July 14, 2008

HousingPANIC URGENT WARNING TO AMERICANS - GET YOUR MONEY OUT OF THE BANKS NOW


* Do NOT keep any money beyond FDIC limits in ANY bank

* Assume your bank will fail - do your own due diligence. Ask questions. Get it in writing.

* Are your mutual funds protected? Your trading accounts? Your CD's? Your money markets? Your 401k's? Know who has your money, and if it's protected

* Especially avoid banks exposed to Subprime, Alt-A and Option ARM lending

* Avoid all banks with concentrations in California, Florida, Nevada and Arizona

* Get ready for the next implosion - construction loans going bad in droves

* Tell your friends and family. Last one out's a rotten egg.

* You ain't ever seen anything like this folks. Unless your were alive in 1929.

* Get popcorn. Lots and lots of popcorn.

Many more US bank failures likely after IndyMac

NEW YORK, July 13 (Reuters) - U.S. banks may fail in far greater numbers following the collapse of the big mortgage lender IndyMac Bancorp Inc, straining a financial system seeking stability after years of lending excesses.

More than 300 banks could fail in the next three years, said RBC Capital Markets analyst Gerard Cassidy, who had in February estimated no more than 150.

64 comments:

Anonymous said...

NEW YORK, July 13 (Reuters) - U.S. banks may fail in far greater numbers following the collapse of the big mortgage lender IndyMac Bancorp Inc, straining a financial system seeking stability after years of lending excesses.
More than 300 banks could fail in the next three years, said RBC Capital Markets analyst Gerard Cassidy, who had in February estimated no more than 150.
Banks face pressure as credit losses once concentrated in subprime mortgages spread to other home loans and debt once-thought safe. This has also led to investor worries about the stability of mortgage finance companies Fannie Mae and Freddie Mac; IndyMac is not related to either.
While analysts declined to say which banks will fail next, several smaller lenders and one large one, Washington Mutual Inc, appear already to have elevated levels of soured loans, relative to their sizes.

http://www.guardian.co.uk/business/feedarticle/7649271

magic 8 ball said...

...best clear on out the back.

Anonymous said...

Goodbye banks and bankers don't let the door hit you on the way out

John K. said...

Get your money not only out of the bank, but out of the Dollar as well. The Feds are printing electronic money by the Gazillions and the Dollar is being destroyed.

The safest place to keep your money is in the only legal Constitutional money, Gold and Silver! Buy physical, take possession, and hide it around the house. Don't trust a safety confiscation, I mean deposit box.

michael said...

anyone have any info on Chevy Chase Bank?

Anonymous said...

Finally pulled the trigger on some Gold and Silver.

And yeah, I might lose some money on it, let's hope that I do.

Anonymous said...

Hmmm, but I thought the average HPer had $2 million in the bank. That's a lot of accounts to manage!

ING direct is sound.

Isn't banks failing in mass considered as deflationary?

-Mike

Balls in a vice said...

FDIC Rehires Retired Staff
Feb '08


Remember, we all saw it coming...

http://online.wsj.com/article_email/SB120398607404892133-lMyQjAxMDI4MDIzNzkyODc2Wj.html

Anonymous said...

Time to buy tickets for the final flight out of the former United States of America soon to be MexAmeriCanada.

Anonymous said...

What do mutual funds, trading accounts, money markets, funds and 401(k)s have to do with the FDIC? None of those accounts or instruments are insured.

Wow. Such ignorance.

Anonymous said...

In the coming months (weeks?) we can expect a tersely-worded White House press release stating that due to the hostile nature of 'shafted' taxpayers, Bush administration 'officials' will no longer appear in public, but will issue governmental 'directives' from an undisclosed palace in Dubai...

The Musings of Strawman Munny said...

What about T.Rowe Price? Are they in OK shape? That's where my IRA's are invested.

drew said...

WaMu, FTW! That'll teach those bastards for their ATM eating my debit card.

eric in vegas said...

Washington Mutual is a Senate rumor away from getting run on.

keith said...

If you have money sitting in 'safe' places - like your online broker or your mutual fund manager, you may want to do a little digging to see if it's 'safe'.

Hint - money markets were big investors in mortgage-backed paper. Also look at your CD's - are they insured? fully? Only if they're below the FDIC limits.

