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alstry (36.37)

Our Government Lying????

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April 08, 2008 – Comments (6)

April 7, 2008, 10:13 pmFDIC Chairwoman Calls for Activism

Federal Deposit Insurance Corp. Chairwoman Sheila Bair said Monday policy makers needed to consider a more “activist” government response to prevent an escalation of foreclosures even if such measures aren’t “politically popular.” In a speech to the Equipment Leasing and Finance Association at a Washington hotel, Ms. Bair said policy makers must be “honest” with the American people about the need for such a move, adding that it would likely include some federal spending.

2) Regulators are “increasingly concerned” about the risks posed by high concentrations of commercial real estate loans at banks, especially at financial institutions with between $1 billion and $10 billion in assets.

http://blogs.wsj.com/economics/2008/04/07/fdic-chairwoman-calls-for-activism/?mod=WSJBlog?mod=homeblogmod_economicsblog

HONEST with the American people???  WTF, have policy makers been dishonest up to this point.  Financial institutions with $1 to $10 Billion in assets?  That is a boat load of our commercial banks. 

Wasn't Ms. Blair just a few months back telling us everything was OK?  FDIC only has about $80 Billion in reserves......you think Ms. Blair is worried?????  You think the American people would like some "honesty" about the safety of our money in the banks?

If we have to bail out the FDIC, how much devaluation will our currency suffer?  How high will interest rates go?

It appears that our commercial banks are now subprime, our auction rate municipal bonds are subprime, our prime loans resetting are subprime, commercial RE debt is subprime, private equity loans are subprime.....is the FDIC now subprime?

6 Comments – Post Your Own

#1) On April 08, 2008 at 11:56 AM, alstry (36.37) wrote:

Can the FDIC go broke.  It appears HO associations are in trouble:

“Homeowners associations strapped by unpaid assessments related to the foreclosure-ridden real-estate market are mustering volunteer work crews, cutting maintenance jobs and scrimping on landscaping to save money.”

“Phoenix, Chandler and Avondale are among Valley cities fielding calls for help from HOAs that previously turned only to their own boards of directors and management companies.”

“‘We are in new territory and need to find creative ways to work with everyone, whether that’s stepping in with volunteerism or offering some training,’ said Annie Alvarado, deputy director of Phoenix Neighborhood Services.”

“Like miniature governments that depend on revenue to finance upkeep of common areas, community pools and private roads, HOA boards have to cut expenses or raise fees when revenues fall.”

http://www.azcentral.com/news/articles/2008/04/03/20080403hoas0403.html

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#2) On April 08, 2008 at 12:51 PM, alstry (36.37) wrote:

Can the FDIC go broke.  It appears HO associations are in trouble:

“Homeowners associations strapped by unpaid assessments related to the foreclosure-ridden real-estate market are mustering volunteer work crews, cutting maintenance jobs and scrimping on landscaping to save money.”

“Phoenix, Chandler and Avondale are among Valley cities fielding calls for help from HOAs that previously turned only to their own boards of directors and management companies.”

“‘We are in new territory and need to find creative ways to work with everyone, whether that’s stepping in with volunteerism or offering some training,’ said Annie Alvarado, deputy director of Phoenix Neighborhood Services.”

“Like miniature governments that depend on revenue to finance upkeep of common areas, community pools and private roads, HOA boards have to cut expenses or raise fees when revenues fall.”

http://www.azcentral.com/news/articles/2008/04/03/20080403hoas0403.html

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#3) On April 08, 2008 at 4:19 PM, alstry (36.37) wrote:

OK, the government is not lying anymore.  At least the Fed is admitting we may be facing a severe and protracted downturn.  Since we were facing a recession when the said  everything was hunky dory, could be now really be facing a Depression if the FDIC goes broke?

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#4) On April 08, 2008 at 4:21 PM, DemonDoug (32.24) wrote:

HOA's are the absolute stupidest, worst, and most idiotic things to come out of this whole bubble.  It's one thing if you are in a condo in a shared building - you need to maintain the building and everyone needs to pay their fair share.  But for a single famliy home?  I mean c'mon, yeesh.

I would never, ever, ever, ever buy a condo or ever be a part of an HOA.  I have no idea why so many americans have chosen to live this way.  In the meantime, I'm happily renting and building equity the old fashioned way: by saving it in the bank (which is also kind of scary since I'm not sure my bank is going to survive :( ). 

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#5) On April 08, 2008 at 4:23 PM, DemonDoug (32.24) wrote:

btw our government has lied about so many things, anyone who takes what the government says at face value must be living in a turtle shell.

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#6) On April 08, 2008 at 6:33 PM, loriyacht (33.42) wrote:

Ms. Bair is likely to get fired is she keeps talking. 

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