KOTCT
Castle Courtyard => General Discussion / Questions => Topic started by: scottishmoney on July 15, 2008, 01:05:15 AM
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Gold over $980/oz, dollar now down to $1.60 to the €1, oil at $146.00 and the FDIC has $53 Billion for reserves for bank failures and Indymac itself may cost $8 Billion, and the analysis suggests anywhere from 90-150 more banks failing.... Do the math, if that happens, it ain't going to be good for depositors.
Right now the banks not looking good are BankUnited, National City, Washington Mutual are among the larger institutions on the "watch list".
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I've been watching this mess unfold for the past decade, from the predictable melt-down of the "New Economy's" worthless dot-com stocks, followed by the Fed's gutter-level prime rate bail-out of Wall St (by two successive Fed chairmen). Incredibly, that money was re-packaged into the most ill-conceived and convoluted "investments" as to make risk-assessment nearly impossible—but rate it "AAA" anyway, nice.
Yale's Robert Shiller deserves credit for calling this fiasco (http://www.amazon.com/Irrational-Exuberance-Robert-J-Shiller/dp/0691123357) early on, but few were listening. That's because "money was to be made", from the wannabe real estate "investor" flipping condos, to major banks selling poorly securitized mortgages, with the media shills hyping such activity to their own profit. Now, it appears to be inexcusable stupidity—where the full gamut of society was involved, where subprime is only the beginning of resets.
I can only guess there's a lot more damage to come--and a better analysis in retrospect of the key causes. If you ask me--leadership turned a blind eye, from Wall St., govt., to corporate America.
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George Jr. got on the TV awhile ago, and the markets reacted positively for a few minutes, but now they are going back to what should be expected. Dumbass leadership from the top on down into Corporate America, all about greed, and "the $#!+ won't hit the fan on my watch".
Think it's not bad, lets see where we all are 3-4 years from now.
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And I get this email from one of my institutions, one I am not really too worried about in the first place:
We would like to take this opportunity to reassure you that *Name of my bank* remains a very safe and secure financial institution.
The news is full of recent reports about the troubles and government bailouts of banks like IndyMac Bancorp, and mortgage companies such as Fannie Mae and Freddie Mac because of their investments in sub-prime* loans. Rest assured that Team One does not invest in sub-prime loans.
For more than 70 years, *Name of my bank* has remained a strong and sound pillar in the community. Our healthy financial position is supported by over $35 Million in reserves that are accessible in times of emergencies if needed. We have a very active Board of Directors that is comprised of dedicated volunteers from our communities that ensure that the financial safety and soundness policies of the credit union are observed.
*Name of my bank* Savings Accounts are insured by the National Credit Union Association and backed by the full faith and credit of the United States Government and have never lost any Member's deposits.
Your hard earned money is very safe with *Name of my bank* and we will continue to provide a secure financial atmosphere for our Members.
Sincerely,
*Name of my bank*
Of course I haven't good feelings on that one particular regional commercial bank, in fact I have seen their stock go South big time. Looks like local yokel Credit Unions are my best new friends.
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"Rest assured that **name your bank** does not invest in sub-prime loans."
That won't matter since the risk isn't limited to sub-prime. If the systemic contagion is large enough, it will touch nearly every bank--and the mortgage mess isn't limited to the USA.
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The thirty-something stockbrokers who referred to Warren Buffett as "out of touch" need to read a book. He got it right 5 years ago when he said derivatives were "financial weapons of mass destruction."
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:D
Dear Twoshadows:
Your apprehensions are very very correct. More failures, more closures are on the cards. I can only hope better economy in your Great Country.
Many countries like us, depend on your country. So we too affected, very badly.
Sincerely
George
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Many countries like us, depend on your country. So we too affected, very badly.
Sincerely
George
I see the time soon when we will depend on many American educated people currently working in your country to lift us up. At least in your country emphasis is put on education and hard work.
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I could not agree more, the 'sloth' in most Western countries will be their downfall.
regards,
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I could not agree more, the 'sloth' in most Western countries will be their downfall.
regards,
The sloth continues even during the down fall. There are iguanas all over the place where I'm at. I watched a freaking convoy of them this morning moving through an empty parking lot. The reason for so much iguana activity, I believe, is because we've gotten quite a bit of rain over the last few months and there's lots-o-vegetation for iguanas. And people don't seem to be too interested anymore in spreading those peacock feathers over a manicured lawn.
Is it something like: why leave the bank with more than you have to?
We already lost the future. While American kids are busy sending text messages to the kid sitting next them, Asians kids are actually learning, and actually passing real tests. Oh yeah, they actually graduate and actually know what a savings account is too. And they aren't born with a 8 trillion dollar bill starring them in the face while they're still in the crib so I'm guessing they won't mind working when they graduate. The combined GDP of Asia is already higher than the combined GDP of West. Something the "news" media isn't too fast point out.
Call me un-patriotic if you wish. We're a dead country talking.
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Just as a personal observation, I think some of the "sloth" may be attributed to cynicism and fatigue from too much corporate politics.
In my last corporate job, we spent perhaps 50% of our time on procedural politics and protecting our jobs.
Under such conditions, the #1 task becomes protecting yourself--forget ideas and initiative--just don't stand out.
It's simply human nature when you get the hint execs don't care either way--because they aren't taking the initiative either--just the talk.
One reason I suspect developing countries have progressed is because people want something better for themselves.
Here, it's all about protecting what you think you have already.
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What we need is one leader who can lay out an agenda and back it up with concrete. Government is its own monster. Start the housecleaning there. Millions and millions are wasted on government agencies that are NOT needed. Many are outdated and no longer used but the offices are still manned 5 days a week and budgets submitted and paid---ALL for nothing. One agriculture office, in a recent TV news documentary, hadn't had a customer walk in the front door in over 7 years! The IRS is the biggest waste of money on the planet. Thousands of people doing what a national sales tax could do for almost free. Oh wait, that means the filthy rich would have to pay their fair share doesn't it? Well thats not going to happen! Until government can clean up its mess I don't see any hope of them cleaning up elsewhere.
You are right about one thing when you say technology is making us lazy and now it has gone far past just our children. I see lots of middle aged individuals walking around, and driving, with a cell phone stuck to their face or the side of their head completely oblivious to the world around them. All this technology is breeding stupidity and a whole new breed of folks who need the government to take care of them as they don't have a clue how to really survive if they actually needed to take care of themselves. Of course stupid people are much easier to control now aren't they? ;D
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Of course stupid people are much easier to control now aren't they? ;D
What's that mean? ;D
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It's sad, really sad, reading the opinions as to where the Western Economies are
heading. I feel very sorry for the younger generations.
To say any more will expose my ignorance.
regards,
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And politicians wonder why the younger crowd doesn't vote. They're disillusioned, that's why!