You might want to start here. Wow, such ignorance. Glad we could help.

http://www.fdic.gov/consumers/consumer/information/fdiciorn.html

What Is Not Insured?

Increasingly, institutions are also offering consumers a broad array of investment products that are not deposits, such as mutual funds, annuities, life insurance policies, stocks and bonds. Unlike the traditional checking or savings account, however, these non-deposit investment products are not insured by the FDIC.

MrBill said...

How do you know if your mutual funds and 401k are protected?

Res Ipsa Loquator said...

add to intro text:

NEVER TRUST the REIC or MSM.

They will ALWAYS LIE.

Res Ipsa Loquator

LibVet said...

This is sort of fun. Everyone in the family thinks I'm a genius. LOL.

I bought CD's under the limits but I still have some dough (less than 100k) in my Merrill Lynch Cash Management Account.

I THINK the SIPC insures that. I hate to pull it out, it's bringing in 4.8%. Anyone know if I am wrong here? Am I OK depending on the SIPC?

Thanks Keith. Thanks to all the smart folk here too.

The Housing Bubble Ate My Balls said...

IndyMac borrowers line up in Calif. to withdraw their cash.

http://tinyurl.com/6chrso

"John Bovenzi, the FDIC's chief operating officer, talked with some customers and tried to reassure them as they waited for the doors to open. "This bank is as safe and as sound as any bank in the country right now," he told one depositor."

RIIIIIGGGGHHHHTTTTT......

Peter Schiff kicks ass once again... said...

Peter Schiff stomps on the terra once again...

It must be hard for Schiff to debate idiots each and every interview. Where do they get these Bush-shills?

They should next get Connie the Monster or The Caveman and his douche talking head wife...

Better yet, get Dodd and Greenspan out of their bunkers to face the nation.

http://youtube.com/watch?v=u3auIhXJEDw

If you have any doubts about keeping your money in USBanks watch the video and make your decisions.

caleb said...

Eric: Too late!

http://mrmortgage.ml-implode.com/2008/07/14/physical-run-on-wamu-happening-this-minute/

marching to mars said...

The Dixie Chicks were right.

Anonymous said...

I say we create an HP Bank! What better place to keep your money than with fellow HP'ers.

The only rule we should put into allowing those to become members of the HP bank would be you can't own a home, you must be a renter!

Anonymous said...

"If you have money sitting in 'safe' places - like your online broker or your mutual fund manager, you may want to do a little digging to see if it's 'safe'."

None of them are safe. Never were. Account balances are protected to 250K, but that doesn't stop any of them from saying the funds were invested in CDOs that are nopw worthless. At least a savings account is guaranteed to never go down, and the full amount up to 100K is guaranteed by the FDIC.

Then you still have the ignoramus wondering "How do you know if your mutual funds and 401k are protected?" as if some actually are. I recall the fine print reads something like "Investments may go down in value".

No wonder you have "saved" so many people, Keith. They are pretty much at the point in life where they open their first bank account. A bunch of spoiled-brat kids that actually think they have 401(k)s guaranteed by the FDIC.

LOL

Anonymous said...

let's get some advice here...as some of you said before - banks are FDIC insured - so it you are under $100k you should be fine...I am into cd's and I watch carefully. Money Markets are not insured (moved out of those last summer) and your (and mine 401k's) are not protected as in my case all stocks and mutual funds. I will take a risk there because I dollar cost average...

I use veribank.com and bauerfinancial.com for bank ratings, been doing so for years and think they are good.

Apparently its illegal to put cash in a safe deposit box at the bank as well.

Banks scare me, but if I stay under the limit, and make a goos"guess" , then I might be covered. There is nothing in the market that I want to lose my shirt on.

I am too late for silver and gold. Although I have gold from a few years ago. What do I with my cash now? Buy a house - ha!

I think I have to stay put where I am at....unless someone has a good suggestion for me...

Anonymous said...

Fugget, I'm just gonna spend it all, or maybe invest in real estate. Wait a minute, isn't that what they want us to do?

Forkhead said...
This comment has been removed by the author.
Anonymous said...

well, its true about the cash in Money Markets being at risk, if its in a private institution. But, if you own stocks, I believe there is no risk to losing them, you own them regardless of what brokerage you are with, or if they are in business. But, correct me if I am wrong on that in some way??

Anonymous said...

