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July 13, 2008 at 5:20 PM #238995July 13, 2008 at 5:39 PM #238800
nostradamus
Participant[quote=OC Burns]
The FDIC has $52 Billion.
They insure $4.2 Trillion.
[/quote]
You are correct, according to this wsj article, and that would be a very scary situation. If the FDIC can’t cover the bank failures then I’m almost certain the reaction would be monetization. In which case your dollars will be about as useless as if they had been lost anyway.
If this situation makes you panic then I would consider getting into a bank which is fdic or ncua insured but which doesn’t have a lot of exposure to the mortgage meltdown. Of course, when the FDIC needs more money they’ll raise the rates they charge banks for insurance, so all banks will suffer (and undoubtedly pass the cost on to the consumer).
If there’s a run on the banks, all bets are off.
Disclaimer: I am not in the banking industry. I just read a lot and I am very interested in what’s happening to my money. I’m not trying to give advice, just trying to get feedback on things I’m considering doing for myself.
July 13, 2008 at 5:39 PM #238939Participant[quote=OC Burns]
The FDIC has $52 Billion.
They insure $4.2 Trillion.
[/quote]
You are correct, according to this wsj article, and that would be a very scary situation. If the FDIC can’t cover the bank failures then I’m almost certain the reaction would be monetization. In which case your dollars will be about as useless as if they had been lost anyway.
If this situation makes you panic then I would consider getting into a bank which is fdic or ncua insured but which doesn’t have a lot of exposure to the mortgage meltdown. Of course, when the FDIC needs more money they’ll raise the rates they charge banks for insurance, so all banks will suffer (and undoubtedly pass the cost on to the consumer).
If there’s a run on the banks, all bets are off.
Disclaimer: I am not in the banking industry. I just read a lot and I am very interested in what’s happening to my money. I’m not trying to give advice, just trying to get feedback on things I’m considering doing for myself.
July 13, 2008 at 5:39 PM #238946Participant[quote=OC Burns]
The FDIC has $52 Billion.
They insure $4.2 Trillion.
[/quote]
You are correct, according to this wsj article, and that would be a very scary situation. If the FDIC can’t cover the bank failures then I’m almost certain the reaction would be monetization. In which case your dollars will be about as useless as if they had been lost anyway.
If this situation makes you panic then I would consider getting into a bank which is fdic or ncua insured but which doesn’t have a lot of exposure to the mortgage meltdown. Of course, when the FDIC needs more money they’ll raise the rates they charge banks for insurance, so all banks will suffer (and undoubtedly pass the cost on to the consumer).
If there’s a run on the banks, all bets are off.
Disclaimer: I am not in the banking industry. I just read a lot and I am very interested in what’s happening to my money. I’m not trying to give advice, just trying to get feedback on things I’m considering doing for myself.
July 13, 2008 at 5:39 PM #238997Participant[quote=OC Burns]
The FDIC has $52 Billion.
They insure $4.2 Trillion.
[/quote]
You are correct, according to this wsj article, and that would be a very scary situation. If the FDIC can’t cover the bank failures then I’m almost certain the reaction would be monetization. In which case your dollars will be about as useless as if they had been lost anyway.
If this situation makes you panic then I would consider getting into a bank which is fdic or ncua insured but which doesn’t have a lot of exposure to the mortgage meltdown. Of course, when the FDIC needs more money they’ll raise the rates they charge banks for insurance, so all banks will suffer (and undoubtedly pass the cost on to the consumer).
If there’s a run on the banks, all bets are off.
Disclaimer: I am not in the banking industry. I just read a lot and I am very interested in what’s happening to my money. I’m not trying to give advice, just trying to get feedback on things I’m considering doing for myself.
July 13, 2008 at 5:39 PM #239006Participant[quote=OC Burns]
The FDIC has $52 Billion.
They insure $4.2 Trillion.
