Comment: Could this be the beginning of the "Bank Holiday " that was reported HERE FIRST and spread throughout the internet? (Colonial is rumored to have 346 branches)
Colonial, Alabama’s second-largest bank, is being closed by regulators today, the person said, becoming the largest U.S. bank failure of 2009 after an expansion into Florida saddled the lender with more than $1.7 billion in soured real-estate loans.
The FDIC usually waits until the close of business Friday; they must have had a slight problem with withdrawals......
Left unsaid is what's going to happen to the FDIC's deposit insurance fund on this one - my guess is that it will be ugly, as these guys were up to their necks in Florida on development projects that went bad. The "value" of that paper may be very close to zero; if the FDIC avoids doing one of their 40% loss deals I will be quite surprised.
A 40% loss on this one would, if my math is right, kill the rest of their insurance fund plus quite a bit and put the FDIC in the position of immediately needing to go hit up Treasury for more money.
That ought to be good for confidence, right?
Oh, there are two more on the "you're dead" list that I've been talking about for a while: CORUS and Guaranty, both of which have said they (as of last filing) have a negative Tier Capital Ratio, meaning that they are formally underwater and IMHO should have been seized months ago.
But don't worry, Treasury has an infinite credit card to keep funding the FDIC with, right?
"Heh Mr. Chinaman, can you spare an extra trillion - or three?"
Link Here
FDIC REPORT
SHOCKS, STRESSES, BREAKDOWNS, PLANS
Back to reality on US soil. Many reports have come to the effect that at the end of August, a financial breakdown is due, and a shutdown of US banks is planned. We await the trigger events with mystery and intrigue as overtones. Some on Wall Street, arrogant to the end, believe that widespread awareness prevents the actual unfolding of events. They are suffering from a terminal disease though, as they believe they are in control. They are not. The USGovt creditors are in control. The August Hat Trick Letter reports have identified five major factors pointing to a severely stressful period of time at the end of August and into September. The FDIC is scheduled to release its Second Quarter Report that could reveal up to 1000 banks expected to croak, surely enough to exhaust their rescue fund by between 20-fold and 100-fold. Tin cups are heading to the USCongress committees. The USGovt federal limit must be extended again, and Treasury Secy Geithner has requested a $12.1 trillion limit. That limit must be extended sometime again soon, like before next spring 2010. Maybe September 15th and March 15th could be declared Debt Limit Extension dates officially, and make them national holidays. The nation could celebrate debt. Details are in the report, but surely not a blow by blow outline, since a crystal ball is not an office feature.
1000 Banks Link
If you steal other postings like denninger you should at least give them a mention. Dork
ReplyDeleteNobody stole anything, do you not see the LINK? USE IT, everyone else figures it out.
ReplyDeleteWhen the banks pull their holiday crap and the protestors are waiving their banners, the lines are wrapping down the street .... we here can kick back and chuckle. Why? Because NO ONE here is crazy enough to have money in a bank, right?? I mean, the 1.5% interest is NOT worth it.
ReplyDeleteI was in my local bank on Wednesday and asked to be opted out of the Leisure Rewards (Chase, yeah) program. The bank manager sauntered over and proceeded to inform me that my money was not safe in my pocket and that once I lost a 20 dollar bill I would not get it back. I then told him that since his bank is overleveredged 50:1, the chances that Chase would lose my money were much higher. This sort of stunned him, so I continued a bit and told him that I believed that the banks and our governnmet were engaged in fraud on a massive scale and explained why. He turned and walked away without another word.
ReplyDeleteCan you believe that? The bank MANAGER, turned his back on a customer and walked away. I wasn't being even remotely rude or argumentative, and was smiling and being cordial.
Great one! I have had similar conversations with bank people myself.
ReplyDeleteErr uhm YES I mean NO I mean maybe yes because you know, no.
ReplyDeleteYou see the thing is , that is the thing which is is because it is a thing which is, is being, presently, here, at this time, this thing, err...yes. No.
They can ask for 600 billion more at the last OK they got from the feds, in that bill, Patriot Act Nine or whatever it was.
I don't know.
This doesn't align with August 22nd that way.
Even though the FDIC can tap tap into the printing press, that won't matter. Here is why:
ReplyDelete1. You have $75,000.00 in a bank that is FDIC insured.
2. Said bank goes on a permanent holiday, can't pay out all the people that make a run on it, or completely folds.
3. No problem, you have 'insurance' it doesn't matter if the bank closed its doors.
4. You file a claim with the FDIC for your $75k which requires the sign off of your bank, which is no longer around - but for the sake of argument lets assume you can actually file the proper paperwork, somehow.
