And then Northern Rock came to America. In waves.
In my personal first-amendment protected opinion, WaMu will fail in the next few days. I have no financial interest in WaMu. I just want to make sure my readers, and their friends and family, know what's coming.
Do your own research. Come to your own conclusions.
The bank failures are here. Starting with the toxic lenders who fell in love with mortgage fraud and liar's loans.
Deal with it.
The bank failures are here.
IndyMac depositors line up for cash after seizure
PASADENA, California (Reuters) - Hundreds of worried IndyMac Bancorp Inc customers descended on the company's branches on Monday to withdraw their money, after regulators seized what was once one of the largest mortgage lenders in the United States.
Washington Mutual says its capital position is strong
SEATTLE (AP) -- Responding to a sharp plunge in its share price and investor worry about continued problems in the mortgage market, Washington Mutual says it has enough spare cash and strong capital ratios to handle the downturn.
July 14, 2008
FLASH: HERE'S A PHOTO OF THE LINE OF PANICKED SAVERS OUTSIDE INDYMAC. THIS SCENE WILL BE REPEATED AT WAMU IN THE NEXT FEW DAYS. DON'T LET THIS BE YOU
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View the full Associated Press slideshow on the desperation outside IndyMac here
http://news.yahoo.com/nphotos/IndyMac-seized-federal-regulators-Pasadena2C-California/ss/events/bs/071308indymac/s:/nm/20080714/wl_canada_nm/canada_indymac_col
Folks, it's here.
It's here.
Stocks that were hit the hardest Monday included First Horizon National Corp., which operates in the Southern United States; Zions Bancorp, located in Utah and Idaho; and Washington Mutual Inc., the nation's largest savings and loan. Stocks of bigger banks such as Wachovia Corp., Citigroup Inc., Bank of America Corp., and Wells Fargo & Co., also tumbled.
http://biz.yahoo.com/ap/080714/banks_earnings_preview.html
Come on people, it's only money,
(well, only Your Money)
"I have $360,000 in this bank, and I was misled by this bank," said Robert Clark, a Glendale resident. "I gave the names of my mother, my sister and my brother on the account so I thought I would be insured. I don't know what to do. I really don't know what to do."
---------
If I could talk to Robert Clark, I would give him some advice on what to do.
I would tell him to kick his own ass for being such a clueless prune. He decided to rely on the people at IndyMac, who couldn't care less whether his money is insured or not, rather than call the FDIC and get the facts. How in the world do people like this manage to accumulate any money in the first place?
Do you think Ken Lewis and BofA now understand that they paid a couple of billion for Countrywide, who was worth $0. Actually worth probably around negative $30 billion or so?
Idiots.
Watch what happens to BofA now too. They're waking up in the morning realizing what they did last night.
WaMu shares now cheaper than a Starbucks coffee
This does not look anything remotely close to the Great Depression. I don't see the similarities at all.
Fractional reserve banking is now on trial, and the prosecution's case looks to be pretty strong.
I'm not a WAMU fan but they aren't bankrupt. They just built a 5 story building in my old neighborhood in Portland, Oregon. It's pretty expensive land, not right downtown but in a heavy commercial center. Bankrupt comapanies don't build companies like this.
Watch for one of the dirtiest companies out there - Option ARM king First Fed Financial - to go under in the next few days too
It's amazing to me that companies like that took the shortfall that people didn't pay on their mortgages to immediate profit - and the accountants and auditors were cool with that.
Rome burned, and Chris Dodd and Barney Frank fiddled.
Anonymous said...
This does not look anything remotely close to the Great Depression. I don't see the similarities at all.
--------------
The show is just starting. They are introducing the actors, relax, sit back and enjoy the show.
That comment about WaMu building an expensive building as a reason why they won't go belly up is easily the dumbest comment in the history of this blog
Ever see the Astros play at ENRON field?
Unreal.
Think, people, think. And dig through a balance sheet every now and then.
260K
POOF!
Keith, where is a statement from the NAR? Since financing is going to be a serious problem shouldn't they come out with a statement to inform and educate their realtors who can then inform and educate the buyers and sellers?
