US Bank Collapse?

[Still Growing]

Apolia,

Thanks .

[Apollia]

Originally Posted by Brutha

The currency trades one to one with the real dollar, so it's not in competition with the dollar.

Hmm... I guess it could be that simple. Good to know that they're probably not in danger of getting shut down, then.

If you want to do so you need some explanation of the stuff first.
Simply reading the text of the law doesn't tell you what's hidden in there if you aren't already familiar with it.
It's not a law that written with the intent that it's easy to understand.

It seems like hardly any law ever is, in this country...

Easy explanations of how it works are as a result often false.
The Wikipedia article gives a good overview as a first start.

Thanks!

Originally Posted by Still Growing

Apolia,

Thanks .

You're welcome.

Best wishes,
Apollia

[schola]

Originally Posted by Dan.Linehan

But... but...John McCain says the economy is strong! And John McCain never lies! Oh wait..


The AIG downgrade is big news. They need to raise $75B in capital to stay afloat.

Both candidates are out of touch on the economy. They don't have a clue. Obama's grand plan is more "stimulus" packages.
Barack Obama and Joe Biden: The Change We Need | Economy

[escapee]

Here is my plan to rescue the next ROME .

1 )Focus more on manufacturing instead of financial sectors. ( Ie : Boeing )

2 )Focus more on the development high yield agricultural sectors instead of financial sectors/Wall street.

3 )Pay better remuneration packages for engineers and farmers than the financial/wall street guys who reap profit from others' misery ( debt and inflation)

4 )Live an energy efficient lifestyle ( Mass transit, New urbanism & super energy efficient car ) to reduce the dependency on oil by XX%. At the moment, US ( with a mere 4 % of world population ) consumes a whooping 25% of exportable oil in the world. A big chunk of trade deficit comes from buying oil from the foreigners.

5 ) DRILL, BUILD NUKES and develop a basket of alternatives to guarantee future energy security or reduce foreign energy dependency.

6 ) Sound monetary policy to prevent another unsustainable "crack up boom".

Awaiting the approval of Steve Pavlina's congress

[Brutha]

1 )Focus more on manufacturing instead of financial sectors. ( Ie, Boeing )

What do you mean with the word 'focus'? Do you want that Boeing and Ie get subsidies?

[escapee]

What i meant is US needs to have more BOEING like manufacturing sectors that can compete with the rest of the world. ( ie = in example )

[Brutha]

What i meant is US needs to have more BOEING like manufacturing sectors that can compete with the rest of the world.

Having more stuff is always nice. The question is whether the government can do something that would result in having more companies like BOEING.
Subsidies are the prime way government does such things. Do you agree with giving those Subsidies?

[escapee]

Tax incentive or relief is another great way to spur higher growth and productivity in the sectors in question. (ie : Solar energy tax incentives program )

When you take less(money) from the people who produce stuffs that truly help the consumers, they will make more.

[mercuryrising]

Originally Posted by escapee

Here is my plan to rescue the next ROME .

1 )Focus more on manufacturing instead of financial sectors. ( Ie : Boeing )

2 )Focus more on the development high yield of agricultural sectors instead of financial sectors/Wall street.

3 )Pay better remuneration packages for engineers and farmers than the financial/wall street guys who reap profit from others' misery ( debt and inflation)

4 )Live an energy efficient lifestyle ( Mass transit, New urbanism & super energy efficient car ) to reduce the dependency on oil by XX%. At the moment, US ( with a mere 4 % of world population ) consumes a whooping 25% of exportable oil in the world. A big chunk of trade deficit comes from buying oil from the foreigners.

5 ) DRILL, BUILD NUKES and develop a basket of alternatives to guarantee future energy security or reduce foreign energy dependency.

6 ) Sound monetary policy to prevent another unsustainable "crack up boom".

Awaiting the approval of Steve Pavlina's congress

I'm with you on this. I work in manufacturing and business is booming. While real estate and it's speculation cronies are in the pits, the company I work for can't make parts fast enough. We had a 15% gain in profit last year. Not many that can boast about that.

A question we might want to consider is: why is it that one corporation (who deals strictly in "financial products") can threaten the entire global economic system if it were to fall? This is the case with AIG and it shows that the government is not doing its job of (as Teddy Roosevelt would say) trust-busting.

[Brutha]

Dan, now you know how they want to use the crisis. Getting 700$ billion as a blank check.

