First Major Bank Failed Today - Proof that Recession is Real?

and I tend to agree with Buffet more than a technical definition used by the government
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The term "Recession" is a technical term, used in the academic discipline of economics to describe a particular set of economic circumstances. It is well defined, and has been used and accepted for decades.

Buffet is attempting to redefine the term. He is not entilted to do so any more than he would be to redefine the term "Hurricane" so that it could be used to describe a mere tropical storm with much lower wind speeds, no clearly defined eye, no cyclic rotation, etc.

Haven't we, as gun owners, had enough of people twisting well defined technical terms to promote an agenda?
 
Let the banks get what's coming to them. They don't deserve a dime of my tax money to cover their butts.
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Then what about Fannie May and Freddie Mac?? If the government stands aside and lets them both go under, we could potentially see scores of banks being taken over by the FDIC. What will that then cost us?

Or are you saying that you want the FDIC system thrown out, with no federal insurance available to account holders at banks that fail?

Without Fannie May and Freddie Mac available, analysts believe that home mortgage rates would skyrocket in response. That would truly be disastrous for the housing market.

See these news stories:

http://www.statesman.com/news/content/news/stories/nation/07/13/0713fannierates.html

http://www.marketwatch.com/news/sto...2D9A-A0EE-4F40-B01A-A28C151EDD4C}&dist=msr_37

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So where exactly did the $500b go? It didn't just disappear. Who has all the money?
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Actually, it is only $500 million that account holders at IndyMac Bank are said to have lost, as that much was held in the bank above the FDIC insured limit. But the cost to the FDIC system is said to be around $5 Billion, or about 10% of the entire system's reserve for bank failures.

Tonight's NBC Evening news showed IndyMac clients at various branches today, trying to withdraw their money. But the banks had all been closed for business, by the federal regulators on the scene. These people have been caught with their pants down, unfortunately.

Do you have any bank accounts with more than $100,000 in them?? If so, you could potentially lose money too.

And what if the current reserve gets all used up, by further bank failures? Does the Federal Government just then print more money, to cover the deposit insurance system? The government has to at the very least keep the FDIC system afloat, no?

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Is this not proof that the current economic times are bad?
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Given the poor lending practices of considerable numbers of institutions such as Country Wide, essentially making loans to people that were above and beyond what they could expect people to pay back if there was any shortcoming, this isn't a surprise.

Also, numerous institutions like IndyMac went very heavy on mortgage loans in light of the previously booming housing market. The problem there is that they over-extended themselves...essentially making bad financial decisions. Companies fail when they make bad financial decisions.

Maybe you are too young to remember the S&L failures in the late 80s and early 90s, Lance, but times were not economically all that bad then...unless you were in the S&L.

Times are getting tougher right now and business that are on edge will fail. Most are on edge for bad business decisions and have only survived thusfar because of living off of the glut of the economy. They were getting by in spite of their poor practices. The glut is gone right now.
 
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Yes, this is end times.

Next Tuesday every bank in the United States will fail simultaneously as the Council on Foreign Relations and the Federal Reserve (controlled by the cabal of 13 Jews, don't you know) finally enact their master plan for taking over the United States and enslaving us all.

Or so I've heard from reliable sources on the internet.
 
Mike Irwin: (controlled by the cabal of 13 Jews, don't you know) finally enact their master plan for taking over the United States and enslaving us all.
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I heard that is was the Illuminati and the Free Masons!
 
I watched a show this weekend about how the freemasons plastered the number 13 all over the one dollar bill as a secret code of theirs. All this time I thought it was because there were 13 colonies but evidently I was wrong.
 
If you do not believe that we are heading into a recession or already in a small one then you need to pick a newspaper instead of a gun rag. There is evidence in every market, in every state and every country. With globalization as evident as it is right now, almost everyone in the world is having a tough time.

I am sure that rising costs of everything affects most people, rising fuel in particular has hit me very badly. Just check out my sig and you will understand.

As an economist and an investor I can honestly say that in my humble opinion hard times are here and might be here for a while. That being said, I am not worried, everything works out in the end, and even though the dollar is on its way out as the international standard for currency I am sure we will be fine.

YK
 
I always thought that if a bank failed due to giving billions in bad loans, it was the bank's fault. This bank was passing out mortgages without even requiring proof of having a job.

Speaking of which, my nephew, a 21 year old convicted felon, non-married father of 2, without employment, managed to aquire a $120,000 home mortgage. Lasted every bit of three months before they realized he could not make the payments.
 
And, where's the evidence that the FDIC is unable to handle the current situation?
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Do some research on the FDIC and you will see it has been watered down so far in the last thirty years it can not handle more than one or two large banks failing. Almost all the reserve funds have been lent to government projects. The insurance is payable over 99 years anyways. FDIC is nothing more than a shell game.

People standing in line to but Iphones? Of course, anyone invested elsewhere is doing great right now (China, EU, even Africa). Banks are dying to do business with anyone who has decent credit.

The numbers should be out very quickly indicating we are officially in a recession.

