elgraccho writes:
sooner or later, someone will decide that treasuries are not risk free
elgraccho | 09.15.08 - 4:57 pm | #
And that, my friend, will be the time to pray. Pray, pray...pray like Sarah Palin on crack. Like Carrie White's mom after the prom. Like there's no tomorrow, for there shall be none in the event horizon you have described: financial armageddon.
Yahoo leading off with "Bank Deposits in Danger?" Link goes to a Roubinni interview. I'm thinking about pulling the other half of my savings out of the bank this afternoon. If I wait for an actual run, it may be too late.
Yahoo leading off with "Bank Deposits in Danger?" Link goes to a Roubinni interview. I'm thinking about pulling the other half of my savings out of the bank this afternoon. If I wait for an actual run, it may be too late.
That lead is irresponsible, they make it seem like if you have a checking account you are in danger of loosing your money.
My roomate actually is an editor for the front page of Yahoo I am firing off an e-mail to her and ask why they decided to run such an inflammatory headline.
Iowa Lt. Gov. Patty Judge (D) at a public steak fry:
Sarah knows how to field-dress a moose. I know how to castrate a calf. Neither of those things has anything at all to do with this election. But since we know so much about Sarahs special skills, I wanted to make sure you knew about mine too.
We should send Patty Judge to Wall Street on a mission.
rationaljeff
CNBC is doing a special tonight called "How Safe is Your Money?"
You know how the networks cover hurricanes, massive snow and ice storms????
The MSM just got their latest "hurricane" and they are going to milk this for all it's worth.
"That lead is irresponsible, they make it seem like if you have a checking account you are in danger of loosing your money."
Nah you'll get it, it is just a question of what kind of purchasing power it will have when the just flat out start the printing presses which may be a year or two away.
I was just going to suggest that conjure join Patty Judge in a field trip to Washington, but mp beat me to it.
Question from a lower down thread:
Anybody see any long lines and run type evidence at WaMu branches? One person said they saw lines at one branch. A client sez she has 120k at WaMu. I said move 20k out. Now, I rather think she should move the whole thing. Will tell her than tomorrow.
At WAMU today. NO LINES. Another dump monkey rumor. If there ever really is a run on WAMU, I expect it will be discovered - and adequately documented - here as fast as anywhere.
The Feds will not default on WAMU obligations. Ever. If necessary, the Federal Reserve will make a loan to the FDIC while Congress is called into emergency session. To default on WAMU would be the end, and it will not happen.
"The FED defaulting on insured deposits at WaMu? Really?"
No way, no how. If there's anything that would make this country go full bore socialist, that would be it. So it'll never happen. Because socialism is The Devil.
HP just announced a 24,000 jobs cut over nxt 3 yrs. Half the job cuts will be in the U.S., Palo Alto, California-based Hewlett-Packard said...
Not good for No Cal.
I imagine there has been a stealth run in the form of deposit withdrawal.
Remember that we are only about 2 weeks from the end of quarter FDIC reporting. If there is a stealth run in progress, and it doesn't bring WM down, then we should see signs of it when the reports get released later in Oct.
I was at Wamu on Friday. I asked the teller if people had started pulling their money out yet. She said no, actually they have been increasing deposits. I don't know if I buy that except maybe the 5% CD is working. And it is just one branch in one town.
I'm not a plant for WAMU or anything like that. I just get really p***** o** when I see people trying to add to the considerable troubles we already face.
I was at a Fred Meyer store today that has a WAMU branch. The tellers looked extremely unhappy and the only customers were an elderly man and woman who appeared to be withdrawing CD's.
Yeah, I tend to ignore the WAMU bank run rumours. There were people last night claiming that 2 out of 3 ATM's were not accepting debit cards transactions last night. Now, if you said the same thing happens tonight, well then....
good tidings from houston!! Ike didn't kill us and our townhome is completely undamaged. However, we are likely to be without electricity for another week. We have running water. Too bad I didn't have tv bc I would have liked to have seen the talking heads on cnbc today.
I wonder how smart you have to be to run venerable institutions into the ground. Those harvard MBA guys are too clever for their own good. NY city real estate is about to nosedive methinks. The worst part of this whole hurricane ike thing is that I miss the eagles vs the cowboys
People should understand the difference between money being covered under insurance and available to you when u need them.
When FDIC goes kaboom, they borrow initially from tresury. If that is not enough then they create payment schedule. So if you aren't lucky then you will get your money back at FDIC's scheduled period without interest.
