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July 15, 2008
IndyMac Fallout in Brooklyn?
Here's a spooky anecdote from Daily Gotham: "Today, my brother saw a crowd at the Duarte [California] IndyMac Bank desperately trying to get their savings out. Many elderly people were claiming that they are being offered dollar for dollar on the first $100,000...after that only fifty cents on the dollar." And here's another one from a recent report from the Center for Responsible Lending:
"I would reject a loan and the insanity would begin," one former underwriter told CRL. "It would go to upper management and the next thing you know it's going to closing... I'm like, 'What the Sam Hill? There's nothing in there to support this loan.'"
Even if, knock on wood, runs on banks aren't in our near future, is IndyMac's failure likely to affect Brooklynites directly or indirectly? Or will it indeed be business as usual after the FDIC bailout?
It Begins: My Brother Witnessed a Run on a Bank [Daily Gotham]
Photo by Alec81.
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Comments
Ah the post returns.. We need a investigation...
"Even if, knock on wood, runs on banks aren't in our near future, is IndyMac's failure likely to affect Brooklynites who had loans with the bank?"
If I had no arms will I be able to beat-off?
We are in the final phase of the Mutant Real Estate/Asset Bubble! You are witnessing the destruction of our wealth. Very soon there will be hundreds of bank failures and there is nothing that can stop it. I hope some of you remember I post about this topic last year and I was laugh at for spreading rumors. The Banking system is broken and it will take great pain to fix it. Some of you don't realize you have lost 10% on the value of your house this week. There are people in contract that can't get a mortgage or the value of the appraisal has been cut. I say this will don't get out of August with out some sort of melt down and the hard shock waves to hit in September/October.
For those Asshats that think Wall Street will save us, please take a look at this..
Dow Jones industrial average for the year
http://finance.yahoo.com/q/bc?s=%5EDJI&t=1y
52 Week Range 14,280 one year ago! 10,917 Now!
One more thing. The stick save of Fannie Mae and Freddie Mac the market no likey! The equity holders will get assraped.
The What (Real Estate always goes up, LMMFAO!)
Someday this war is gonna end...
Posted by: what at July 15, 2008 10:17 AM
Calling All Asshats, Calling All Asshats! This what a "Bank Run" looks like..
http://tinyurl.com/676enq
IndyMac seized by federal regulators
"Customers queue outside of an IndyMac Bank branch in Santa Monica, California on July 14. US financial markets are on tenterhooks as the banking sector faced a crisis of confidence even after an unprecedented government rescue of mortgage giants."
Yep unprecedented.. This is going to end very very bad...
The What
Someday this war is gonna end...
Posted by: what at July 15, 2008 10:25 AM
Yes, this is a fact. Why is a blog post/anecdote being referenced as a source when it's been all over the papers?
Posted by: abcdz at July 15, 2008 10:38 AM
I see the post is back minus my earlier comment so I'll say it again. IndyMac has no branches outside of California. Why would you post that alarmist picture suggesting it will effect Brooklyn? There are so many financial stories more directly relevant to the Brooklyn market than this. Why not mention something related to Fannie Mae instead for God's sake? This is the third time that Gabby has posted something that is simply ridiculous. She completely mangled the Corcoran statistics a few weeks back, she once posted something from a newspaper that was touting a new real estate search engnine that was obviously just a cheap advertisement, and now this. I'm afraid I think she really brings down the quality of this site.
Posted by: Brooklynnative at July 15, 2008 10:38 AM
Probably correct Brooklynnative but look on the bright side...it has rattled the What's cage and brought back his ranting. God we missed it so!
Posted by: daveinbedstuy at July 15, 2008 10:44 AM
Only .50 on the dollar after 100k? Duh. Doesn't anyone read those FDIC insurance stickers all over banks?
Posted by: nosleeptil at July 15, 2008 10:45 AM
Hey, don't keep more than $100,000 in one account, btw. There is no reason to. (And it is likely that even the people who did that will be getting more than 50 cents on the dollar on the money that exceeds the insurance limit, just not today.)
