8,500 U.S. banks; many will die soon

[tannybogus]

Ilargi: The rate of failure among the approximately 8500 US banks is about to start accelerating, probably in large and fast steps. The main reason for most of the smaller ones is their positions in commercial real estate and construction, where "The loss rates are just astronomical."

OK, very scared now, so what do I do?

Run, don’t walk, to your bank and get the funds you have clear of this mess before it gets any worse. The safe deposit box ... isn’t. There were rules during the Great Depression such that a treasury agent got to paw through any that were opened before the owner got to touch their stuff; gold, silver, and cash could easily be confiscated in an emergency.

http://www.dailykos.com/storyonly/2008/7/20/64928/7807/206/554077

FDIC stands for "Feel Developing Into Chaos." :crazy:

[CoffeeCat]

1. I would really like to know the truth...

I am so sick and tired of turning on the MSM and hearing, "Remain calm! All is well!"

I want to know the truth. Are banks safe?

I recently read that the IndyMac bail out ate up 5 percent of the FDIC's money. If that's true--it will take several more bank
failures to siphon up the FDIC's insurance capabilities...and then what? I'm no finance/banking expert, so I don't know if
this is true...or what.

Where do we go to find sound information that can help us weather this storm, or the bigger storm that's coming.

It's very difficult, because we have a sociopathic group of neocon thugs who are about to lose an election. I would put nothing
past them. These are very uncertain times. Will the election go smoothly and will the neocons just walk away...or not?
It's entirely possible that they would orchestrate some kind of disaster/event (economic or otherwise) to muck everything up.

Where can we go for accurate information on our money, the banks and everything else?

There must be some solid finance/banking experts--who aren't paid MSM shills--who can tell us what the reality is. And possibly
the reality isn't that bad. Or maybe we're rolling downhill into hell.

Anyone know where the sound sources are?

[Mr_Jefferson_24]

5. When corporate MSM tells you to remain calm...

...all is well, you can be dead certain all is not well. While remaining calm may be well advised, remaining complacent in our banking/economic crisis is most certainly not.

[paparush]

6. Saving IndyMac probably encumbered closer to 10% of FDIC's Resources

Update. The Wall Street Journal estimates that the FDIC used between $4 billion and $8 billion of its $53 billion deposit-insurance fund for the IndyMac bailout. FDIC insurance rates are likely to rise in order to replenish that fund for future bailouts.

http://www.bloggingstocks.com/2008/07/11/fdic-closes-indymac-second-biggest-bank-failure-in-history/

[MadrasT]

2. Scares the crap out of me

Most of my money is tied up in my 401K, and I've been sitting here for the last 6 months watching the account balance plummet.

I'm almost at the point where I want to liquidate it, take the hit on the penalty, and stuff it under the mattress or bury it in the basement. I can't bear the thought of all that money just "evaporating"...

[Dr.Phool]

4. Already did that.

My wife used to work for Key Bank, and her 401k there was all tied up in Key stock.

A couple of months ago, I read a list of 10 banks that were likely to fail soon. I told her to get it out, now. She's 59 1/2 now, so we didn't have to pay a penalty. Just 20% withholding tax.

They closed it out at the next days closing price, and a week later when we got the check, their stock had dropped 70 fucking percent! WHEW!!!!

The bad news is, it's now in a Wachovia account. The good news is it's FDIC insured.

[MadrasT]

14. Wow...

...great timing for you!!! "Whew" for sure.

I'm only 43... the whole thing makes my head want to explode.

My 401K is diversified in an assortment of Fidelity money market funds and bonds. Our employer contribution (what little it amounts to) is in cash - there's no company stock, as we're privately held. My head is telling me "leave it alone" and my gut is telling me "buy gold and bury it in the backyard".

My (currently unemployed) husband's retirement accounts are spread out other places, so it could be worse.

I'm a procrastinator by nature, so in reality, the 401K will probably just stay where it is.

(Did I mention about my head wanting to explode???)

[Olney Blue]

11. I'm losing money faster than I can make it!

[Locrian]

3. what the hell can you do?

I mean the worth of the $$ has ALREADY evaporated. EVERYONE is down about 40% from 2001 in US dollars. There should be people storming the castle but nobody gets it.

We are as fucked as fucked can be.

They are waiting for some shock event (read Naomi Klines "Shock Doctrine"). Then the crash and subsequent firesale / wholesale sell off of EVERYTHING to the rich will really take place. And we will all be their slaves. Look at what happened in S. America in the 1970s. It is happening here.

[paparush]

7. Locrain..just curious..ist that 40% figure based on the value of the dollar vs other currencies?

Factoring in inflation?

I'd like to use that number when I talk to people, but I'd like to understand it a little better.

Thanks!

[Patchuli]

10. Eat the rich! nt

[AwakeAtLast]

12. People would rather stand in a line than storm a castle.

Not as tiring. ;)

[Joanne98]

8. M&A! The same thing that happened in the 80's. Reagan 2.0. I hope everyone is HAPPY!

[MasonJar]

9. What good does stuffing it under the carpet do when the dollar itself will

be worth nothing? However, I still think that the greedy should fail; why should we bail them out again? It was only during Bush I that we bailed out the Savings and Loans while one of the Bush sons got away with theft. The same old same old!!!!!!

[crimsonblue]

13. yawn

next story. with a little less unfounded fear-mongering, perhaps?