August 10, 2007

IndyMac, the king of Liar's Loans, is also a thrift with great savings rates. So, would you trust IndyMac with your money?

Here's how I see the business model, simplified version, personal opinion. Research where you put your money folks. Or you might not get it back one day (soon), and yes I'm short IMB...

1) Get suckers to put money into attractive-rates
FDIC insured savings accounts


2) Lend the money out as Alt-A mortgages to people who lied about their incomes and ability to pay

3) Sell off the toxic waste for as long as the music played

4) Get left holding the bag when market crashes and nobody wants to buy the cancer CDOs

5) Don't properly reflect the value of the bag on your books, deny there's any trouble

6) Go belly up after auditors or the Feds force a Mark to Market

7) Savers lose everything above the $100,000 FDIC limit

7 comments:

Anonymous said...

HELL NO!! & the rates, while competitive, are not the best not even factoring in the risk of loss of the deposit funds. Even w/ FDIC if they went under it would take time to get your FDIC claim processed and fulfilled, so you'd lose access to your funds for a certain time period.

JBR in San Diego said...

1) Get suckers to put money into attractive-rates FDIC insured savings accounts



2) Lend the money out as Alt-A mortgages to people who lied about their incomes and ability to pay


Shouldn't that be Lend out 10,100,1000 times the deposits to Alt-A losers who lied through their f*cking teeth because criminal realtwhores and mortgage brokers told them to???

LauraVella said...

The FDIC is also covering IRA money separately up to 100k.

Not much I know, but at least its something.

Anonymous said...

Someone mentioned on a different thread even FDIC was not safe from going under. Would any please expand on that thought. What amount would take FDIC under and what do you think would happen next?

Andy in San Diego said...

The FDIC limit has been $100k for as long as I remember (which would be at least since the '80s). So every year we're "insured" for less and less. Yet another scam.

Dolph said...

I would trust them because the FDIC has to give me my money back should the bank fail....bwahahahaha.

I'll take the higher rates and laugh at their misfortune while doing it.

Anonymous said...

FDIC does not cover loses due to "fraud" at the banking institution.