Traditionally a recession is absorbed by other economies. Right now all the economies are linked very closely. B/c they are so linked the system itself is robust against failures, but if the US economy plummets so will the others to a greater degree than even in '29. Buy your dream SHTF gun now. WCS dems pass AWB in next election and you sell it for twice what you paid.
 
I always thought that if a bank failed due to giving billions in bad loans, it was the bank's fault. This bank was passing out mortgages without even requiring proof of having a job.

Speaking of which, my nephew, a 21 year old convicted felon, non-married father of 2, without employment, managed to aquire a $120,000 home mortgage. Lasted every bit of three months before they realized he could not make the payments.
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It used to be that way until the discrimination lawsuits entered the picture then banks had to loan to about anyone and the government backed it. It is not always the banks fault but some went way overboard and fell to some slick talking developeers. I blame much of in on the TV shows like "Flip this house" where everyone decided they could get rich in the real estate market.

If you remember back a couple of decades when we went through the same $#!+ with the farm loans. Prices were rising so fast that 150% loans were common to about anyone and they figured that if this joker couldn't pay then they could still sell it an make a profit. A few of my relatives got caught up in that.
 
and the government backed it
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Even Senator Charles (don't make risky loans) Schumer:

Senator Schumer's Senate website:
FOR IMMEDIATE RELEASE: June 28, 2004

SCHUMER: LONG ISLAND MIDDLE CLASS HOUSING SHORTAGES REACHING CRISIS LEVELS - UNVEILS MAJOR NEW FEDERAL PLAN FOR EXPANSION

Schumer announces dramatic $300 million expansion of oversubscribed Fannie Mae initiative letting middle class families purchase homes with little or no down payment at Long Island Housing Partnership on Monday

Schumer Plan also starts conversion of 1/3 of vacant federal property on LI for middle-class housing; new bill to also make Feds insure zero-down-payment mortgages for first-time home buyers.
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"The term "Recession" is a technical term, used in the academic discipline of economics to describe a particular set of economic circumstances. It is well defined, and has been used and accepted for decades.

Buffet is attempting to redefine the term. He is not entilted to do so any more than he would be to redefine the term "Hurricane" so that it could be used to describe a mere tropical storm with much lower wind speeds, no clearly defined eye, no cyclic rotation, etc.

Haven't we, as gun owners, had enough of people twisting well defined technical terms to promote an agenda?"

Well said.
 
President Bush Declares Emergency: Calls on Congress to Rescue Mortgage Giants

The current Mortgage industry crisis is so minor and non critical that both President Bush and the Federal Reserve made emergency announcements today ( on a Sunday ) in an effort to stop panic in the stock market and a run on banks on Monday.

He called on Congress to pass sweeping legislation to pour Billions of Federal dollars into both Fannie May and Freddie Mac, to prevent them from failing. Some officials who have been briefed on the Bush plan say that Congress will be asked to extend their credit line by a measly $300 Billion dollars!!! Such a tiny amount of money will surely not adversely affect taxpayers or the US economy in any way at all, don't you think??

Meanwhile, Federal regulators have stated that there are at least 90 banks on a list that they have that are currently in danger of failing. The really scary thing is that they admit that IndyMac was not even on their list of at risk banks.

Here are some new news reports from today:

http://www.nytimes.com/2008/07/14/washington/14fannie.html?hp

http://www.marketwatch.com/news/sto...-4F01-AF6F-F1D7591E4526&dist=SecMostCommented

http://uk.reuters.com/article/UKNews1/idUKL1314902520080714

I'm sorry guys, but these are truly unprecedented developments.

Is perhaps the only thing that we have to fear, is FEAR itself? What if everyone begins to panic??

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Personally, I am against the Gooberment bailing out ANY company including the Chrysler bail out of years ago. If a Company fails to meet the demands or wants of the public, let them fold up. I don't remember anyone wanting to bail out the old Packard or Studebaker companies way back.
FDIC insures depositors to a point. If your bank lends out money to questionable borrowers, well shame on them, don't use MY tax dollars to bail out greedy and stupid banks. Maybe banks would be more careful in the future if no bail out was ever going to happen, maybe depositors would look into the banks history and operating methods before putting THEIR money in them We are now going to "bail" out homeowners that through their own stupidity or greed bought into bad mortgages, again, why should MY TAX dollars bail them out? I am tired of trying to FIX the world and the idiots in it with my tax dollars.
 
Several years ago my daughter was looking for a house to buy. After a good bit of searching she found a very nice one in a nice neighborhood and all that stuff. The city had one of these special housing supplements going so that she could get a subsidized mortgage for it making it a great deal. Everything was going fine until someone in the city said wait a minute that neighborhood is too nice for this program, it is only for slums! We were able to get that location OK'ed but then she had to get her company wait two weeks to give her a raise so that she would still be under the salary cap. So instead of wanting people that could afford the houses to get them they were targeting those that couldn't afford them. And we wonder why there are so many foreclosures.
 
Do you have any bank accounts with more than $100,000 in them?? If so, you could potentially lose money too
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Very good advice. I know a guy who lost $600,000 when the Penn Square bank in OK City flopped in the 80s. He still cannot give you an explanation why he had $600,000 in excess of FDIC insurance limits.
 
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