[/quote]
You are correct, according to this wsj article, and that would be a very scary situation. If the FDIC can’t cover the bank failures then I’m almost certain the reaction would be monetization. In which case your dollars will be about as useless as if they had been lost anyway.
If this situation makes you panic then I would consider getting into a bank which is fdic or ncua insured but which doesn’t have a lot of exposure to the mortgage meltdown. Of course, when the FDIC needs more money they’ll raise the rates they charge banks for insurance, so all banks will suffer (and undoubtedly pass the cost on to the consumer).
If there’s a run on the banks, all bets are off.
Disclaimer: I am not in the banking industry. I just read a lot and I am very interested in what’s happening to my money. I’m not trying to give advice, just trying to get feedback on things I’m considering doing for myself.
July 13, 2008 at 5:40 PM #238795ucodegen
ParticipantTo answer the question: Which is next, I went scouring around to see if I could find some useful info.. voila.. a new graph courtesy of financial sight blog.
Entry for this is a bit dated.. but graph is interesting.
[img_assist|nid=8227|title=Non Performing Assets as %|desc=|link=node|align=left|width=466|height=343]
Select see original from image page to see the lettering. Higher on the graph is worse off. The big downward curved line is Case Shiller HPI. On the right, going down from the top is: Countrywide, Downey Savings, Indymac, a gap followed by Washington Mutual, Wachovia, Wells Fargo and Bank of America. The upward curve in Washington Mutual and Wachovia doesn’t look good. They are quickly leaving Wells Fargo and Bank of America behind on % of non-performing, just as Option-ARM resets are arriving.. and we all know that they played in that dirty pool of toxic waste!
Now for another graph from the past:
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=653|height=600]
Note the second hump which has a large Option-ARM component and correlate the start of the onset on defaults to the change in curvature of the default rate for Washington Mutual and Wachovia.
BTW: I don’t think Wells Fargo is safe.. and as a result of Bank of America’s purchase of CFC, I don’t think they are safe anymore. Here is more on Wells Fargo by Mr Mortgage..
I wonder if some of the banking industry is being a little lenient as to what is a non-performing loan right now!!
— Have fun!!
July 13, 2008 at 5:40 PM #238934ParticipantTo answer the question: Which is next, I went scouring around to see if I could find some useful info.. voila.. a new graph courtesy of financial sight blog.
Entry for this is a bit dated.. but graph is interesting.
[img_assist|nid=8227|title=Non Performing Assets as %|desc=|link=node|align=left|width=466|height=343]
Select see original from image page to see the lettering. Higher on the graph is worse off. The big downward curved line is Case Shiller HPI. On the right, going down from the top is: Countrywide, Downey Savings, Indymac, a gap followed by Washington Mutual, Wachovia, Wells Fargo and Bank of America. The upward curve in Washington Mutual and Wachovia doesn’t look good. They are quickly leaving Wells Fargo and Bank of America behind on % of non-performing, just as Option-ARM resets are arriving.. and we all know that they played in that dirty pool of toxic waste!
Now for another graph from the past:
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=653|height=600]
Note the second hump which has a large Option-ARM component and correlate the start of the onset on defaults to the change in curvature of the default rate for Washington Mutual and Wachovia.
BTW: I don’t think Wells Fargo is safe.. and as a result of Bank of America’s purchase of CFC, I don’t think they are safe anymore. Here is more on Wells Fargo by Mr Mortgage..
I wonder if some of the banking industry is being a little lenient as to what is a non-performing loan right now!!
— Have fun!!
July 13, 2008 at 5:40 PM #238941ParticipantTo answer the question: Which is next, I went scouring around to see if I could find some useful info.. voila.. a new graph courtesy of financial sight blog.
Entry for this is a bit dated.. but graph is interesting.