I agree that although this is news, there are many more pertinent economic stories closer to home. This just is so dramatic as it reminds people of the Depression.
Posted by: Carol Gardens at July 15, 2008 10:46 AM
Brownstoner, what's up with censoring Brooklynnative's earlier comment?? Though critical, it was hardly out of line, and in fact was attempting to be constructive.
Posted by: bklynrosie at July 15, 2008 10:52 AM
Why assume he censored it? I tied posting and there was an error message page so for all you know, it was a techie error. Not unknown on the blog.
Posted by: also guest at July 15, 2008 10:58 AM
Sorry about that. We pulled the post for a few minutes to fix it and it got deleted--along with the two initial comments--by mistake. As you can see, we've left the critical comments in there now.
Posted by: brownstoner at July 15, 2008 10:59 AM
" see the post is back minus my earlier comment so I'll say it again. IndyMac has no branches outside of California."
This the first in many shock waves in our financial system! Guess what?! It's not going get better.
"Why would you post that alarmist picture suggesting it will effect Brooklyn?"
Because it will, Dumbass!
"Probably correct Brooklynnative but look on the bright side...it has rattled the What's cage and brought back his ranting. God we missed it so!"
Nov 07= Ranting. July 08= Facts!
"Hey, don't keep more than $100,000 in one account, btw. There is no reason to. (And it is likely that even the people who did that will be getting more than 50 cents on the dollar on the money that exceeds the insurance limit, just not today.)"
The FDIC only has 50 Billion in it. I think after the WAMU and Wachovia implosions the fund will be depleted. The US Treasury will have to step in. FYI the FDIC can take up to 99 years to return your money, no BS.
"I agree that although this is news, there are many more pertinent economic stories closer to home. This just is so dramatic as it reminds people of the Depression."
This is the DEPRESSION 2, Dumbass!!!!!!!!!!!!! This is unfolding in realtime and this will be someone Doctoral Dissertation.
The What
Someday this war is gonna end...
Posted by: what at July 15, 2008 11:00 AM
Wamu and Wachovia are next! There are plenty of those branches in Brooklyn. If you have more than 100k(250K in IRA) in either of these banks watch out.
Posted by: la di da di at July 15, 2008 11:20 AM
Does anyone remember the S&L crisis in the late 80s???? Is this the same thing happening all over again?
Posted by: BrooklynButler at July 15, 2008 11:37 AM
I can't figure this system out, there's blood in the waters but no sharks. There's no one buying nothing right now. I finally see prices that regular working folks can afford, but there are no loans. Dam!!! and how good things were just a few years ago. Go figure!!!!
Posted by: Wick_or_Stuy at July 15, 2008 12:06 PM
This is worse than the S&L crisis.
The banking system could be and in fact was saved by ultimately issuing more debt.
You have to understand how fractional reserve banking works. Existing debt requires in interest more money than is in circulation at the time the debt is issued. The only way existing debt can be financed is through the creation of new debt instruments.
We are at a point where the national debt load is too great, and extensive new debt cannot be easily created.
It is in this context the sub-prime mortgage nonsense has to be understood. The poor and people without credit were the only ones left that could take out loans on a vast scale.
Now, there really is no one left that can take on more debt. How the government grows the money supply at this point is unknown. But the transition will not be smooth.
Posted by: Polemicist at July 15, 2008 12:11 PM
But on the plus side, one of the architects of the S&L crisis and charter member of the Keating Five, John McCain, might be our next president. Surely he'll find a way out of this mess!
Posted by: greenwood at July 15, 2008 12:23 PM
WOW greenwood...very good...not many people remember the Keating Five. I think only Cranston actually got charged with anything but McCain was in the thick of it. Maybe he brings some insight to the table here!!!???
