January 04, 2008

FLASH: UK government rushes new policies to prepare for more bank failures. Get ready folks, it's coming...


The British government, after acting like stupid chickens with their heads cut off during the collapse of the Northern Rock bank, has now put into place new policies in order to deal with the wave of bank failures about to hit in 2008 and beyond.

Not a moment too soon I'd say.

Also, the US Fed today stepped up their secret cash auctions to failing banks by 50%. Hmmm...

Waves of banks will be failing in Europe and the US. Waves of 'em. No surprises for HP'ers.

IF YOU HAVE MORE THAN THE FDIC LIMIT IN ANY US BANK - GET IT OUT TODAY AND GET IT OUT NOW - YOU HAVE BEEN WARNED. IF YOU HAVE DEPOSITS ANYWHERE ELSE, OPERATE UNDER THE ASSUMPTION THAT YOUR BANK WILL FAIL. GET YOUR MONEY INTO SAFE ASSETS NOW - AND NO, MONEY MARKET FUNDS ARE NOT SAFE.

UK regulator to get tough powers over failing banks

Britain's financial regulator is to be given sweeping powers to intervene in failing banks, as part of a banking code shake-up aimed at avoiding a repeat of the crisis that engulfed Northern Rock, the mortgage lender.

Alistair Darling, the chancellor, said the new powers - which echo those in place in the US - would allow the Financial Services Authority to seize and protect depositors' cash when a bank got into serious difficulty, heading off the risk of a run on the bank.

He also proposed changes to Britain's regulatory system - the so-called tripartite system - where the Treasury, Bank of England and FSA work together in handling banking crises.

"I want to make sure our own legislation is up to the mark in dealing with problems when they arise in future," Mr Darling told the Financial Times.

38 comments:

upthecreek said...

"I want to make sure our own legislation is up to the mark in dealing with problems when they arise in future," Mr Darling told the Financial Times.

WOW it sounds like he is very sure that the bank failures WILL HAPPEN IN THE FUTURE" Not IF but Will.

Anonymous said...

I guess his job is to run the printing presses!

Anonymous said...

I thought the policy was just to devalue the currency like Bernanke is doing

f'ed said...

Looks like Peter Schiff is right again about credit severely drying up here. If credit for student loans is crumbling, consumer credit should get worse as well. I believe student loans are very hard to have forgiven relative to other types of credit.

* * *

Sallie Mae, the nation's largest student lender, has suffered in recent months from higher borrowing costs and the collapse of a $25 billion buyout. It has slashed its earnings forecast for the year and held a special sale of stock to raise $2.9 billion in cash.

Sallie Mae, formally known as SLM Corp., said in a regulatory filing Thursday that it planned to "be more selective" in making student loans, both those backed by the federal government and the higher-rate private loans.

The company said in its filing with the Securities and Exchange Commission that it was retrenching in the business because of market conditions and the landmark student-loan law that took effect last October, cutting billions of dollars in federal subsidies for student lenders.

Meanwhile, defaults are rising on student loans, and credit-market tremors similar to those linked to the mortgage crisis have recently started to surface in the $85 billion student-loan market.
-AP

Anonymous said...

Remember, single Americans, only $100K max insured in ANY ONE FDIC/acct. BANK, NOT each $100K account in one bank.

Move your money around Right Now, Today, the sh*t has hit the fan, Friday NASDAQ -98 pts, DOW - 250+ pts.

Game, Set, Match.

Welcome to the New Depression
Welcome to Hell.

Get George and Dick in the dock NOW. They have TO PAY for their crimes... Shylock had it right.

PS: Trolls: Do Not bring a Knife to a Gunfight...

Anonymous said...

Anyone watching Cramer? He has spent 15 minutes crying that bernake didn't cut enough and that inflation is not an issue.

Damn I hate that fucker.

Anonymous said...

TILT!!!

Anonymous said...

I believe student loans are very hard to have forgiven relative to other types of credit.

---

Yep. Student loans can't even be discharged in bankruptcy.

Anonymous said...

NEVER bring a knife to a gun fight.

You'll never survive.

Jeez!

What an idiot.

Watch the first Indiana Jones for at least some clue.

Anonymous said...

2008 will mark the coming of the *Greater* Depression.

We'll all be cooking our ramen noodles over burning trash cans and singing acapella next winter.

What too do? said...

With the markets tanking, gold and my precious minerals stock should have gone up modestly today. Hmmmm..... traders cashing out to cover hedges? Might be time to seriously look into physical gold ownership. What country to hold it in though?

Anonymous said...

With the markets tanking, gold and my precious minerals stock should have gone up modestly today. Hmmmm..... traders cashing out to cover hedges? Might be time to seriously look into physical gold ownership. What country to hold it in though?

