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alstry (36.37)

Is almost EVERY bank Insolvent?

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August 03, 2009 – Comments (4)

If you think about it, practically every bank in America thrived in the past 10 years by loaning to various real estate ventures.  Aside from real estate, whatever else is left is relatively small.  Most banks loaned out some multiple of their capital base putting the entire banking industry at the mercy of a FED induced inflated real estate market.

Unfortunately, millions of productive Americans borrowed unsustainable amounts of money to purchase a home at FED induced bubble pricing....only to see there life savings evaporate when the FED orchestrated the crash by raising interest rates 17 times and tightened credit standards.  The mafia never acted so aggressively.

Due to Fed behavior, it getting clearer and clearer that commercial real estate is crashing, often 50% or more in just a few years.  We know that a huge percentage of commercial was financed between 2005 and 2007.  In San Francisco, over 75% of the Class A space changed hands.  In many other cities the percentage was extraordinary....espectially if we include condos, land development, and shopping centers.

Many of these CRE deals were packaged and sold to smaller community banks in the form of Trust Preferreds and, in part, the reason so many community banks sprouted up all over the nation seemingly over night.  Now practically everyone of those deals are in trouble.

Corus, Coloinial, and Guaranty are banks ostensibly insolvent but the FDIC refuses to shut them down in violation of the law.  It is very likely that thousands of other banks around the nation are in a similar finanical position simply because aside from real estate, there was not much else to lend to.....

None of this is too hard to see.  We built an economy on a credit bubble.  We infected the nation with a debt burden and interest rate that is no longer servicable at current revenue runs.  Plain and simple.  The debt is defaulting and so is the asset base of our entire nation.

If we don't restructure the debt soon at much lower interest rates or principal levels, our economy will come to a grinding halt.  New home sales have already decreased by over 80%.  Hospitals will shut down.  Patients will die.  School districts will go broke.  Municipalities will shut down.  Crime will rise.  Families will go hungry on an issue that was very preventable.

The Fed knows this, yet are lying to you as they let insolvent banks continue to operate and kick families out of their homes, shut businesses down, and destroy the economic fabric of our nation for a problem the FED created by recklessly lending money in insane quantities and temporary terms without giving a damm whether the borrower could ever afford to repay.

If we restructure the debt, the loans would perform and the banks would be solvent.  Now ask yourself, why is the Fed INTENTIONALLY/RECKLESSLY destroying America?   Because as more and more debt defaults, the asset base of America will evaporate.  After all, what do you think makes up the assets of practically every pension fund, insurance company, and bank in our country.

And for those of you relying on the stock market, how long do you think high frequency trading can maintain a market with declining earnings and over 700 reported PE?

If we don't put a stop to this Zombulation madness, pretty soon there will be no economy to Zombulate....for any of us.

4 Comments – Post Your Own

#1) On August 03, 2009 at 5:04 AM, alstry (36.37) wrote:

As the Fed continues with its Zombulation policy, how many Americans will be murdered needlessly due to a Fed induced depression?

As police officers and deputies are being laid off across California, the idea is almost breathtaking: Reduce California's prison population by 27,300 inmates, partly by letting some out of the gates.

The plan, part of Gov. Arnold Schwarzenegger's piecemeal effort to balance the budget, is designed to trim corrections spending by $1.2 billion.

But it has rattled the nerves of local law enforcement leaders and crime victim advocates who say the loss of front-line officers has made communities vulnerable.

http://www.sacbee.com/topstories/story/2077156.html

Until the Fed and politicians restructure the debt they created and infected our nation with, fewer and fewer hospitals, school districts, and municipalities, businesses, and families will be able to survive.

My friends, this is not hard to see if you just wake up, stop listening to the crap and start thinking.

Right now, Alstry estimates that about 80% of America does not qualify to borrow any money due to crashing incomes and/or high debt loads.  This includes practically every city, county, state, hospital system, and school district.

How long do you think Americans are going to be able to continue to pay inflated property taxes on declining RE values?

And if you are in th 20% that is still doing fine, the government is going to need every dime you have to keep the republic in tact....that is no joke because NEVER in American history has the revnues to government declined.....and never has government been such a key part of GDP.

Today Jefferson County shuts down, tommorow Zombulation will spread across the nation eventually hitting your location.

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#2) On August 03, 2009 at 5:14 AM, alstry (36.37) wrote:

Remember, months ago,  when Alstry was predicting unemployment would skyrocket because spouses and the elderly would be forced to return to work but would be unable to find a job.....

They're jumping back into the fray, dusting off résumés and scouring job boards, hoping to break into one of the most challenging job markets in years.

Pushed by tight budgets and rising expenses, bankruptcy and layoffs, stay-at-home mothers are mobilizing on the job front. But many are finding that landing new work is a long, hard battle.

"I realized how unprepared I was in facing my husband's unemployment. I started to look for any job I could find and had no luck," said Robin Mikels of El Dorado Hills.

Mikels, a stay-at-home mother for 17 years, with four children, was plunged back into the job market last summer, whipsawed by a failed dance school venture, husband Jasen's layoff from a software firm, and finally, in September 2008, bankruptcy.

She had additional challenges – no high school diploma and little work experience other than teaching dance. As bills mounted, she was "stressed and desperate to say the least."

http://www.sacbee.com/topstories/story/2077102.html

Zombulation is destrorying our economy and the fabric of our nation.  The Fed is lying to you...sub prime was never contained and our economic system will implode and be destroyed unless we restructure the debt suffocating commerce.

The Fed screwed America by encouraging banks to lend more money than the nation had in savings or could reasonably EVER pay back...they made sure the debt could never be paid down by increasing rates 17 times and tightening lending standards.

How much do you like being bent over?

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#3) On August 03, 2009 at 8:36 AM, alstry (36.37) wrote:

The shutdown continues....

Q2 semiconductor sales down 20% vs year ago: SIA

Barnes Q2 sales down 33% to $255 million

Hampton Roads Bankshares to halt dividend

Hampton Roads Bankshares Q2 loss $2.13/share

But if you sell to the Government...all is fine...

LOUISVILLE, Ky. (AP) -- Health insurer Humana Inc. said Monday its second-quarter profit rose 34 percent on the strength of robust growth in its Medicare Advantage business.

And if you sell to the military, you may be booming:

http://globaleconomicanalysis.blogspot.com/2009/08/military-vs-non-military-durable-goods.html

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#4) On August 04, 2009 at 2:05 AM, aqua2 (< 20) wrote:

2 weeks ago, 9 small banks were shut down here in Illinois, including mine.  Never heard a thing about it in the national media.  

If a tree falls in the woods and there is nobody to hear it.....

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