Another good read from James Rawles at www.survivalblog.com : http://www.survivalblog.com/2008/06/tomorrows_headlines_a_nationwi.html Tomorrow's Headlines? -- A Nationwide Banking Panic Since September of 2007, I've been warning SurvivalBlog readers about the potential for bank failures and bank runs in the US, spawned by the unfolding global credit collapse. I am now raising my warning to multiple red flags. There are certainly some ominous signs. These include: New banking scrutiny--especially for investment banks. Plunging bank reserves. A few more bank failures this year than in a typical year. A record increase in "bank owned" (foreclosed) houses. New FDIC rules on assessing risks at major banks.To be ready for bank runs, the FDIC has even re-hired some former employees from its division of resolutions and receiverships. It is noteworthy that the US Federal Deposit Insurance Corporation (FDIC) will soon announce that it is raising the limit on individual depositor insurance from $100,000 to $250,000. Could it be that the FDIC executives are expecting more bank failures in the near future and they want to give everyone a warm fuzzy feeling--just to head off a potential banking panic? A key indicator is the level of bank reserves. Many US banks are now technically insolvent. These banks are on life support, courtesy of your tax dollars. Since February of 2008, I've been warning you about the "Non-Borrowed Reserves" figure at the Federal Reserve web site. Bank reserves are plummeting deep into negative numbers. When you look at the US banking industry in aggregate numbers, there are effectively no genuine reserves left. If the average bank depositor was aware of this, then there would already be huge bank runs in progress. But the Generally Dumb Public (GDP), is still blissfully ignorant, and continues to be lulled into a sense of complacency by the long-standing universal depositor's insurance backed by "the "full faith and credit" of the US government. Seeing the alarming negative numbers at the Fed's web site puts me at a loss for words. I don't know which metaphor to use: House of Cards? Ponzi Scheme? Collision Course? Whatever you choose to call it, be ready, folks! Again, I predict some widespread and very ugly bank failures and bank runs in the near future that will make last September's Northern Rock Bank debacle in England seem small, by comparison. It may take six months or more all of the FDIC claims to be paid out. Since ATMs and online banking will likely be shut down and virtually all bank instruments (including debit cards) will be disallowed or at least widely distrusted you will need plenty of greenback cash on hand to see to through a banking crisis. Withdraw some cash now, while you still can.
Indy Mac, and a few others coming, they say up to 150! Which ones will they save and which ones they let die. This is going to wipe out 50% of peoples investments that have amounts over 100,000. This will wipe out truckers and frieght haulers. Better make sure you are under on every account. If you use those things, called Banks, the place to save money right? taser1
Is their a list of banks on the chopping block this week I am changing banks but not really sure what that is going to help I guess...
Just when I thought it was starting to quiet down, I read this: The next mortgage mess? Increasingly, homeowners are seeing the fruit of their irresponsibility as mortgage defaults continue to rise. And although the subprime mortgage mess has begun to show signs of stabilizing, a bigger crisis may be on the horizon. From April 2007 to April 2008, the number of defaulted Alternative-A mortgages—those given to applicants with good credit scores but no proof of income or assets—increased fourfold to 12 percent. Meanwhile, defaults on prime mortgages doubled to 2.7 percent. The prognosis isn’t good. Thomas Atteberry, president of Los Angeles-based First Pacific Advisors, forewarned, “Subprime was the tip of the iceberg... Prime will be far bigger in its impact.” Echoing this, JP Morgan Chase Chairman and CEO James Dimon indicated he anticipates a tripling of prime mortgage losses for his bank in the months ahead. Last week, Fannie Mae and Freddie Mac, which together own or guarantee almost half of U.S. mortgages, announced they would increase payments to their mortgage companies, but just days later, Freddie Mac posted a second-quarter loss of $821 million and sister Fannie posted a loss of $2.3 billion. From the patriotpost.us