Or is the NAR just the marketing arm of the real estate complex that doesn't get involved with the finance department?
Very Sad!
*Reminds of something one of my mentors told (proved) to me years and 2 recessions ago:
'Some people just deserve to be poor'.
See comment below for validation. What an asshole. Anonymous said...
I'm not a WAMU fan but they aren't bankrupt. They just built a 5 story building in my old neighborhood in Portland, Oregon. It's pretty expensive land, not right downtown but in a heavy commercial center. Bankrupt comapanies don't build companies like this.
July 14, 2008 10:42 PM
.
Anonymous said...
I'm not a WAMU fan but they aren't bankrupt. They just built a 5 story building in my old neighborhood in Portland, Oregon. It's pretty expensive land, not right downtown but in a heavy commercial center. Bankrupt comapanies don't build companies like this.
July 14, 2008 10:42 PM
LOL - You're Killing Me! Go have aother order (make it a double)of Fried Dough in your SUV! Nascar this week, Jane!
Chris said...
"I have $360,000 in this bank, and I was misled by this bank," said Robert Clark, a Glendale resident. "I gave the names of my mother, my sister and my brother on the account so I thought I would be insured. I don't know what to do. I really don't know what to do."
Fuck you Clark. You're a stupid dipshit (NOT a viiictiiim)
who deserves to be poor!
Stupid.
"This does not look anything remotely close to the Great Depression. I don't see the similarities at all."
No, those photos were in black and white.
This does not look anything remotely close to the Great Depression. I don't see the similarities at all.
Duuuuh.... Just put a monochrome filter over the images and then it will look like the Great Depression.
But seriously dummies, do you think anybody saw the Great Depression coming? It's not until your ass is out on the street and you're begging for change that you'll realize you're in the Greater Depression.
"I have $360,000 in this bank, and I was misled by this bank," said Robert Clark, a Glendale resident. "I gave the names of my mother, my sister and my brother on the account so I thought I would be insured. I don't know what to do. I really don't know what to do."
Hey Clark, why not call Waldo (Bushco)at the White House? Don't be surprised if you get a busy signal though. There are many others like you who were called and chosen today...
Try and get an audience with your leaders, Bushco and Cheneyburton. It won't be easy to do, as after they will never make another public personal appearance the rest of their terms.
Look for another bogus and wholly made-up for public consumption 'attack' 'war', 'disaster' 'WMD' 'yellow-cake' 'mushroom cloud' (check one or more)soon to take your mind off the $260K you just shit down a rathole due to your gross financial incompetence and frankly, stupidity.
Maybe your mother/sister/brother can put you up for awhile....
Don't give up on George and Dick, after all, they want a strong dollar for America....
Heil Hitler!
How can any human being with a pulse and a bank account not know that you are only insured up to $100,000 per account, 10 separate accounts 10x100,000 it is on every door, window, as you enter a bank, sorry.
Hey Keith, don't forget the "casey serin destroyed the world financial system" label for this kind of stuff.
It makes my day! ;-)
Best quote in the article-
"John Bovenzi, an FDIC official working as IndyMac Federal's chief executive, talked with customers as they waited for the doors to open, assuring one that "THIS BANK IS AS SAFE AND AS SOUND AS ANY BANK IN THE COUNTRY RIGHT NOW."
ROTFLMAO
Do you think any of the sheeple waiting outside INDYmac were able to understand the horrible trith in that statement? If Robert Clark is any indicator I'm thinking probably not.
The truth is in what is said, not what you want to hear and Mr.Bovenzi of the FDIC just went on record stating that every bank in the country is as f*cked as INDYmac.
wamu says their financial position is strong. hmmm, isn't that what bear stearns said about a week before they were taken over?
The start of new building projects often marks the top; it's all down hill after that for the organization that put the project together.
It's interesting, well not really, how the MSM doesn't show the footage of an old fashionded bank run.
This does not look anything remotely close to the Great Depression. I don't see the similarities at all.
=============================
Yea, where are the carts of apples for a nickel!