Peter Schiff says the Perth Mint is a good option. His book "Crash Proof" has a good section on gold ownership.

Lulu said...

If numerous banks were to go bankrupt, would the FDIC be capable of paying everyone who had money deposited in those banks?

keith said...

The FDIC insures over $4 trillion in deposits and has reserves of about 1.2% to cover that $4 trillion or about $40 billion.

In other words, not even close. Countrywide alone has more than $40 billion in deposits.

The US taxpayer will pay the price.

http://www.fdic.gov/about/strategic/report/2006highlight/fin_hi.html

Anonymous said...

Yep. Student loans can't even be discharged in bankruptcy.


They will garnish your wages too

Anonymous said...


If numerous banks were to go bankrupt, would the FDIC be capable of paying everyone who had money deposited in those banks?


The Fed has the printing presses and will be happy to lend us the money needed to repay our own debts

Anonymous said...

Like I said, sell California and So Arizona to the Asians and Arabs now. We're going to lose it to the Mestizos anyway, so sell it now. I figure we can get $10 trillion. After that, pass a balanced budget amendment so we never get in this mess again. No more defending Europe, Asia and Israel. They will have to stand on their own. No more generational welfare. Anyone on welfare will be sterilized until they are off welfare. No more government subsidies for business. Death penalty for thieving CEO's and BOD's who rape the country and shareholders. Everyone who committed mortgage fraud will be forced to perform community service on the weekends or else face hard prison time. we build a border wall and pass an immigration bill that will allow more educated people to come over. Anyone who is deported and comes back will be sentenced to work on a chain gang to build the border wall. All gang mambers will be shipped off to Iraq or Afghanistan.

It can and should be done.

Anonymous said...

To anon 12:42am,

Your ideas would solve most of our major problems in the U.S. That's in a controlled environment though.

Now, how could a Leader do this with all of the other influences involved though?

That's the challenge.

Anonymous said...

Forgive me if I sound dumb, but would it be prudent to post articles here regarding safe cash equivalents or would that be considered way off topic on this board? I could use some serious advice on where to deposit approx. one million USD in cash please. Right now I'm getting 5% at a local bank in an MMA.

I love this website, so please don't be too hard on me. I'm sensitive.

Thank you guys very much. I appreciate this site very much.

keith said...

Countrywide and Indymac are paying far and away the highest rates on CD's today in America

http://tinyurl.com/yowjfh

Now why do you think that would be?

In my opinion, these two toxic lenders are on the brink of failure. They need cash like a crack junkie needs a fix - it's life or death

The Fed via their secret auctions and the FHLB have been their supplier recently, but at one point that funding runs dry as CFC and IMB's collateral can't cover more debt, even from the reckless fools at the Fed and FHLB.

So the two junkies go to suckers on main street promising high returns and FDIC insurance. That lasts for awhile, but at one point SOMEONE in our government or FDIC notices that they're about to fail and puts a stop to it.

God forbid the media do their job and dig a bit.

Get some popcorn. When CFC and IMB fail, you know the real serious stuff has started, and it's time to head to the bunker. They'll start falling like dominoes after that.

What too do? said...

Forgive me if I sound dumb, but would it be prudent to post articles here regarding safe cash equivalents or would that be considered way off topic on this board? I could use some serious advice on where to deposit approx. one million USD in cash please. Right now I'm getting 5% at a local bank in an MMA.

I love this website, so please don't be too hard on me. I'm sensitive.

Thank you guys very much. I appreciate this site very much.
..................................
Not sure if you are legitimate or not, but in these times, your question sure is.

Edgar said...

million dollar anon: Read this.

Warning: Not investment advice.

Anonymous said...

God forbid the media do their job and dig a bit.
--------------------------------

I just have never understood how you can have an unbiased media that depends on advertisement.

Anonymous said...

sell California and So Arizona to the Asians and Arabs now

I was born in California

If its sold, do I retain citizenship with the US or do I now become an Asian, an Arab or a Mexican?

Anonymous said...

DIS IS 2 Funny BOSS!!!! If I had an ARM and it was about to reset then I would pocket the loot for the 6 months and run! You know it's coming so why be broke with bad credit later? Save the money now. Rent later and still have bad credit. Wake up Mcfly Wake UP!!!!! Gee Boss can I keep paying my loan and feel good? Huh Boss? Huh???

Anonymous said...

i WONDER THE KICKBACKS RECEIVED THAT WENT TO THE BOARDS OF DIRECTORS OF THE BANKS THAT ARE PAYING 11 PERCENT INTERESTS ON INTERBANK LOANS WHILE DEPOSITORS RECEIVE WHAT? 3,4,5 PERCENT..."DIFFERENT" MONEY?