[img_assist|nid=8227|title=Non Performing Assets as %|desc=|link=node|align=left|width=466|height=343]
Select see original from image page to see the lettering. Higher on the graph is worse off. The big downward curved line is Case Shiller HPI. On the right, going down from the top is: Countrywide, Downey Savings, Indymac, a gap followed by Washington Mutual, Wachovia, Wells Fargo and Bank of America. The upward curve in Washington Mutual and Wachovia doesn’t look good. They are quickly leaving Wells Fargo and Bank of America behind on % of non-performing, just as Option-ARM resets are arriving.. and we all know that they played in that dirty pool of toxic waste!
Now for another graph from the past:
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=653|height=600]
Note the second hump which has a large Option-ARM component and correlate the start of the onset on defaults to the change in curvature of the default rate for Washington Mutual and Wachovia.
BTW: I don’t think Wells Fargo is safe.. and as a result of Bank of America’s purchase of CFC, I don’t think they are safe anymore. Here is more on Wells Fargo by Mr Mortgage..
I wonder if some of the banking industry is being a little lenient as to what is a non-performing loan right now!!
— Have fun!!
July 13, 2008 at 5:40 PM #238992ParticipantTo answer the question: Which is next, I went scouring around to see if I could find some useful info.. voila.. a new graph courtesy of financial sight blog.
Entry for this is a bit dated.. but graph is interesting.
[img_assist|nid=8227|title=Non Performing Assets as %|desc=|link=node|align=left|width=466|height=343]
Select see original from image page to see the lettering. Higher on the graph is worse off. The big downward curved line is Case Shiller HPI. On the right, going down from the top is: Countrywide, Downey Savings, Indymac, a gap followed by Washington Mutual, Wachovia, Wells Fargo and Bank of America. The upward curve in Washington Mutual and Wachovia doesn’t look good. They are quickly leaving Wells Fargo and Bank of America behind on % of non-performing, just as Option-ARM resets are arriving.. and we all know that they played in that dirty pool of toxic waste!
Now for another graph from the past:
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=653|height=600]
Note the second hump which has a large Option-ARM component and correlate the start of the onset on defaults to the change in curvature of the default rate for Washington Mutual and Wachovia.
BTW: I don’t think Wells Fargo is safe.. and as a result of Bank of America’s purchase of CFC, I don’t think they are safe anymore. Here is more on Wells Fargo by Mr Mortgage..
I wonder if some of the banking industry is being a little lenient as to what is a non-performing loan right now!!
— Have fun!!
July 13, 2008 at 5:40 PM #239000ParticipantTo answer the question: Which is next, I went scouring around to see if I could find some useful info.. voila.. a new graph courtesy of financial sight blog.
Entry for this is a bit dated.. but graph is interesting.
[img_assist|nid=8227|title=Non Performing Assets as %|desc=|link=node|align=left|width=466|height=343]
Select see original from image page to see the lettering. Higher on the graph is worse off. The big downward curved line is Case Shiller HPI. On the right, going down from the top is: Countrywide, Downey Savings, Indymac, a gap followed by Washington Mutual, Wachovia, Wells Fargo and Bank of America. The upward curve in Washington Mutual and Wachovia doesn’t look good. They are quickly leaving Wells Fargo and Bank of America behind on % of non-performing, just as Option-ARM resets are arriving.. and we all know that they played in that dirty pool of toxic waste!
Now for another graph from the past:
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=653|height=600]
Note the second hump which has a large Option-ARM component and correlate the start of the onset on defaults to the change in curvature of the default rate for Washington Mutual and Wachovia.
BTW: I don’t think Wells Fargo is safe.. and as a result of Bank of America’s purchase of CFC, I don’t think they are safe anymore. Here is more on Wells Fargo by Mr Mortgage..
I wonder if some of the banking industry is being a little lenient as to what is a non-performing loan right now!!
— Have fun!!