HP just announced a 24,000 jobs cut over nxt 3 yrs. Half the job cuts will be in the U.S., Palo Alto, California-based Hewlett-Packard said...
Not good for No Cal.
The Feds will not default on WAMU obligations. Ever. If necessary, the Federal Reserve will make a loan to the FDIC while Congress is called into emergency session. To default on WAMU would be the end, and it will not happen.
Fair Economist
That might actually be the pitchfork and scythe moment in modern American history.
Was at wedding Sat. night-Wamu banker there-long time employee-16 years..He stated that the 5% cd increased capital this month....Still seems to be some pollyannas holding out as many in the reception were commercial and re brokers..all felt comfortable..and they came from NY, Seattle, SF, LA and San Diego...
My concern is not actually about money. FDIC doesn't have enough employees to do the shut down or whatever they decide to do. From what I understand they don't have one employee per branch and I understand custom is that they sent employees to the branches to lock the doors, at least temporarily. Perhaps FFDIC can comment?
Obviously, the govt can just print all the money they want. Are they going to just hand a bunch to WaMu preferentially until they can train enough employees?
By the way, we still have a checking account there with a few thou, and a safety deposit box, and I have been nervous about WaMu for quite some time.
Fair Economist is a fair economists. There is enough panic in the air without pushing unfounded rumors on WaMu or that FDIC cannot cover their insurance. Of course I did a one man run on WaMu last week but that was because it seemed going through all of the FDIC red tape would be a pain.
Most of us know that the danger is not that the FDIC will fail to cover, but that after they cover 1000 banks the currency will be inflated. We have a choice -- no dollars or worthless dollars.
Liz,
Correct. I've been saying for two years that FDIC did NOT have staff for this crisis. They are hiring and also have a few contractors who are hiring but it is currently not enough. The tiny Dallas staff is already exhausted and some of those are still working at banks that have already failed. Just because a failed bank reopens under another name the FDIC continues staffing at that failed bank and also in its offices in DC and Dallas. The existing staff due to constant downsizing for a decade or more is already stretched very thin, exahusted and many are now in their late 50s,60s,70s with less stamina and can also up and retire if you work them too hard. It's a zoo Liz!
It should, by now, be perfectly obvious that the investment banking model is broken and can't be put back together again. This means, at least for the immediate future, we return to the more traditional banking model.
In doing so, there are going to be significant disruptions in credit. The "anything goes" credit bullshit has come to an end, not only for businesses, but individuals as well.
The economy is going to get hit with at least a double whammy. Consumer credit, gone. Business leverage to goose earnings, gone.
So, forget about current market valuations on equities--they're bullshit. P/Es are going to come way down.
If ur not takin ur money out of banks ur playing with fire. Fdic is undercapitalized. The reason you don't see traditional runs is because of the internet and atms. Most regular joe's aren't paying attention and don't add up to the majority of deposits. The one's you have to worry about are the large account holders who have millions and who bring those amounts down to the 100,000 threshold.But even at that are you going to wait three months for FDIC if you lose your job or need cash right away.
Are people seriously implying that the government would default on it's FDIC commitment if WaMu fails?
I can not see that happening, even after the last 24 hours.
The FED defaulting on insured deposits at WaMu? Really?
rationaljeff | 09.15.08 - 5:25 pm | #
There would have to be either an emergency appropriation from Congress or yet some other form of Fed window (wall hole) to prop it up. Yes I'm pretty sure they would do it, since if you have just one instance of an insured depositor not getting their cash, then there will be lines out the door of every bank branch in America, regardless of the bank. The only solution at that point would be an FDR type bank holiday...cant have that BEFORE an election. So yes the funds get provided to the FDIC, but tack on an extra $100-200B to the deficit.
Someday there won't be enough free money in the entire world to buy all the outstanding treasuries we have. Then we have problems, issuing debt with no buyers. Anybody see that problem happening in the near future. It seems a bad downturn might dry up the foreign coffers.
First there is a denial, than there is an acceptance;
since most people are about year and a half late with selling, it's time to DUCK & COVER comrades.
3 more to go.
Does LIBOR even get updated anymore?
First?
What a day. And most here saw it coming.
Wow.
sooner or later, someone will decide that treasuries are not risk free
HP out with some good news: 24,000 jobs cut over three years.
How are those workers going to pay back their NINJA Option-Arm 1% teaser loans in MA?
foreclosure---->bank failure--->layoffs---> more foreclosures ---->more layoffs..
root@federalreserve.gov # /sbin/shutdown -h now
Maybe China will start a Marshall Plan for US!