Anonymous said...

SHAREHOLDER (DOLLAR") DISCRIMINATION LAWSUITS

Anonymous said...

DIS CRIME IN ATION................

Anonymous said...

I could use some serious advice on where to deposit approx. one million USD in cash please. Right now I'm getting 5% at a local bank in an MMA.
_________________________________

OK, assuming you're not joking, you need to do two things ASAP, because it's better to be safe than sorry. First off, get out of money market funds immediately; they're full of all sorts of exotic derivatives which will cause you to lose your shirt when the economy tanks. Secondly, deposits at FDIC Banks are guaranteed ONLY up to a maximum of $100,000. I know it will be a lot of work, but you'll need to set up at least ten more accounts in ten different banks. Put $90,000 in each account, preferably in CDs. That should hold you for a couple of years until accrued interest pushes you over the $100,000 limit and you'll have to open more accounts at different banks for the excess.

Set said...

What good will it do to put money into FDIC insured banks if there is not enough money to cover?

Anonymous said...


I just have never understood how you can have an unbiased media that depends on advertisement.


Are they supposed to work for free? Even PBS and NPR have donors, so they are not unbiased. Government owned media are funded by the government, so they are not unbiased. Even blogs are biased by the opinions of the blogger.

Set said...

What good will it do to put money into FDIC insured banks if there is not enough money to cover? And even if there is, with the value of the dollar plummeting, it sounds like it will be worthless. Where is the safest place to put it? I have a CD with Indy Mac Bank that will mature on Jan. 20 and I am considering using it to pay off an equity loan of $22,000? Should I buy gold instead? If so, where do I buy it and how liquid is it? Thanks

Anonymous said...

Thank you for your responses. No I am not joking about my million dollar money market account. I am not in a money market fund, it is a money market account. I believe there is a huge difference, please correct me if I am wrong. I know I can be in several different banks or use different ownership vehicles in the same bank to be within the FDIC insurance requirements, however I am very surprised that separate accounts or gold are the only safe alternatives. Does anybody have an opinion on Swiss Money Market Claims or New Zealand government paper, or anything else for that matter? Thank you again for your responses. I appreciate it.

Anonymous said...

Anonymous Anonymous said...

Forgive me if I sound dumb, but would it be prudent to post articles here regarding safe cash equivalents or would that be considered way off topic on this board? I could use some serious advice on where to deposit approx. one million USD in cash please. Right now I'm getting 5% at a local bank in an MMA.

I love this website, so please don't be too hard on me. I'm sensitive.

Thank you guys very much. I appreciate this site very much.

January 05, 2008 2:30 AM

Well I remember reading in a book by Robert Prechter and in that book, he discusses how to buy gold and silver and where to store it at and which overseas banks are the strongest. Also, I do know that banks in Switzerland, Lichtenstein, etc... are very strong and they respect personal private property rights much stronger than the U.S. For more information on that go to the http://www.sovereignsociety.com/

Good luck and take care. I am hoping that things get really bad financially but I too am preparing myself. The worst thing a person can do is listen to the main stream media and listen and follow all of their rosy predictions. Thank God for alternative sources of information like this blog and others and then one can read, research and make up their own mind in terms of where to take their finances.

Anonymous said...

Are the bank ratings at bankrate.com legitimate. For example if I put my money in a bank that bankrate.com rates 4 stars, should I not have to worry about it? How accurate is their rating?

Anonymous said...

What to do said:"With the markets tanking, gold and my precious minerals stock should have gone up modestly today. Hmmmm..... traders cashing out to cover hedges? Might be time to seriously look into physical gold ownership. What country to hold it in though?"

I noticed that also. Must be either sell off in gold (assets)to cover losses, or possibly the feds are manipulating gold stocks.

All I know, is if the stocks are manipulated, they can't keep them down for too much longer.

Anonymous said...

lulu said:"If numerous banks were to go bankrupt, would the FDIC be capable of paying everyone who had money deposited in those banks?"

FDIC Insurance was created after aprox 8000 banks closed their doors during the Great Depression.

I doubt even if there were a run on banks today, FDIC insurance would cover all deposits - no matter how many banks went bellyup in the process.

If I'm not mistaken, the Feds job is too create money out of thin air and to keep the economy on track by raising or lowering interest rates.

LauraVella said...

Anon said:"i WONDER THE KICKBACKS RECEIVED THAT WENT TO THE BOARDS OF DIRECTORS OF THE BANKS THAT ARE PAYING 11 PERCENT INTERESTS ON INTERBANK LOANS WHILE DEPOSITORS RECEIVE WHAT? 3,4,5 PERCENT..."DIFFERENT" MONEY?"

Exactly. The banks have it turned around backwards.