Posted by: daveinbedstuy at July 15, 2008 12:26 PM
Not that Wikipedia is the best source - but this is convenient: http://en.wikipedia.org/wiki/Keating_Five
Posted by: cobblehiller at July 15, 2008 12:29 PM
Into the blue again, after the money's gone... same as it ever was...
Posted by: SnarkSlope at July 15, 2008 12:53 PM
I knew Chuck Keating when he was on trial in Chicago...kept two adjoining suites at the Fairmont Hotel (one for him, and one for his...ahem..."secretary". In between court dates he was filling his days protesting against pornography and/or abortion, and figuring out ways to get his lawyer to pay for dinner that included a '75 La Mission Haut Brion.
All this while pleading poverty to the judge.
Lovely, lovely man.
Posted by: kuroko at July 15, 2008 1:30 PM
You know something, no one attacks me any more.. Wow that is something. Never-mind Brownstoner has killed this Blog with Log-On non sense. The Asshats are starting to see the Mutant Asset Bubble with their own eyes.
The What
Someday this war is gonna end...
Posted by: what at July 15, 2008 1:31 PM
there, there, dear. it must be hard to switch from fending off the asshats everyday to feeling some love! ok, maybe not love exactly...just less crap!
Posted by: cobblehiller at July 15, 2008 1:35 PM
In To Tame Angry IndyMac Customers
http://cbs2.com/business/IndyMac.Finance.Pasadena.2.770438.html
Police Tuesday were called in to tame an angry throng of IndyMac Bank customers trying to pull money out of the Encino branch on the second day of a federal bank takeover.
At least three police squad cars showed up early Tuesday as tensions got heated outside the San Fernando Valley branch of Pasadena-based IndyMac.
Federal regulators seized Pasadena-based IndyMac on Friday and they opened Monday under the control of the Federal Deposit Insurance Corporation.
Watch the video! They are going Buck Wild, son! This is coming to a WAMU branch near you. Oh man this is great!!
The What (Real Estate only goes up, ROTMMFLMMFAO!)
Someday this bank is gonna end..
Posted by: what at July 15, 2008 1:45 PM
BTW, the FDIC guarantee of up to $100,000 is per bank. I hope that every WAMU holder knows this.
The S&L scandal of the 80's...You're bringing me back to my precocious youth. You know, "W" wasn't supposed to be "the one." It was Neil who was supposed to become the second Bush president. He got tangled up with Silverado S&L and quite frankly, we just don't hear about him anymore.
The implication of the Indy Mac failure for Brooklyn is that there will be a whole new world in mortgage finance that even those of us with good credit, steady jobs, and an adequate coverage ratio will have a harder time getting mortgages.
Hey, What.....We missed you.
Posted by: BrooklynIsHome at July 15, 2008 2:31 PM
Gabby - stop trying to be Chuck Schumer.
Fake what sighting.
Posted by: BrooklynLove at July 15, 2008 2:36 PM
"Hey, What.....We missed you."
I been here documenting the apocalypse, LMAO!
"Fake what sighting."
Ah some Asshat attacks, that feels good. Hey BrooklynLovesmensass, are your watching the meltdown fucktard! Do you see your equity going down the drain? Hold on to that Condo, it will will be worth 20% next year. LMMFAO, Stupid!
The What
Someday this war is gonna end...
Posted by: what at July 15, 2008 3:18 PM
"Watch the video! They are going Buck Wild, son! This is coming to a WAMU branch near you. Oh man this is great!!"
Yeah a bunch of old ladies and men, sitting on their lawn chairs with sun umbrellas going "buck wild"??!! BS - just more BS from what, but then what do you expect? He must lead a very boring life.
Posted by: Brooklynnative at July 15, 2008 3:27 PM
Wait a minute Brooklynnative! First you was running with the Asshats then you shifted your position trying to be like me and now I get this. It was a mad house at Indymac just Google the news stories you wanna be Assfuck! No it's me on this I don't need band wagon jumper, FUCKTARD!!!