CR - when discussing this issue, the proper units are "innings", not "waves"
Just a doofus here....what's LIBOR stand for?
TIA!
elgraccho writes:
sooner or later, someone will decide that treasuries are not risk free
elgraccho | 09.15.08 - 4:57 pm | #
And that, my friend, will be the time to pray. Pray, pray...pray like Sarah Palin on crack. Like Carrie White's mom after the prom. Like there's no tomorrow, for there shall be none in the event horizon you have described: financial armageddon.
VIX almost 32. Nice calm day in the markets.
London Interbank Offered Rate
LIBOR = London Interbank Offering Rate
Yahoo leading off with "Bank Deposits in Danger?" Link goes to a Roubinni interview. I'm thinking about pulling the other half of my savings out of the bank this afternoon. If I wait for an actual run, it may be too late.
Sebastian, What does the crystal ball Wright Model-B say about the growth is the US economy now ?
google and wikipedia are wonderful, easy to use tools
What a day. And most here saw it coming.
My SDS was down 2% on Friday but there was no way I was going to be shaken out of it.
SKF and SRS did better, but I've decided to stop daytrading and I think SDS is the better long term bet.
ullpointer +1
And that, my friend, will be the time to pray. Pray, pray...pray like Sarah Palin on crack.
SP on crack would pray for a bigger moose.
Not helpful, I fear.
Kneel_before_Zod writes:
root@federalreserve.gov # /sbin/shutdown -h now
or root@federalreserve.gov # rm -rf /
Whats that they say about teaching a man to use wikipedia and him eating forever or something....
.....
Sebastian, What does the crystal ball Wright Model-B say about the growth is the US economy now ?
Bwahahahahahaha
Buy, Buy, Buy!!! Booyah!
root@federalreserve.gov # /sbin/shutdown -h now
LOL! ! ! !
to bad Hank is SU!!!!
..................
And they called it... "Lynch America"
And this means?
What's the significance of the TED spreads widening?
"Lynch America Countrywide"
CSC came up with it earlier
Why the outrage against praying?
Yahoo leading off with "Bank Deposits in Danger?" Link goes to a Roubinni interview. I'm thinking about pulling the other half of my savings out of the bank this afternoon. If I wait for an actual run, it may be too late.
That lead is irresponsible, they make it seem like if you have a checking account you are in danger of loosing your money.
My roomate actually is an editor for the front page of Yahoo I am firing off an e-mail to her and ask why they decided to run such an inflammatory headline.
dashingdwl writes:
Why the outrage against praying?
dashingdwl | 09.15.08 - 5:10 pm | #
It's a Haloscan thing...
i wonder if we will see line ups.
contraction is a bitch!
Why the outrage against praying?
I guess the point is what you're praying for (cf. Bin Laden, Bush)
Humor break (political kind):
Iowa Lt. Gov. Patty Judge (D) at a public steak fry:
Sarah knows how to field-dress a moose. I know how to castrate a calf. Neither of those things has anything at all to do with this election. But since we know so much about Sarahs special skills, I wanted to make sure you knew about mine too.
We should send Patty Judge to Wall Street on a mission.
Any parent who names their daughter "Gretchen" is seriously handicapping them in life.
If they're half pretty, they get to dance the poles in the local strip club.
If they have a face that scares little children, they end up working for the new york times.
rationaljeff
CNBC is doing a special tonight called "How Safe is Your Money?"
You know how the networks cover hurricanes, massive snow and ice storms????
The MSM just got their latest "hurricane" and they are going to milk this for all it's worth.
i love that fake and bake tan, she looks like she stood in front of an open microwave oven.
actually, that would explain the tan AND the articles.
rationaljeff:
This is why he is scared
FDIC Can't Afford Washington Mutual Failure
FT.com / UK - Deposit insurance system may face WaMu test
The more these fools in DC, the FED and the Treasury do to try and stop this the worse this is going to get and the longer it's going to last.
Although the media is encouraging us not to panic, the Federal Reserve is doing exactly that. The evidence:
*Allowing equities as collateral for Fed borrowing;
*Suspending the rules to allow deposits to be used to finance investment banking operations;
Boys and girls, the Federal Reserve has soiled itself.
A strong, very strong, argument can now be made for going long mattresses.
So, this is the fourth shoe to drop? Is this thing a centipede?
Ha, the Gretchen bashing is one thread down....