July 13, 2008 at 5:56 PM #238806TheBreeze
ParticipantBank analysts are saying between 150 and 300 banks could fail in the next few years:
Here’s a list of banks from the article:
Among the other banks high on the list include Newport Beach, California’s Downey Financial Corp (nyse: DSL – news – people ), with a 95.4 percent ratio; Fort Lauderdale, Florida’s BFC Financial Corp (nyse: BFF – news – people ), which invests in BankAtlantic Bancorp Inc (nyse: BBX – news – people ) ; Coral Gables, Florida’s BankUnited Financial Corp (nasdaq: BKUNA – news – people ); Chicago’s Corus Bankshares Inc ; Los Angeles’ FirstFed Financial Corp; Troy, Michigan’s Flagstar Bancorp Inc (nyse: FBC – news – people ), and Washington Mutual, at 40.6 percent.
The list also includes Puerto Rico’s Doral Financial Corp (nyse: DRL – news – people ), First BanCorp (nasdaq: FBNC – news – people ) and Santander BanCorp.
July 13, 2008 at 5:56 PM #238944ParticipantBank analysts are saying between 150 and 300 banks could fail in the next few years:
Here’s a list of banks from the article:
Among the other banks high on the list include Newport Beach, California’s Downey Financial Corp (nyse: DSL – news – people ), with a 95.4 percent ratio; Fort Lauderdale, Florida’s BFC Financial Corp (nyse: BFF – news – people ), which invests in BankAtlantic Bancorp Inc (nyse: BBX – news – people ) ; Coral Gables, Florida’s BankUnited Financial Corp (nasdaq: BKUNA – news – people ); Chicago’s Corus Bankshares Inc ; Los Angeles’ FirstFed Financial Corp; Troy, Michigan’s Flagstar Bancorp Inc (nyse: FBC – news – people ), and Washington Mutual, at 40.6 percent.
The list also includes Puerto Rico’s Doral Financial Corp (nyse: DRL – news – people ), First BanCorp (nasdaq: FBNC – news – people ) and Santander BanCorp.
July 13, 2008 at 5:56 PM #238951ParticipantBank analysts are saying between 150 and 300 banks could fail in the next few years:
Here’s a list of banks from the article:
Among the other banks high on the list include Newport Beach, California’s Downey Financial Corp (nyse: DSL – news – people ), with a 95.4 percent ratio; Fort Lauderdale, Florida’s BFC Financial Corp (nyse: BFF – news – people ), which invests in BankAtlantic Bancorp Inc (nyse: BBX – news – people ) ; Coral Gables, Florida’s BankUnited Financial Corp (nasdaq: BKUNA – news – people ); Chicago’s Corus Bankshares Inc ; Los Angeles’ FirstFed Financial Corp; Troy, Michigan’s Flagstar Bancorp Inc (nyse: FBC – news – people ), and Washington Mutual, at 40.6 percent.
The list also includes Puerto Rico’s Doral Financial Corp (nyse: DRL – news – people ), First BanCorp (nasdaq: FBNC – news – people ) and Santander BanCorp.
July 13, 2008 at 5:56 PM #239002ParticipantBank analysts are saying between 150 and 300 banks could fail in the next few years:
Here’s a list of banks from the article:
Among the other banks high on the list include Newport Beach, California’s Downey Financial Corp (nyse: DSL – news – people ), with a 95.4 percent ratio; Fort Lauderdale, Florida’s BFC Financial Corp (nyse: BFF – news – people ), which invests in BankAtlantic Bancorp Inc (nyse: BBX – news – people ) ; Coral Gables, Florida’s BankUnited Financial Corp (nasdaq: BKUNA – news – people ); Chicago’s Corus Bankshares Inc ; Los Angeles’ FirstFed Financial Corp; Troy, Michigan’s Flagstar Bancorp Inc (nyse: FBC – news – people ), and Washington Mutual, at 40.6 percent.
The list also includes Puerto Rico’s Doral Financial Corp (nyse: DRL – news – people ), First BanCorp (nasdaq: FBNC – news – people ) and Santander BanCorp.
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