July 11, 2008
– Comments (9)
Oh, and IndyMac's failure will only cost taxpayers $4 to $8 billion.
Keep letting those banks do whatever they want? That sure worked out well, especially with our ex Fed chief pimping lousy loans the way he did before he slinked out of office and passed his mess to Bernanke.
Someone should shove the entire Ayn Rand library up Greenspan's yoohoo.
Someone should shove the entire Ayn Rand library up Greenspan's yoohoo
Classic. One rec for you!
Did I read the article correctly, that 1 billion dollars in customer deposits are uninsured and 500 million will not be paid back to deposit customers?
They can have Charles Schumer's copies. He's not using them.
TMFBent - that is not correct. If losses are only $4b to $8b, they will be absorbed by the FDIC, which is funded by member institutions. Only once 100 more banks have failed will the taxpayers have to bail out the FDIC. Currently the FDIC has $53b.
There were $1b in uninsured deposits at Indymac. It looks like some people did not follow my advice. They will get at least 50% of their money back immediately, but if they get any more they will have to wait for it.
As I have said before, I believe that the next sizeable bank to fail will be Downey Financial (DSL).
Disclosure: Still short DSL ... all the way to the end, baby!
So what's in store for these failed banks? Will they be forcibly dissolved? Absorbed by some other bank? Should we toss a benjamin at them when they hit $.10/share? Those who bought Bear Stearns at $2/share made out pretty good. Different situation, I know. So what's the most likely scenarios?
Like the Ayn Rand reference. Yes, another Rec for you!
And yes, DSL is on its way out as well.
Terrific Ayn Rand reference. I'm riding DSL all the way down too!
Actually, this is really very sad for the depositors who won't get their capital back. But in CAPS its fun!
Thanks EDI, I had that wrong. Let's hope we don't get past that $53 billion. Gotta say, if Indymac takes 8, that's getting too close.
Do we spare Greenspan one of the books then? Atlas Shrugged?