[ThoughtAddict]

Originally Posted by Brutha

Dan, now you know how they want to use the crisis. Getting 700$ billion as a blank check.

The lack of oversight in the bill is absolutely astonishing. $700 billion, in the hands of a single Bush appointee.

Why raid Fort Knox when you can convince panicked legislators to do it for you?

[mercuryrising]

Originally Posted by Brutha

Dan, now you know how they want to use the crisis. Getting 700$ billion as a blank check.

I thought the same thing when I read the newspaper yesterday.

[JorgeHTQH]

Just remember one thing... it's all being controlled. And they, the big boys, the 300 will turn it around soon, after they make their fortunes...

[Dan.Linehan]

WaMu becomes biggest bank to fail in US history


WaMu was #4 on my list of dead banks walking here.

[Dan.Linehan]

Too funny.

WaMu CEO that was hired 17 days ago got a $20m payoff.

Alan H. Fishman.

[Dan.Linehan]

$700B. is the bailout amount.


This is the list of Sedecca's "Dead Banks Walking" and their assets.

• Zions Bancorp (ZION)
  $45B.
  
  
• KeyCorp (KEY)
  $100B.
  
  
• Fifth Third Bank (FITB)
  $111B.
  
  
• Washington Mutual ***Already Failed***
  Assets = $330B. ***Sold for $1.9B. *** --> 5.7% of alleged value.
  
  
• National City
  $150B.
  
  
• Regions Financial
  $144B.
  
  
• General Motor/GMAC (GM)
  $5B.
  
  
• Ford/Ford Motor Credit Co. (F)
  $3B.
  
  
• Wachovia (WB)
  $783B.
  
  
• CIT Group (CIT)
  $90B.

Total, there are $1431B. in assets between these banks.


Considering a 10% liquidation rate (which seems high when we look at WaMu's 5.7% sell-off) - We have $1287B. remaining in bad debt. Money that can't be paid back.

These are just the ones Sedecca considers almost certain to fail. This is not including several other "risky" banks.

[Poster]

I had originally put this post in an other thread, but meant to put it here, so:

This may be the most informative and educational thread I've ever read. Thank you to all who have contributed to it and my edification. Please continue as I feel like I'm in the company of giants.

Dan, if I understand correctly, the total assets of the bank you listed earlier is actually debt they hold, is that correct? So, when they liquidate to lets say 10% of their value, what happens to the other 90%? What if I have a mortgage with one of these banks that fail, what happens to my mortgage? Can you point me to some sort of educational sites where I can catch up with some of you?

Sorry if I sound dumb here, but I'd rather expose my ignorance with the hope of learning.

Thanks again, everyone!

[ThoughtAddict]

Originally Posted by Dan.Linehan

[B][*]Washington Mutual ***Already Failed***
Assets = $330B. ***Sold for $1.9B. *** --> 5.7% of alleged value.

Ignores WaMu's liabilities per books of roughly $310B and the massive withdrawal on the commercial banking side. To say "5.7% of value" is just dishonest. JPM got a huge bargain, but not that huge.

[Winter]

Originally Posted by Poster

I had originally put this post in an other thread, but meant to put it here, so:

This may be the most informative and educational thread I've ever read. Thank you to all who have contributed to it and my edification. Please continue as I feel like I'm in the company of giants.

Dan, if I understand correctly, the total assets of the bank you listed earlier is actually debt they hold, is that correct? So, when they liquidate to lets say 10% of their value, what happens to the other 90%? What if I have a mortgage with one of these banks that fail, what happens to my mortgage? Can you point me to some sort of educational sites where I can catch up with some of you?

Sorry if I sound dumb here, but I'd rather expose my ignorance with the hope of learning.

Thanks again, everyone!

No one can do anything to you if you continue to pay your mortgage consistent with the terms of you mortgage contract even if the bank you owe it to goes belly-up. The bank or lending institution that you owe it to may collapse or be taken over but that just means that your check goes to someone else now. However, if you get in trouble on your payments and want to renegotiate your payments or re-finance, there may be no one left there who can help you , or on the other hand, there may be a new institution with more options and some government help. That part is unknown at this point and is being worked out in Congress.

Winter

[Dan.Linehan]

It's not over yet.

YouTube - Marc Faber: US will go bankrupt


Marc Faber says longterm US treasury bonds should have "junk" ratings. Track record: predicting meltdown since 2005, predicted Asian crisis of 97-98.