Time to get your cash out folks. FDIC insurance? Why take a chance? I'm getting mine the hell out of there and leaving just enough to cover 30 days of expenses. Oh, I'll miss out on 1% interest? Say it ain't so.

Anonymous said...

Panic time, sec cracking down on rumors!

http://online.wsj.com/article/SB121599785046349851.html?mod=googlenews_wsj

Anonymous said...

UPDATE UPDATE UPDATE UPDATE UPDATE

Today IS IMPORTANT!

UPDATE UPDATE UPDATE UPDATE UPDATE

UPDATE UPDATE UPDATE UPDATE UPDATE

UPDATE UPDATE UPDATE UPDATE

Let the games begin said...

I guess the Northern Rock footage we saw earlier in the year, is now going to be matched by the line outside of Indymac this morning. People were staying in Hotels across the street, just so they could get in line to withdraw what is left of their money.

Ah, how quickly the national Psych changes. American's used to be lining up for hours outside of the Apple Store to part with $600.00 for an IPhone, or lining up to be the next American Idol. I guess now reality is setting in with a thump, and now the lines will be at Banks, unemployment lines, soup kitchens and health care facilities.

My what one credit crunch, and a little media fueled panic can accomplish.....

edd said...

"Assume your bank will fail."

Keith, the FBI and FDIC
want to talk to you.

Burn a Joint said...

Keith: Please be careful. Chris Cox has a boner for truth-tellers.

Anonymous said...

The number one problem is that our banking and financial community just doesn't believe what is happeing! They are either in total shock or total denial.

They Fed thinks they can solve this with more bail outs making the public think every thing is just fine!

When a big bank like IMB goes down this is no small thing!

Let all of them fail just like IMB! It is the only solution for a mismanaged financial institution.

Anonymous said...

FDR strikes from the grave again

First it was FSLIC
Then it was Fannie and Freddie
Next will be the FDIC
Then the biggest government ponzi scheme of all - Social inSecurity

FDR = Fucking Dumb Roosevelt

JC said...

Good way to start a panic. There are many banks in trouble but clearly, some banks were much more responsible than others.

I feel safe with Wells Fargo. They were the first to pull back on consumer mortgage lending and they were not stupidly aggressive like their competitors when it came to rates and loan programs.

Pete said...

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

Anonymous said...

I too like Wells Fargo. I worked with them and I believe they can weather the storm!

Anonymous said...

I want put 80% of my money in euros CDs (from everbank.com). Are these safe? Is it a good idea?

Anonymous said...

Funny Keith, you and Peter Schiff thought that we were headed towards hyperinflation. Yet Indymac just collapsed because they have no money, and you're telling people to get their money out of certain banks, admit it MISH IS RIGHT WER'RE HEADE TOWARDS DEFLATION!

keith said...

Last Anon got my position wrong - HP'ers know I believed inflation would roar in consumables, while deflation would take hold with assets

It's the worst of both worlds - everything's getting more expensive while people lose their wealth

bank dick said...

"Yet Indymac just collapsed because they have no money"

No, due to falling asset values they were undercapitalized and failed to meet the minimum requirements of their charter. When the public panicked and withdrew deposits it further eroded their capital and the situation became hopeless.

Deflation is a decline in the money supply not necessarily a decline in available credit, although the two may be related. Our broad money supply continues to grow at annualized rates over 12% and that is the best indicator of inflation.

Anonymous said...

Speaking of ignorance.....

FYI investments ARE insured.

It's called SIPC..use the intertubes and edumacate yourself. Also alot of clearing firms also provide an extra layer of protection and insurance for your investments.

Dummy of the hour post said...

" Anonymous said...
I too like Wells Fargo. I worked with them and I believe they can weather the storm!"

Har Har Har! LOL!

You deserve to be poor. There is a nice cozy little cell waiting for you in Indiana, jerkoff. It's called a FEMA Camp.

IDIOT. How did you ever learn how to post a comment?

EU11 said...

---------------------------
Anonymous said...
I want put 80% of my money in euros CDs (from everbank.com). Are these safe? Is it a good idea?
---------------------------

Euros rigth now are overvaluated and going down soon. to late for that move. gold seems better (silver platinium etc)

What a mess said...

