Another huge bank is gone!  I wonder if this is what it felt like before the great depression.  Thankfully this time most people were insured by the FDIC

http://news.yahoo.com/s/ap/20080712/ap_on_bi_ge/indymac;_ylt=AhHph6zwj_aF9tp1q0MwlYys0NUE

 The Fed's finger in the dike doesn't look like it's going to stop this.

And yes, this is what it felt like before the great depression.  Did you know it took over a year to really sink into it?  It didn't all happen one Black Monday. 

"The economic crisis began with the stock market crash in October, nineteen twenty-nine. For the first year, the economy fell very slowly. But it dropped sharply in nineteen thirty-one and nineteen thirty-two. And by the end of nineteen thirty-two, the economy collapsed almost completely."

But we do have a lot more safety mechanisms in place....they've just never been tested before now.  Keep on eye on Fannie Mae and Freddy Mac.  If they start to sink we're toast.

cat:

Keep on eye on Fannie Mae and Freddy Mac.  If they start to sink we're toast.

They already announced that they are in trouble but the world bank offered to help

Redcin:

cat:

Keep on eye on Fannie Mae and Freddy Mac.  If they start to sink we're toast.

 

They already announced that they are in trouble but the world bank offered to help

I know, they have no choice but to add their own fingers in this dike 

And I'm still watching with my own fingers crossed that it works, but if some bad unexpected world event happens.....

P.S.   FDIC Venture Capitol fund of $52 Billion - $5 Billion to bail out IndyMac = $47 Billion left in the bankrun piggybank. 

 I used to be an Analyst for Indymac and was laid off last year. They where greedy and that is why it came down to this 

IdreamNpink:

They where greedy and that is why it came down to this 

Yes, and there will be no accountability at the top.  The greedy people who created this mess will still have their millions in bonuses as their punishment.  The banks are currently working to pass all this crap upstream to Fannie Mae and Freddy Mac, and when the government bails them out, we will be left paying for their bad decisions and greed.

Here's an interesting post I found on another blog about the banking and housing mess and how much of it is still hidden....

So I work for the enemy 8)

A couple quick obervations from what I'm seeing:

1. My company will avoid selling a foreclosed home we have taken at all costs. Many times we are choosing not even to foreclose because it is a waste of money. We just sit on it and twiddle our thumbs waiting for what I don't know. So we have a ton of bad debt but it doesn't "look" that way because we are avoiding that bad debt from hitting the books. If we do actually have a foreclosure we just play games with realtors, investors and homebuyers, we take their offers, and they wait 60 days, then counter offer, then maybe look at another offer...wait another 60 days, then counter offer. We are just blowing smoke so the big hit won't go on the books yet. It seems would would rather just be ok with not accepting payments anymore than having to take a home.

1. Another interesting observation. Do banks get any kind of federal money or assitance if they loaned $$ to people who are considered in "disaster areas"? The reason I ask is my company has had a bunch of loans where people aren't paying, and when I say not paying I mean not 1 cent in 15 months on 500k mortgages and we have done NOTHING. Just recently, some of these accounts have been placed under a "disaster relief" program due to the wild fires raging here in California. The catch is, when I am reviewing these accounts none of the addresses are even close to being in a fire areas. Yes, they may be in the same COUNTY where a fire is currently burning .....but 60 miles from actual flames. So now these loans maybe can be put back on the books as up to date because they are in a 'disater relief loans' and not "bad debt" anymore. Boy the banks never seem to halt with the tricks up their sleeves. I was wondering if anybody else has seen this.

FYI the property locations are in Salinas, Seaside, Gonzales, Greenfield, Soledad, and King City. The fire is burning in Big Sur! Same county but no fire risk.