Which mattress does Conjure prefer?
"That lead is irresponsible, they make it seem like if you have a checking account you are in danger of loosing your money."
Nah you'll get it, it is just a question of what kind of purchasing power it will have when the just flat out start the printing presses which may be a year or two away.
Patty Judge- "I know how to castrate a calf."
Conjure asks, "Do you use a knife, or your teeth?"
Where is Jas? I need to American Dopes...I will even take baby Jas
"Ha, the Gretchen bashing is one thread down...."
Maybe I need to run down there and give her a good bitch slap.
Do you use a knife, or your teeth?
Why didn't I see that coming?
We know Conjure's answer for that question, mp;)
I was just going to suggest that conjure join Patty Judge in a field trip to Washington, but mp beat me to it.
Question from a lower down thread:
Anybody see any long lines and run type evidence at WaMu branches? One person said they saw lines at one branch. A client sez she has 120k at WaMu. I said move 20k out. Now, I rather think she should move the whole thing. Will tell her than tomorrow.
The sum of all fears.. are we there yet
Bush Administration assured us all is well
SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL
That ought to help those option arm things.
Cheers,
don't forget to post the a2/p2 spread when fed releases tomorrow - it was 92 bp on Friday, even then elevated - any bets on where it landed today?
4th wave of how many ?
This is why he is scared
FDIC Can't Afford Washington Mutual Failure
...?
FT.com / Registration / Sign-up
skizye
Are people seriously implying that the government would default on it's FDIC commitment if WaMu fails?
I can not see that happening, even after the last 24 hours.
The FED defaulting on insured deposits at WaMu? Really?
Liz take it all out and shove it in your pants.
Conjure says, "Although I expect the corpse could bounce tomorrow, the next leg down is a done deal."
"REJOICE, BEARS! YOUR MOMENT IS NOW!"
rational/=smart
I have watched people rationalize even the most foolish decisions.
At WAMU today. NO LINES. Another dump monkey rumor. If there ever really is a run on WAMU, I expect it will be discovered - and adequately documented - here as fast as anywhere.
I eat markets
More RE price collapse soon (capitulation).
I tuck tail and run.
There don't have to be lines for there to be a run on WM. I imagine there has been a stealth run in the form of deposit withdrawal.
electronic deposit withdrawal, I mean.
The Feds will not default on WAMU obligations. Ever. If necessary, the Federal Reserve will make a loan to the FDIC while Congress is called into emergency session. To default on WAMU would be the end, and it will not happen.
"The FED defaulting on insured deposits at WaMu? Really?"
No way, no how. If there's anything that would make this country go full bore socialist, that would be it. So it'll never happen. Because socialism is The Devil.
Congratulations to all who have been renting in the hopes of buying a more affordable house.
I raise my glass to you. Cheers!
So what happens to all of Lehman's CRE? Wasn't it $60 billion or so? Does that all get marked to market?
There are lots of ways to spell relief - even "roaids". However, there is only one way get get relief, and that is spelled "truth".
We watched as the cookies crumbled;
mesmerized by their shear number
And now we gasp .... as some still trade,
who'll be proved to be the dumber ?
My heart is still with my nation;
but my mind demands common sense.
Until we can stand eye to eye
there will be no true recompense.
And; yet. our lives just pass us by
as if nothing more important
than dollars gained and dollars lost
was the only thing that's for rent.
Think and trade well, but think
OT:
HP just announced a 24,000 jobs cut over nxt 3 yrs. Half the job cuts will be in the U.S., Palo Alto, California-based Hewlett-Packard said...
Not good for No Cal.
I imagine there has been a stealth run in the form of deposit withdrawal.
Remember that we are only about 2 weeks from the end of quarter FDIC reporting. If there is a stealth run in progress, and it doesn't bring WM down, then we should see signs of it when the reports get released later in Oct.
How far are we away from trouble (ie, bank run trouble) with BAC?
I was at Wamu on Friday. I asked the teller if people had started pulling their money out yet. She said no, actually they have been increasing deposits. I don't know if I buy that except maybe the 5% CD is working. And it is just one branch in one town.
Either your money in the bank disappears directly or indirectly if Wamu fails.
Same end game.
Hello Zimbabwe
I'm not a plant for WAMU or anything like that. I just get really p***** o** when I see people trying to add to the considerable troubles we already face.
"REJOICE, BEARS! YOUR MOMENT IS NOW!"
no, they are about to prohibit shorting.
the closest thing you will have to shorting will be FXY.
