U.S. Shuts Big Bank As Crisis Intensifies

Wall Street Journal ^ | July 11, 2008 | Damian Paletta and David Enrich

[politicket]

IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators in one of the largest bank failures in U.S. history.

The Pasadena, Calif., thrift was one of the largest savings and loans in the country with about $32 billion in assets. It now joins an infamous list of collapsed banks, topped by Continental Illinois National Bank and Trust Co., which failed in 1984 with $40 billion of assets.

IndyMac specialized in Alt-A loans, a type of mortgage that can often be offered to borrowers who don't fully document their incomes or assets. ...

[jveritas]

You sir is a LUNATIC.

[GOPJ]

I wanted to caution that this is NO WAY a certainty and that deflation has an excellent chance to win this contest.

We're in for some wild swings - but why do you feel it'll end with deflation?

[jveritas]

You mean we are going to have over 25% unemployment rate? Get hold of yourself people and stop the over blowing of things. Yes we are in tough times but to go that stupidly and predict a situation worst than the Depression times is insane.

[Hound of the Baskervilles]

'You mean we are going to have over 25% unemployment rate? Get hold of yourself people and stop the over blowing of things. Yes we are in tough times but to go that stupidly and predict a situation worst than the Depression times is insane.

I agree.

[politicket]

I don't understand. How was this a correction by God?

God will life His hand from a nation that practices such abominable things and bring judgment to that nation. Since 1973, we have gone from a country where children could roam free for the most part to a country where sexual predators are throughout our land.

[Arkinsaw]

Sorry, but I must so slam. That's not the government's business, and trying to buy votes even in such a roundabout way is just as offensive to the concept of republican government as the Democrats' direct cash payments to the same voters.

Concepts such as school vouchers and Enterprise Zones are nowhere near cash payments. Promoting private property ownership is nowhere near cash payments.

You are using results of politically correct twisting of those things by our opponents to slam legitimate efforts by some of our own to improve the country.

[Arkinsaw]

You mean we are going to have over 25% unemployment rate? Get hold of yourself people and stop the over blowing of things. Yes we are in tough times but to go that stupidly and predict a situation worst than the Depression times is insane.

I doubt we are heading for a great depression right now, but the proposition that one CANNOT happen again isn't really valid.

And I can say that if we do avoid a bad result, it will be in spite of our elected officials and business leaders.

[politicket]

Have I been laboring under a false impression that that was accomplished many years ago when they put those neat little FDIC stickers on the bank windows.

You're correct that banks have had Federal rules and insurance protection for many years. However, I'm talking about the situation where the Fed comes in and issues direct policy to the local banking institutions, rather than staying at the regional level.

[Ron H.]

Greed is Blind.And money has no soul.

Kind of like in the vein of, "for the love of money is the root of all evil'.

[Tammy8]

She either has a huge cucumber patch or you live in a very small town.

Both!

[politicket]

Wow - I had no idea. That’s messed up.

That's why we need young warriors for Christ that will stand on His Word and won't back down to the evildoers.

[politicket]

Why not just move to Oregon?

;-)

[am452]

Last Fall I told my elderly Mom to get out of the market and sell everything she had. She didn’t listen to me and she may very well loose everything she has invested.

You can always make her a little room in the basement, :)

[DBrow]

Cisneros’s Fault!

[silentreignofheroes]

Pretty much.

[politicket]

In my daughter’s class they spent only one day on George Washington but spent an entire week on Civil Rights icons. And we’re supposed to be in a very conservative neighborhood. ???

In my son's class, he spent hundreds of hours learning about George Washington and our founding fathers - and enough hours doing a compare/contrast of the Jesse Jackson's of the world with the Bible to quickly discern the wickedness of Jackson's ways.

We homeschool.... :-)

[am452]

Look for a run on Indymac on Monday ala Northern Rock.

[politicket]

How do you think Wachovia will do?

Wachovia is crooked enough that I actually think they will survive for the foreseeable future. As I said earlier, I think Lehman and UBS will eventually go under, or be artificially propped up, with Lehman going first.

Just my .02 (In 2008 US currency)

[berdie]

I have to agree with you.

Times aren’t great...but this isn’t the first economic down turn this nation has had. It most likely won’t be the last. The 70’s were horrible. Example: gasoline was expensive for the time and you had to wait in line to get it. In my area, there were massive foreclosures.

The article says this is the second biggest bank closure since 1984. I don’t recall that bank or what followed. But we are still here.

I don’t think I’ll go buy a new Sealy Posturpedic this weekend to hide my $3.00 in...not yet anyway.

[Tammy8]

You are right- there is no tax advantage to bartering or trading; but it is a great way to hang on to your money and to get things that are hard to find. Most of the things we trade for are used so are cheaper than if we bought new and we trade something we didn’t need for it anyway so it works great.