5. It takes 5 to 7 months to process you claim - look it up yourself.
6. Because of the bank collapses, no more faith in the dollar, hyperinflation, etc, your $75k can now buy as many goods and services as $3k could have bought just six months ago.
People here - the FDIC was set up by the same Fed central bankers that are running the current frauds. Do you really think they care about you? The answer is no.
It takes a 100 trillion dollar Zimbabwe note to buy the same goods and services that a 10 billion dollar Zimbabwe note could buy just two months ago.
ReplyDeleteIn the late 1980s the Zimbabwe currency was very near equal to the US dollar.
The goal here is simple. Not only will the average American be turned into a peasant, but also many millionaires will be joining them.
How can you protect yourself? Get the hell of out of paper - ie dollars, stocks, etc. Buy any THING. The key word is THING. If your thing is canned food, gold or silver. Or a bicycle. Any THING. Just not the soon to be worthless FIAT dollars.
This message has been brought to you by someone that has nothing to gain by telling you this, nothing to profit. Someone who will never get a pat on the back or an 'atta boy.' Stop listening to the liars and criminals portrayed as heroes on your TV. Act.
Cake is a french euphamism for fecal matter.
ReplyDeleteSo a quick question for you guys. Say, for instance, you have that $75,000 and put it into gold. Then in a couple months or so you find something you want to buy...land, house, farming equip, whatever...but the dollar has not officially crashed yet and they're taking cash. Can you buy it with gold or do you have to go get it transfered into dollar bills again? Is there a loss or any kind of negative impact from switching to cash-gold-cash?
ReplyDeleteAny info appreciated; I'm just trying to wrap my head around this whole concept.
Well they dodged the bullet.
ReplyDeleteBB&T bought up the bank. FDIC is safe for now, but I wonder how many banks got offered the deal that BB&T got?
No that's not accurate. BB&T is getting a sweetheart deal whereby they get the positive assets, and the FDIC absorbs 60% of the losses, which amount to something like 24 billion dollars, still substantially more than the FDIC has in reserve. This means the FDIC will still have to go 'hat in hand' to the FED for more money, as Karl Denninger made clear in his article. A while ago, congress approved that the FDIC could 'borrow' up to 600 billion from the FED to keep from going under.
ReplyDeleteWill Mr. Germanyman go to China himself to ask for the three trillion?
ReplyDeleteAdmin, ignore that first poster. Quoting a portion of an article and linking to the remainder is common practice. Props for all the work you do!
ReplyDeleteAs for the gold question in buying something once you have converted your cash into gold, it really depends on whom you are buying the goods from. Gold is money. It's possible you may lose dollar value on the conversion of the gold into the goods you are buying *but* it's also possible you can receive a premium because you can't get gold the same way you can withdraw fiat currency from the bank.
ReplyDeleteI wouldn't move away from all fiat currency because it is the common means of transaction. What the thought is that it is important to have wealth in the form of gold/silver etc because no matter what the fiat currency of any country does, gold is still considered universally valuable and it retains its value because it is not linked to any specific currency.
The problem with gold is if *every* world currency collapses, its questionable as to how it will be valued.
Like it is explained in Zeitgeist Addendum, it is too bad we have a paper Ponzi monetary system. Anytime these Oligarch scumbags have control of the issuance of money there will never be freedom.
ReplyDeleteThey have successfully convinced Americans through marketing and media that your worth as a person should be measured by your material possessions, government parrot education, and appearance.
For the person wanting to know how hard it would be to go to gold and then back to fiat dollars if needed -
ReplyDeleteGo to Ampex and look for what the spread is between buy and sell. On large bars, it is very tight.
Also, look on Ebay and you will see that what you can buy in gold or silver can easily be resold, maybe even short term with a profit. Just look at what is selling via a completed listings search.
I have a friend to makes about $1k a month on the side buying and selling monster boxes of silver.
This is only possible because 75% of the people out to buy run to Ebay and they are not aware that anyone can set up an account and buy wholesale.
$946.40, the ask is $947.40
ReplyDeleteBuy/sell on melt is $1. Buying gold isn't like driving a new car off a lot. You can change your mind.
Granted the price can always go down on anything.
I prefer silver because the G/S ratios are way off. Silver has much better potential to appreciate at a faster rate value wise.
There's another reason why silver may sky rocket in the not too distant future but I shall refrain from mentioning it here, in order to breed conspiratorial outrage on the part of the readership.
ReplyDeleteLet's just say that "lead is bad for the environment"