So what happens to all of Lehman's CRE?
Marked to market or(in the case of physical RE) sold.
There will be blood.
It's all good. The 30 year is up over 5 points today. What could possibly be wrong with that?
I was at a Fred Meyer store today that has a WAMU branch. The tellers looked extremely unhappy and the only customers were an elderly man and woman who appeared to be withdrawing CD's.
Yeah, I tend to ignore the WAMU bank run rumours. There were people last night claiming that 2 out of 3 ATM's were not accepting debit cards transactions last night. Now, if you said the same thing happens tonight, well then....
elgraccho,
I posted an article a few back about them trying to discretely and slowly sell it. I think they dont want more havoc in the CRE.
I dont think it will work...
.....
good tidings from houston!! Ike didn't kill us and our townhome is completely undamaged. However, we are likely to be without electricity for another week. We have running water. Too bad I didn't have tv bc I would have liked to have seen the talking heads on cnbc today.
I wonder how smart you have to be to run venerable institutions into the ground. Those harvard MBA guys are too clever for their own good. NY city real estate is about to nosedive methinks. The worst part of this whole hurricane ike thing is that I miss the eagles vs the cowboys
As most surfers know waves come in sets. Usually 3 to 5.
So I think we're almost done with this set!
.....
As most surfers know waves come in sets. Usually 3 to 5.
But bank failures come in hundreds.
Char:
Glad you're alright.
Now you can ride out another storm.
How cool is that? A two-fer.
Hang in there.
I can haz skwerl NOW!!!
People should understand the difference between money being covered under insurance and available to you when u need them.
When FDIC goes kaboom, they borrow initially from tresury. If that is not enough then they create payment schedule. So if you aren't lucky then you will get your money back at FDIC's scheduled period without interest.
HP just announced a 24,000 jobs cut over nxt 3 yrs. Half the job cuts will be in the U.S., Palo Alto, California-based Hewlett-Packard said...
Not good for No Cal.
anon | 09.15.08 - 5:31 pm
The cuts are coming from EDS-not good for Texas.
The Feds will not default on WAMU obligations. Ever. If necessary, the Federal Reserve will make a loan to the FDIC while Congress is called into emergency session. To default on WAMU would be the end, and it will not happen.
Fair Economist
That might actually be the pitchfork and scythe moment in modern American history.
As most surfers know waves come in sets. Usually 3 to 5.
But bank failures come in hundreds.
Maria Bartiromo asked ken lewis how many banks may be around after this mess. His answer: I haven't thought about it, half?
McCain, Obama blast regulators, managers for Wall Street woes
(Finally some truth when it is too late to help.)
McCain, Obama blast regulators, managers for Wall Street woes - CNN.com
Was at wedding Sat. night-Wamu banker there-long time employee-16 years..He stated that the 5% cd increased capital this month....Still seems to be some pollyannas holding out as many in the reception were commercial and re brokers..all felt comfortable..and they came from NY, Seattle, SF, LA and San Diego...
I was only bear....
My concern is not actually about money. FDIC doesn't have enough employees to do the shut down or whatever they decide to do. From what I understand they don't have one employee per branch and I understand custom is that they sent employees to the branches to lock the doors, at least temporarily. Perhaps FFDIC can comment?
Obviously, the govt can just print all the money they want. Are they going to just hand a bunch to WaMu preferentially until they can train enough employees?
By the way, we still have a checking account there with a few thou, and a safety deposit box, and I have been nervous about WaMu for quite some time.
AIG Employees on Edge as Once-Safe Company in Turmoil AIG Employees on Edge as Once-Safe Company in Turmoil
Ok, anybody have any idea of what mkt will do tomorrow?
"SP on crack would pray for a bigger moose."
Catherine tsarina of Russia was said to have horses trained for special benefits.
Does SP have a moose as her special friend?
S&P cuts WaMu to "junk"
WaMu Rating Lowered to Junk by S&P on Mortgage Losses (Update4) - Bloomberg.com
sorry if this was already noted. I didn't see it here.
Friday I talked to a small bank president (virginia).
We often pick each other's brains. His brevity said it all.
On lending
"dead"
On standards
chuckles "tougher,... waayyy tougher"
on turnaround
"a year"
He has been a (mild) bear for a while but I admit I was a little unnerved by his moving closer to my (grizzly) camp.
That elderly couple has been spotted in branches all over the nation. They really get around.
