famous last words
July 13, 2008 by Betmo
‘IndyMac, with assets of $32 billion and deposits of $19 billion, is the fifth bank to fail this year. Between 2005 and 2007, only three banks failed. And in the past 15 years, the FDIC has taken over 127 banks with combined assets of $22 billion, according to FDIC records.’
anyone else know that this was going on? we knew about the housing bubble and whatnot- but putting two and two together- apparently, not our strong suit. especially, with the fourth estate being a fifth column.
“There will be increased failures, but it will be within range of what we can handle,” Bair said. “People should not worry.”
ok- that makes me feel a helluva lot safer. why should we trust you when you are the people who got us into this mess in the first place?
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This house of cards is about to come crashing down. Freddie Mac & Fannie Mae- the Government mortgage entities are in big trouble.
One economist said this is 100 times worse than the Bear-Sterns failure & the IndyMac meltdown.
Freddie Mac is aiming to sell off $US3 billion ($3.1bn) in securities tomorrow following last week’s meltdown, in a potentially decisive move to heal shattered investor confidence.
The two government-chartered, shareholder-owned giants underpin some $US5 trillion in home loans, and the meltdown in their shares last week raised fears of a worsening of the credit crunch.
The prediction that a big failure of these 2 entities will take a solid 5 years to recover.
To protect them from liquidity problems, Mr Paulson said the two organisations would get a bigger credit line “temporarily”. He did not give details on the amount of the credit line or terms.
And to ensure Fannie and Freddie can do their jobs, the Treasury Department would get temporary authority to buy their shares should that be necessary, Mr Paulson said.
“We are grateful for the leadership of Secretary Paulson and (Fed) Chairman (Ben) Bernanke,” Fannie Mae chief executive officer and president Daniel Mudd said.
He urged Congress to deliver “swift passage of the new legislative proposals, as well as the important initiatives underway to assist homeowners and help restore stability to the housing market”.
“We continue to hold more than adequate capital reserves and maintain access to liquidity from the capital markets,” Mr Mudd said.
“Given the market turmoil, having options to access provisional sources of liquidity if needed will help to strengthen overall confidence in the market.
Here is the link to the article.
http://www.news.com.au/heraldsun/story/0,21985,24015628-23109,00.html
The US Treasury is having to bail out the huge Government mortgage– they are bending & creating new rules to try to save themsleves.
Bush-o-nomics sure are both interesting & exciting….
The bankers name is *Mudd*…. how ironic is that?
frans last blog post..No Picnic
There are other banks on the brink of failing as well as Paulson announcing today, on a Sunday, that the Treasury and the Fed will prop up Frannie and Freddie.
Its all right though..don’t worry, be happy..YEAH RIGHT ASSHOLES!!!
And Phil Gramm had the balls to say this economy is fine and its all in ‘our heads’.