Death Watch
On January 14, 2008 the FDIC web site began posting the rules for reimbursing depositors in the event of a bank failure. http://www.fdic.gov/news/news/financial/2008/fil08002.html#body
The implication is clear, the FDIC has begun the “death watch” on the many banks which are currently drowning in their own red ink. The problem for the FDIC is that it has never supervised a bank failure which exceeded 175,000 accounts. So the impending financial tsunami is likely to be a crash-course in crisis management. Today some of the larger banks have more than 50 million depositors, which will make the FDIC's job nearly impossible. Good luck. http://www.marketoracle.co.uk/Article3643.html
What does it all mean?
It means there's going to be an unprecedented wave of bank closures in the US and that people who want to hold on to their life savings are going have to be extra vigilant as the situation continues to deteriorate. And it is deteriorating very quickly.
"One has to realize that there is now a rising probability of a 'catastrophic' financial and economic outcome, i.e. a vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe. That is why the Fed has thrown caution to the wind and taken a very aggressive approach to risk management.” (Nouriel Roubini EconoMonitor)
“The numbers are so terrible, it's beyond belief,” said Scott Anderson, senior economist at Wells Fargo & Co. The $2 trillion that has been wiped out from falling home prices, the slowdown in lending activity at the banks, the loss $600 billion in home equity loans, and the faltering stock market have all contributed to a noticeable change in the public's attitudes towards spending. Traffic to the shopping malls has slowed to a crawl. Retail shops had their worst January on record. Homeowners are hoarding their earnings to cover basic expenses and to make up for their lack of personal savings. The spending-spigot has been turned off. America's consumer culture is in full-retreat. The slowdown is here. It is now. We are likely to see the sharpest decline in consumer spending in US history.
It appears that Citigroup has started cancelling credit cards in the UK. The interesting part is that the article does not state that the card holders are in default, rather it says the cards are being canceled because the account holders were deemed too risky. They aren't just cancelling one or two. The article says that 160,000 cards will be cancelled. link to marketwatch
http://dreamingofmoshiach.blogspot.com/2007/10/banks-bankrupt.html
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The implication is clear, the FDIC has begun the “death watch” on the many banks which are currently drowning in their own red ink. The problem for the FDIC is that it has never supervised a bank failure which exceeded 175,000 accounts. So the impending financial tsunami is likely to be a crash-course in crisis management. Today some of the larger banks have more than 50 million depositors, which will make the FDIC's job nearly impossible. Good luck. http://www.marketoracle.co.uk/Article3643.html
What does it all mean?
It means there's going to be an unprecedented wave of bank closures in the US and that people who want to hold on to their life savings are going have to be extra vigilant as the situation continues to deteriorate. And it is deteriorating very quickly.
"One has to realize that there is now a rising probability of a 'catastrophic' financial and economic outcome, i.e. a vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe. That is why the Fed has thrown caution to the wind and taken a very aggressive approach to risk management.” (Nouriel Roubini EconoMonitor)
“The numbers are so terrible, it's beyond belief,” said Scott Anderson, senior economist at Wells Fargo & Co. The $2 trillion that has been wiped out from falling home prices, the slowdown in lending activity at the banks, the loss $600 billion in home equity loans, and the faltering stock market have all contributed to a noticeable change in the public's attitudes towards spending. Traffic to the shopping malls has slowed to a crawl. Retail shops had their worst January on record. Homeowners are hoarding their earnings to cover basic expenses and to make up for their lack of personal savings. The spending-spigot has been turned off. America's consumer culture is in full-retreat. The slowdown is here. It is now. We are likely to see the sharpest decline in consumer spending in US history.
It appears that Citigroup has started cancelling credit cards in the UK. The interesting part is that the article does not state that the card holders are in default, rather it says the cards are being canceled because the account holders were deemed too risky. They aren't just cancelling one or two. The article says that 160,000 cards will be cancelled. link to marketwatch
http://dreamingofmoshiach.blogspot.com/2007/10/banks-bankrupt.html
Labels: Signs of Redemption
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