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…
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.
Into the blue again, after the money’s gone… same as it ever was…
Not that Wikipedia is the best source – but this is convenient: http://en.wikipedia.org/wiki/Keating_Five
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!!!???
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!
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.
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!!!!
Does anyone remember the S&L crisis in the late 80s???? Is this the same thing happening all over again?
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.
” 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…