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US bank 'to fail within months'
BBC ^ | 8/19/08

Posted on 08/19/2008 10:10:59 AM PDT by Santa Fe_Conservative

The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months, a former IMF chief economist has warned.

Kenneth Rogoff's comments came as shares in Fannie Mae and Freddie Mac sank on a report that the home lenders would, in effect, be nationalised.

Despite hopes that the US economy had turned the corner, Mr Rogoff claimed it was "not out of the woods".

"I would even go further to say 'the worst is to come'," he said.

"We're not just going to see mid-sized banks go under in the next few months," said Mr Rogoff, who held the IMF role between 2001 and 2004.

"We're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks."

Speaking at a conference in Singapore, Mr Rogoff, now an economics professor at Harvard, forecast that Fannie Mae and Freddie Mac would "probably" not exist in their present form in a few years.

(Excerpt) Read more at news.bbc.co.uk ...


TOPICS: Business/Economy
KEYWORDS: bank; bankfailure; banking; bankofamerica; banks; credit; death; econmy; fanniemae; fdic; freddiemac; globaleconomy; globalism; govwatch; wachovia
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To: Santa Fe_Conservative

This isn’t even news anymore. Since IndyMac, Bear and the GSEs folded, what could be bigger? Somebody predicting more of the same doesn’t even raise my radar.

A big bank will fail. DUH! How about predicing if we are talking about 5 big banks or 50 failing. That would be a prediction woth discussing. A bank smaller than Indy or Bear folding? Well, duh. Tell me something I don’t already know.

The only value in this article is to indicate to people that the crisis has quite a ways to go before it is over and the economic climate improves. But the doomers and gloomers already know this and the Freepyannas aren’t ready to believe it.

A mild prediction overall.


81 posted on 08/19/2008 1:23:34 PM PDT by Freedom_Is_Not_Free
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To: Slapshot68

The dumbest post of the day. Are you wishing ill on tens of millions of people?


82 posted on 08/19/2008 1:25:11 PM PDT by jveritas (God Bless President Bush and our brave troops)
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To: Santa Fe_Conservative

So is Lehamn off the hook? They were on the bubble after Bear.


83 posted on 08/19/2008 1:25:13 PM PDT by Freedom_Is_Not_Free
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To: Santa Fe_Conservative

So is Lehman off the hook? They were on the bubble after Bear.


84 posted on 08/19/2008 1:25:33 PM PDT by Freedom_Is_Not_Free
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To: Santa Fe_Conservative
Wacovia has one of my 401k's. That wouldn't be so good. BoA I wouldn't mind seeing sink. I have a "left over" checking account with them I stopped adding cash to. Use their bank card for shopping at Aldi.

As long as US Bank stays afloat, I don't need to worry too much about my mortgage...

85 posted on 08/19/2008 1:28:11 PM PDT by Dead Corpse (What would a free man do?)
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To: logician2u
That is a scam e-mail. I received this e-mail last week and called Bank of America immediately to alert them about it.
86 posted on 08/19/2008 1:30:07 PM PDT by jveritas (God Bless President Bush and our brave troops)
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To: All
I cannot believe the number of hateful idiots on this thread wishing for the failure of this bank or that bank and in the process they do not give a damn about the millions of people who will be hurt if a bank collapse. Do you people thrive on hate and anger? Do you have any shame left in you? Who are you people?

PS: Come back with your typical idiotic reply and tell me that calling people names and hateful is a liberal tactic.

87 posted on 08/19/2008 1:35:49 PM PDT by jveritas (God Bless President Bush and our brave troops)
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To: xc1427

I think it will be WM. Being a foresighted, extremely intelligent investor I dumped their stock a month ago.


88 posted on 08/19/2008 1:45:44 PM PDT by IbJensen (Ali Bama isn't going to make it!)
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To: Slapshot68

I figured as much...just being sure...:)


89 posted on 08/19/2008 2:05:02 PM PDT by rlmorel (If they can call George "Dubya", we can call Barack "Hussein")
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To: IbJensen

Wise move, sir.


90 posted on 08/19/2008 2:06:05 PM PDT by xc1427 (It's better to die on your feet than to live on your knees...Midnight Oil (Power and the Passion))
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To: nothingnew
$$$---Dollars

You write tech manuals for Microsoft, don't you....? ;-)

91 posted on 08/19/2008 2:34:26 PM PDT by r9etb
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To: logician2u

Someone is phishing in your pond.


92 posted on 08/19/2008 2:40:24 PM PDT by bert (K.E. N.P. +12 . Conservation? Let the NE Yankees freeze.... in the dark)
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To: Dead Corpse
BoA I wouldn't mind seeing sink.

I mind. But I'm not hoping it's Wachovia (a bank I had a terrible experience with once) either. Frankly I'm hoping the rumor simply isn't true.

93 posted on 08/19/2008 5:52:55 PM PDT by Sue Perkick (And I hope that what I've done here today doesn't force you to have a negative opinion of me....)
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To: Dr. Bogus Pachysandra

Do you work for a water company?


94 posted on 08/19/2008 5:56:22 PM PDT by Randy Larsen ( BTW, If I offend you! Please let me know, I may want to offend you again!)
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To: Santa Fe_Conservative

US Bank isn’t gonna like this headline!


95 posted on 08/19/2008 6:19:56 PM PDT by Randy Larsen ( BTW, If I offend you! Please let me know, I may want to offend you again!)
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To: Santa Fe_Conservative

A nervous LOL. I have been moving money around. BOA has 100K + of my money I deposited a couple of weeks ago-10 days to clear a check. Day 11 they bounced a check to my brokers account. I will be relieved when I get down to a couple of thousand.

I also have a business account at Wachovia. Double trouble, both are next door to my office so real convenient


96 posted on 08/19/2008 6:27:30 PM PDT by underbyte
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To: underbyte
Don't have more than $100K in any single bank. If it fails, it will become a federal bank. That's all you will get back. Think MM funds with inflation cranking up. And well chosen other funds. Buy low. And other banks. Spreading risk is the goal.

Do you want to walk out of a bank with $100K in a briefcase and an armed Treasury official or SS Agent escorting you to your car? And police cars all over looking for bandits? That happened in L.A. not long ago with some bank.

Heck, just take your car and briefcase to the Belaggio in Vegas and tell them you're making a deposit in their vault. Summer's almost over. Enjoy the pools, saunas, eat big, play big at what you know. Shows. A very nice room for you and your lovey. Italian marble style. Then come back and put the money back to where it came from.

97 posted on 08/19/2008 7:31:55 PM PDT by BobS
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To: BobS

“”””Don’t have more than $100K in any single bank.””””

No way around it, deposit check was in excess of 100K, I am moving it out as fast as I can but the 10 day turn around does not make it easy. In a crisis lots of people will get screwed if they are not more liquid.

I have 7 bank accounts as it is (LOL I am running out of local banks) I have been consolidating my investments/money with the downturn of events to more stable or liquid vehicles.


98 posted on 08/19/2008 7:44:47 PM PDT by underbyte
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To: 4catsinmaryland

Thanks to everyone who pointed me to links on Wachovia. For the time being, I’m going to sit tight and take my chances. We have less than 200k in there anyway, though these days I feel like the FDIC insurance is getting to be a risky proposition too...


99 posted on 08/20/2008 5:14:57 AM PDT by old and tired
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To: jveritas

It was said tongue-in-cheek because I can’t stand BoA. Lighten up.


100 posted on 08/20/2008 5:42:34 AM PDT by Slapshot68
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