is why if a few more institutions fail in a row, the FDIC would be out of money to insure the accounts that they would vs. what's available in their annual budget...so they go to the Treasury for more!

I'm waiting to see G.D.-style of thousands lining up at banks to try and get their money out (was a pretty good sight when IndyMac failed)

You are both correct. And you may not have to wait that long to see people lining up at banks.

Top Economist: Americans Should Worry About Bank Deposits if Congress Doesn't Act

http://finance.yahoo.com/tech-ticker/article/56994/Top-Economist-Americans-Should-Worry-About-Bank-Deposits-if-Congress-Doesn%27t-Act?tickers=LEH,MER,BAC,AIG,WM,%5EDJI,%5EGSPC

But Americans are justified to be worried, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a "slow-motion run on retail banks" occurring nationwide.

That "run" could accelerate as people realize the FDIC fund has about $50 billion to "insure" about $1 trillion in assets at the nation's financial institutions, says Roubini. "They're going to run out of money" unless Congress acts soon to recapitalize the FDIC.

This guy is significant because he's been one of the few to accurately predict the severity of this mess. He always sounded really pessimistic and people were basically laughing at him...they're not laughing now. It's really getting ugly out there.

I will no longer keep all of my non-invested savings in one bank.

[FM]

Re: National Bankruptcy

^^^read that earlier. Crazy shit.

While AIG is crying to get some money, Washington Mutual is rumored heavily to be the actual next failing...being downgraded to junk status today only fuels that more. It's stock closed at $2, then went down another $.20 in afterhours trading.

If so, FDIC just burned through the rest of its current funding for the year...and then some.

http://www.nakedcapitalism.com/2008/09/wamu-failure-could-trigger-extension-of.html

[tiddles]

Re: National Bankruptcy

this stuff scares me. think i'm going to stay in europe a little longer

[Lorn]

Re: National Bankruptcy

Don't think europe will escape this mess.

[Kinetic]

Re: National Bankruptcy

Don't think europe will escape this mess.

Yep, we´ve been suffering since the sub-prime and credit crunch crisis started, so it´s only normal that we´re gonna get another tidal wave soon... I work for the local branch of an American multinational which was actually one of the 3 most profitable companies in the world in 2007, and we´ve already suffered massive layoffs in the 1st half of the year... I´m seriously thinking of bailing out...

[tiddles]

Re: National Bankruptcy

Don't think europe will escape this mess.

but the women are thinner and great public transport means i don't need to pay for gas ever

[Lorn]

Re: National Bankruptcy

but the women are thinner and great public transport means i don't need to pay for gas ever

haha...good point!

[runningman]

Re: National Bankruptcy

Well Lehman is gone.. Merril Lynch is gone and now it sounds like AIG is next. Insurance companies now being hit. The ripple effect is in full swing now.

[tiddles]

Re: National Bankruptcy

but the fundamentals of our economy are strong!

[toasty]

Re: National Bankruptcy

You'd think I'd be able to find a quick answer to this, but I'm missing it -- what does BOA intend to do with ML? Will it be rolled into BOA, or is it going to remain as a wholly owned subsidiary under the ML name? Or something else?

Anyone know?

[Lorn]

Re: National Bankruptcy

http://en.wikipedia.org/wiki/Cronyism

[Jenks]

Re: National Bankruptcy

“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.”

^Thomas Jefferson. 200 years ago.

[Miroslav]

Re: National Bankruptcy

You'd think I'd be able to find a quick answer to this, but I'm missing it -- what does BOA intend to do with ML? Will it be rolled into BOA, or is it going to remain as a wholly owned subsidiary under the ML name? Or something else?

Anyone know?

They won't give you much detail on that. I don't see why they wouldn't just roll it into BOA. Reportedly, there is not that much overlap between the two institutions, so synergies to be realized should be heavily revenue and market-based as BOA dramatically expands its portfolio offerings and cross-sells to customers. Where they do have overlap, they'll just fire the redundant people and halk those cost savings up to the synergy benefits as well.

[runningman]

Re: National Bankruptcy

Your exactly right Jenks.

Toasty I think BOA is taking out Merril Lynch because they can . Bankers are always looking to get rid of competition to pave the way for the future with a financial monopoly

But who really knows why they do what they do.

i found this in an article... what a croc of shit

"AIG's bailout brings to about $900 billion the total of U.S. rescue efforts to stabilize the financial system and housing market. Authorities may get much of that money back -- if asset prices don't slide further. "

That is a pretty big "IF" in that sentence. $900 Billion so far and nothing saying it is over yet!! Ouch