The What
Someday this war is gonna end...
Posted by: what at July 15, 2008 3:50 PM
No What, I ride alone. First of all, I call BS when I see it and your post was BS. That video was boring as hell.
Second, I've always maintained a much more nuanced position than you. Guess you failed to pick up on that, huh? Wonder why? If you care to take the time, go through my old posts - I've always maintained real estate is way overvalued and that the dollar will fall. I expect there to be hundreds of bank failures but that doesn't mean I'll get all hysterical when I see a bunch of old farts sitting around on lawn chairs. Maybe it lifts your skirt. I'm outta here.
Posted by: Brooklynnative at July 15, 2008 4:03 PM
Hey, so all those bank storefronts all over New York will magically transform back into independent bookstores, cheese shops, organic spas, Tibetan craft stores, etc -- right?
One thing, and again, I don't know, this is just my assumption: one reason banks started loosening credit standards I would think is because interest rates stayed so low for so long that was the best way to make a little more profit off debt -- because they could charge a few points higher, sell off tranches of risk, etc.
Also, now that talking heads song is running through my head.
Posted by: Heather at July 15, 2008 4:03 PM
No, actually Heather, banks loosened the credit standards when they started turning the loans into bonds (securitization) and sold it off to suckers all around the world. Once the borrowers were no longer paying them back, the banks didn't give a hoot whether the loan would be repaid because they got their profit through selling the loans off.
Posted by: Brooklynnative at July 15, 2008 4:06 PM
"No What, I ride alone. First of all, I call BS when I see it and your post was BS. That video was boring as hell."
You made the comment (paraphrasing) "You didn't I was the What" Do you remember that comment!!!! Do you remember your was Dick Riding Me Brooklynnative!
Do you remember the "Dance a jig for me, What" Huh Asshat!
You just changed your position a couple of month ago, Brooklynnative! I can't stand Hypocrites.. At lease take a position (Bad one, doesn't matter) and stick to it. Don't be a Bandwagon jumper now.
Now I have more resect for the Asshats on this board! Why?! Because they are sticking to their guns, right or wrong.
The What
Someday this war is gonna end...
Posted by: what at July 15, 2008 4:29 PM
Yeah, and I also criticized Gabby for her Corcoran being stupidly optimistic and her post today for being ridiculously alarmist. Does that make me inconsistent? No, she misread the Corcoran stats and then she posts something about a bank which has no branches in Brooklyn.
I don't even understand why what you quote me as having said in the past supports your argument that I've changed positions. I call BS when I see it and I give people their props when they deserve it. That is why I was the first person on this board to defend you for actually being pretty funny sometimes. I was the one who first said that the expressions "asshat" and "fucktard" are hillarious. But when you link to a video that literally shows a bunch of old farts in their lawn chairs and describe it as them "going Buck wild" I say BS and I stand by it. Admit it, your video was lame.
Posted by: Brooklynnative at July 15, 2008 5:17 PM
Brooklynnative that's was not the video. When I made my post the Police was trying to calm down people, who camped out all night. They was screaming and shouting to get in, plus it''s very hot there! I not into hype Brooklynnative. I post thing thats relevant to the MREB! I will tell you again that was not the video posted earlier!! They want to calm down people now so they wont make more "Bank Runs"!!!
The What
Someday this war is gonna end...
Posted by: what at July 15, 2008 5:41 PM
fake what - seriously. you're about as believable as roger clemens.
Posted by: BrooklynLove at July 15, 2008 6:17 PM
"I will tell you again that was not the video postedearlier!!" OK, so you admit that the video you posted to and that I saw was lame. Maybe they changed it, I don't know. But, what do you mean tell me again?? When did you say that before the 5:41 post?
Posted by: Brooklynnative at July 15, 2008 8:31 PM
chum the waters like that and The What is guaranteed to post in under an hour...even without provocation.
Posted by: Snowman at July 15, 2008 8:37 PM
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