Fair Economist is a fair economists. There is enough panic in the air without pushing unfounded rumors on WaMu or that FDIC cannot cover their insurance. Of course I did a one man run on WaMu last week but that was because it seemed going through all of the FDIC red tape would be a pain.
Most of us know that the danger is not that the FDIC will fail to cover, but that after they cover 1000 banks the currency will be inflated. We have a choice -- no dollars or worthless dollars.
Unfounded?
Look one thread up:
Junque status.
I pull up a different chart that what was posted...
Bloomberg.com:
Personal Finance
"Ok, anybody have any idea of what mkt will do tomorrow?"
Liz, as Conjure said, we may see the corpse bounce tomorrow because of VIX, but the next leg down is damned near in the bank.
Liz,
Correct. I've been saying for two years that FDIC did NOT have staff for this crisis. They are hiring and also have a few contractors who are hiring but it is currently not enough. The tiny Dallas staff is already exhausted and some of those are still working at banks that have already failed. Just because a failed bank reopens under another name the FDIC continues staffing at that failed bank and also in its offices in DC and Dallas. The existing staff due to constant downsizing for a decade or more is already stretched very thin, exahusted and many are now in their late 50s,60s,70s with less stamina and can also up and retire if you work them too hard. It's a zoo Liz!
Thx for the comment FFDIC.
Going to dinner.
Toodles, everybody.
Another thought re where the market is headed.
It should, by now, be perfectly obvious that the investment banking model is broken and can't be put back together again. This means, at least for the immediate future, we return to the more traditional banking model.
In doing so, there are going to be significant disruptions in credit. The "anything goes" credit bullshit has come to an end, not only for businesses, but individuals as well.
The economy is going to get hit with at least a double whammy. Consumer credit, gone. Business leverage to goose earnings, gone.
So, forget about current market valuations on equities--they're bullshit. P/Es are going to come way down.
r0m30 writes:
Kneel_before_Zod writes:
root@federalreserve.gov # /sbin/shutdown -h now
or root@federalreserve.gov # rm -rf /
root@federalreserve.gov # cat "Panic: can't stat /" > /dev/tty0
Bernanke is a rag trader from writes:
And this means?
What's the significance of the TED spreads widening?
Bernanke is a rag trader from | 09.15.08 - 5:09 pm | #
It means banks don't trust eachother, ie JPM doesnt want to lend to C since it is not sure if C is solvent enough to pay them back. Scary Movies
If ur not takin ur money out of banks ur playing with fire. Fdic is undercapitalized. The reason you don't see traditional runs is because of the internet and atms. Most regular joe's aren't paying attention and don't add up to the majority of deposits. The one's you have to worry about are the large account holders who have millions and who bring those amounts down to the 100,000 threshold.But even at that are you going to wait three months for FDIC if you lose your job or need cash right away.
This is why he is scared
FDIC Can't Afford Washington Mutual Failure
FT.com / Registration / Sign-up...?
skizye
Are people seriously implying that the government would default on it's FDIC commitment if WaMu fails?
I can not see that happening, even after the last 24 hours.
The FED defaulting on insured deposits at WaMu? Really?
rationaljeff | 09.15.08 - 5:25 pm | #
There would have to be either an emergency appropriation from Congress or yet some other form of Fed window (wall hole) to prop it up. Yes I'm pretty sure they would do it, since if you have just one instance of an insured depositor not getting their cash, then there will be lines out the door of every bank branch in America, regardless of the bank. The only solution at that point would be an FDR type bank holiday...cant have that BEFORE an election. So yes the funds get provided to the FDIC, but tack on an extra $100-200B to the deficit.
Next year's stimulus checks will be from FDIC.
Or Treasury lets Fed commit suicide by swapping all its reserves for ponies.
The Markit CMBX and CDX spreads have resumed their upward trend as well...
Someday there won't be enough free money in the entire world to buy all the outstanding treasuries we have. Then we have problems, issuing debt with no buyers. Anybody see that problem happening in the near future. It seems a bad downturn might dry up the foreign coffers.
"Nor Car writes:
Bush Administration assured us all is well
SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL "
First there is a denial, than there is an acceptance;
since most people are about year and a half late with selling, it's time to DUCK & COVER comrades.
DUCK
COVER
DUCK
COVER
i am going to go to bed, it will be a long and interesting week.
best wishes ya all,
mp,
what's a VIX?
Uncle Ar; I too noted Mr. Lewis estimate of a 50% rate of bank failure in the coming year.
This from the president of BOA. Wow!
Never mind; found it on wikipedia