"I'm not a WAMU fan but they aren't bankrupt. They just built a 5 story building in my old neighborhood in Portland, Oregon. It's pretty expensive land, not right downtown but in a heavy commercial center. Bankrupt comapanies don't build companies like this."
--------------
LOL! Hey, are you related to DOPES?
"This does not look anything remotely close to the Great Depression. I don't see the similarities at all."
No, I think by the time it's over it's going to look worse.
Let's see, you saw the Great Depression so that means you must be at least 90 years old? Read history books man instead of comic books and glamour magazines. Bank failures in the 1930s took place over several years not all in a single week. These economic downturns can take decades to work through.
Folks! This is no joke! We are going through a momentous catastrophe. And it's just the beginning.
Watch out for the last 3months of Bush's tenure (or is it failure?). The 1990 Reform Act gives the SEC authority to suspend trading on Wall Street for up to 90 days. And that could happen as soon as the anticipated cascade of banks going belly up hits the trading floor.
That's how I see the last 90 days of Bush’s failure...But I still hope I am wrong!
I'd love to know the names of the banks on the FDIC watch list
Keith,
You're a blithering idiot. Did Enron build the field? Give me a friggin break. I didn't say it was a reason they won't go bankrupt, I said it was evidence they aren't bankrupt. You need to take a break and stop obsessing with the housing market. And to add to my comment about them building a 5 story building in Portland, I also work right next to a branch (literally across the street). No bank runs, no panic, it's business as usual. They also acquired a branch in San Mateo on El Camino close to where I live in the last couple of months (bought a building and moved in). Bankrupt companies just don't do this.
And go ahead, dig into their balance sheet. I am not going to waste my time because I already know what the answer is. You'll never do this, the blog is all hype and hysteria (and yes some of it is actually reasonable).
I just emailed my sister-in-law who lives in Vancouver Washington to get the hell out of WAMU. I am worried that because they have less than $100,000 in their account they won't do anything. Tried to tell her that FDIC's 53 Billion reserve is going to go fast and not to take chances. They are really good people and I hope they listen to me.
Anyone know anything about Regions Bank?
and the flight to gold begins...
http://tinyurl.com/6esdg5
"This does not look anything remotely close to the Great Depression. I don't see the similarities at all."
It's called sarcasm. I'm pretty sure the anonymous author was being sarcastic, guys.
And yes, some people did see the Great Depression coming. Just as many of us saw this thing coming. Although, while many images of this event will look similar to those of GDI, I don't think GDII will be an exact replica. History doesn't repeat, it rhymes.
I knew I could count on the brainstems to blame the victims of Indymac's failure.
That's one of the defining characteristics of the typical brainstem conservative: blaming the victim and relishing their suffering.
Doesn't LOOK like the great Depression?
LISTEN!!! Damn. Didn't you hear from the FEDERAL RESERVE top dog himself & his lackeys that there will be MORE bank failures this year. YOU can gamble that WAMU won't but you've been warned from Ben Bernake & Henery Paulson themselves telling YOU in CODE & take it however you like it that YOUR bank WILL fail this year. Look do you think they have inside knowledge? Hmm. Yup. THEY are trying to warn you!! helloo mcfly.
ANON: "This does not look anything remotely close to the Great Depression. I don't see the similarities at all."
You are RIGHT!!!. . .the pictures in 1929 were in black and white, and now we get color, and Youtube videos. . .much better don't you think??
you need a better poll:
how about..
GOT AMMO?
YES
NO
what a dumbass, thinking that simply adding family members to the account increased the amount insured. Did he bother to get such an important detail in writing?
how in the world did he manage to accumulate 360k?
It would be funny if he was a former mortgage broker, loan officer, etc.
In the immortal words of Jim Sinclair:
THIS IS IT. IT IS NOW! HAVE YOU TAKEN THE STEPS? THE FORMULA IS AT WORK!
JSMineSet.Com
I think it is a truism that when a company builds a new headquarters, they are already on the way to bankruptcy. Positive overspending sign.
Does anyone have a complete list of suspected bank failures to be?