"John Bovenzi, the FDIC's chief operating officer, talked with some customers and tried to reassure them as they waited for the doors to open. "This bank is as safe and as sound as any bank in the country right now," he told one depositor."

He's probably not lying on that point - it is as safe as any other bank in the country right now. No bank is safe right now. When the FDIC has a tiny fraction of the funds necessary to bail out depositors if WaMu and National City go under....

My dad used to tell me about people putting money under the mattress. I wonder if we are going to see that again.??? I hope not, but none the less, this is history in the making folks.

Dixon Ticonderoga said...

The Housing Bubble Ate My Balls said...
IndyMac borrowers line up in Calif. to withdraw their cash.

http://tinyurl.com/6chrso

"John Bovenzi, the FDIC's chief operating officer, talked with some customers and tried to reassure them as they waited for the doors to open. "This bank is as safe and as sound as any bank in the country right now," he told one depositor."

RIIIIIGGGGHHHHTTTTT......


Reread that statemant slowly. He told the truth. "This bank" Indymac "is as safe and as sound," ie. is as f*cked "as any bank in the country right now."

Be very afraid when bureaucrats start telling the truth even if it is hidden in astatement that would sound positive to most people.

Anonymous said...

"...Har Har Har! LOL!

You deserve to be poor...jerkoff...
IDIOT."


Keith: do we really need to see every rude knuckle-dragger indulge themselves?

The blog could be better with just a little discretion.

Thank you.

foreclose_me said...

SIPC doesn't have any backing by USGov. FDIC at least has the illusion of it. SIPC has $1B. From their site:
It is important to understand that SIPC is not the securities world equivalent of FDIC–the Federal Deposit Insurance Corporation. Congress specifically considered creating a Federal Broker-Dealer Insurance Corporation, but lawmakers wisely concluded that such a designation would be both misleading and out of step in the risk-based investment marketplace that is so different from the world of banking.

Anonymous said...

There are other areas. Im concerned about national city bank with its exposure to cleveland.

And Also there is Wachovia with its exposure to option-ARMS.

Anonymous said...

anon @ 11:08,

SIPC has $1 billion in reserve, that'll really go a long way...

Anonymous said...

The government will be able to pay us all off, bailout what needs it, fund limitless war, Social Security, Medicare....

It's just that milk will be $20/gallon(if we're lucky; maybe $50.)

Refuse to buy overpriced said...

"Finally pulled the trigger on some Gold and Silver.

And yeah, I might lose some money on it, let's hope that I do."

Amen, I hope I lose money on gold!

Anonymous said...

"FYI investments ARE insured..."

The SIPC does not insure investments. What it will do in the case of the failure of an SIPC licensed broker is try and replace customers stocks, bonds, and cash -- but not money market funds, futures, or forex.

k.w. - Southern Ca. said...

This whole crisis will be continually down-played to curb panic - but people are now seeing the writing "clearly" on the wall.

We'll have continual bank failures into 2009, and no one really knows just how many will fail.

Anonymous said...

I moved some money into wf last weekend. They purchased a 20% share of wamu...

Anonymous said...

Holy shit Qweeerino relax dude. Banks have failed before. They will fail again. Indymac is the ***SECOND*** largest bank to fail. The largest ever failed in 1984.

And the earth kept on spinning afterwards.

Anonymous said...

Anon 8:59pm,

I checked out bauerfinancial.com. I'm not sure if that report is all that solid, they rated WaMu 3 to 3.5 stars... You believe that?

-Mike

Anonymous said...

"FYI investments ARE insured..."

To the posters who beat me to the punch (I'm Wow. Such ignorance, BTW), thanks.

I really enjoy coming to this blog and getting told to get an education by people who make it up as they go along.

Anonymous said...

Diversification
is the key:
http://www.stockmania.com

Anonymous said...

Keith: do we really need to see every rude knuckle-dragger indulge themselves?

The blog could be better with just a little discretion.


Tough it up, sissy (I said it like Blade). If you want sissy talk, go hang out at Ben's Boring Blog.

Anonymous said...

Hi, do you know if citibank is sure?
I am quite worry now.
And what can you do with your dollars at home... ?
thanks for info

Oops I crapped my pants said...

I loooove popcorn, but I'm not supposed to eat it. It's really not healthy. Maybe a diet coke and one of those mini-pizzas. But you may need to wear one of the Depends adult diapers. This could get scary fast.