Poor Jose Six Paco, he trekked across the barren lands of the John McSame state for a chance at the Americano dream. He spent months in the sun that scorched the orange man to leather, building vinyl and stucco crap boxes, only to give-up his cash-back, mortgage fraud wealth, in exchange for an Indy Mac subprime toastero oven and the chance of amnesty from the Messiah Obama. Like so many others, he has been burned by Wall Street, in the land of the realtywhore fleece, the politician fiddle, and the FED roasted lender.
Poor Juanita zinfidel, she endlessly circles the block in Paco's eFFr 350 dualie at $5 per gallon, unable to park the giant beast, as Paco stands in the blazing midday sun, waiting his turn for an FDIC handout. Paulson works the crowd, offering .50 cents on the Amero for the uninsured Indy Mac accounts, In the street, Juanita dodges workers removing the old sign and hoisting the new one into place with a crane. Unable to read or speak English, she asks her anchor baby brats to translate. Mama, it says " Bernanke Savings and Loan," they tell her.
"Our capital position is strong." is code talk for: "We're going under soon". Everyone knows it.
Yay! Bank failures! Bring em on! Better then any disaster movie.
Some say WWII got us out of the Great Depression. This time, we're already at war. So, what do we do now? Escalate, I guess. Anyone out there want to piss us off? Oh God, yes.
"I have $360,000 in this bank, and I was misled by this bank," said Robert Clark, a Glendale resident. "I gave the names of my mother, my sister and my brother on the account so I thought I would be insured."
According to FDIC rules, he is covered for $300k under that scenario. Of the $100k uninsured, he will get back $30k right away (50% dividend issued in this case). So, he has $30k in jeopardy, which he could get a portion of back when they liquidate the assets. Could have been worse. But $30k is still a lot of money to lose over simple ignorance and/or stupidity.
Use this FDIC insurance calculator to determine how much you are insured for:
http://www.fdic.gov/edie/
The thing I love about Housing Panic is that its all class in the comments.
The Mexican...
Good lookin out Keith...I took most of my money from my business and personal wamu accounts and transfered them to a different bank.
so. 401k with fidelity that i cant withdraw or rollover without penalties. In mutual fund. What do you think i should do.
Hey Keith,
I definitely give that comment a top three ranking!
Watch out for WAMU runs, reports of abnormal withdrawals throughout parts of west coast.
Its going to get ugly pretty quick here.
ICEMAN
My Weiner got stuck in the ATM at INDY MAC on Friday.
Hang Seng, 21,311.69, 11:16PM ET, DOWN 702.77 (3.19%)
DOPES!!!
SUZANNE!!!
ANON!!!
SWAN!!!
Anonymous said...
This does not look anything remotely close to the Great Depression. I don't see the similarities at all.
Duuuuh.... Just put a monochrome filter over the images and then it will look like the Great Depression.
But seriously dummies, do you think anybody saw the Great Depression coming? It's not until your ass is out on the street and you're begging for change that you'll realize you're in the Greater Depression.
===========================
That was about the size of it during the Great Depression according to my folks and grandparents. Even after the stock market crash it wasn't readily apparent, but when YOUR bank on the corner had a crazy mob pounding on its doors, then it got serious real quick.
Our family at the time did not trust banks, all owned their own homes outright (not financial geniuses, just lucky,) didn’t lose a penny in the crash and got along quite well compared to most. And they were not rich; they just had some money while most had none.
My one uncle once remarked that even with 25% out of work, if you had a job, there was no Depression. Your dollar went so much farther. It was just the tremendous drag that the 25% put on the other 75%.
Keith,
You didn't follow your own guidelines on posting with tinyurl links. Your first post link didn't work..... at least for me.
MBI is technically insolvent!
Oh yeah...
WaMu is a $2 stock waiting to happen. Said it back at $36...
WM $ 3.23 -1.72 (-34.75%)
Listen all of you fucking idiots and listen good: Our economy and banking system is the greatest in the world. All of you negative pessimists need to move to India, Pakistan, Zimbabwe, Ethiopia, etc.... if you think America is not the greatest.
Our nation is too big to fail. The entire world depends upon the genius and creativity of Americans. Without us, the rest of the world economy would falter and come to a halt. Thus, we have NOTHING TO WORRY ABOUT. This is just a TEMPORARY GLITCH.
Anonymous said...
This does not look anything remotely close to the Great Depression. I don't see the similarities at all.
________________________________
Geez, anon. was being sarcastic.
I'm a just a bus, but even I can see that!
The folks had absolutely no clue huh? And I bet their accounts have more money in them than mine!
In 9 months you people will literally be at each other's throats.
Senator Iraq Hussein Osama (bin Carlylye)
if you have money in Bank of America, I would take it out asap. Bank of America had training sessions for their managers a year ago in case of a bank run.
I think it is a truism that when a company builds a new headquarters, they are already on the way to bankruptcy.
That's why I like my Credit Union. Little offices in POS buildings, old beat-up desks, no marble, ugly Website, no strip-dancer tellers, no attitude, no frills...but gives me a checking account with a 6% APY.
This does not look anything remotely close to the Great Depression.
The lines are a lot longer. And there are complimentary water and sandwiches.
Chris,
Your $360,000 will be insured if your account is labeled as a POD (payable on death) account. If you have Your Mother, Sister & Brother as payable on your death your account will be insured at $300,000. And the FDIC has already said customers will receive %50 of their uninsured amount. So it looks as if you are out $30,000 as a maximum. But you may get that back if they sell the bank at decent price. Good Luck.
I am the original poster of the Great Depression comment. It has been funny to see how many fucking idiots don't get sarcasm.
I have ammo, water, canned food, fuel reserves and hard cash on hand. I suggest the rest of you do the same. Most indymac customers are not going to be able to pull funds until the coming Monday. Think people. And I am not being sarcastic now. Think of what you can do from here on out to just make sure that you have some supplies and protection you need. We are possibly (and what I mean by possibly is that it could happen so get prepared just in case) goinng to see a security meltdown that would make the LA riots look like a couple little girls playing house.
"That comment about WaMu building an expensive building as a reason why they won't go belly up is easily the dumbest comment in the history of this blog
Ever see the Astros play at ENRON field?
Unreal.
Think, people, think. And dig through a balance sheet every now and then."
Agreed Keith, in fact that is exactly WHY Washington Mutual should be shorted and it is going to fail. They continue to whistle past the graveyard, they just don't seem to realize that their grave is being prepared.
Stupid. If you are already in a deep hole - quit digging.
" Lost Cause said...
This does not look anything remotely close to the Great Depression.
The lines are a lot longer. And there are complimentary water and sandwiches.
July 15, 2008 9:48 AM"
Priceless. Hat tip to Lost Cause for brightening up my day!
"A fool and their money are soon parted"
SAN FRANCISCO (MarketWatch) -- Washington Mutual Inc. said late Monday that it significantly exceeds all required capital levels for "well capitalized" banks. The lender also said it has more than $40 billion of "excess liquidity," which usually refers to assets that can be sold for cash quickly without affecting prices much. WaMu raised $7.2 billion in capital earlier this year and noted on Monday that its tangible equity to total tangible assets ratio was 7.8% at the end of June. The company plans to report on its capital position and liquidity in more detail, as well as steps it's taking to work through the current environment, on a July 22 earnings conference call.
Now that IndyMac is the first of many banks to fail, I think we're going to see a lot more banks, not only close for the weekend, but close for good and go bankrupt. Rumors talk about 90+ banks, I think that's a little exaggerated, but very well possible. I would guesstimate around 30+ banks will close shop.
I'm an investor in the stock market and have started to build a position in Bank of America. One of the few 500 lb. gorillas left in the room. Every dip, I pick up more shares. I don't think there going anywhere, but you never know. Investments are all risky.
I never thought I would see this happen here in the USA, but here we are....let's all cross our fingers.
petes2cents.com
If the penalty isnt much, say 1% or less, I would transfer funds to the lowest risk fund within the group in Fidelity.
It's better than losing 1/3 of it.
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