Bank Failures

[Popol Vuh]

I just thought to post a few interesting website links on this subject. Very disconcerting stuff.

http://bankimplode.com/

http://hf-implode.com/

http://calculatedrisk.blogspot.com/2008/03/fdic-to-hire-more-workers-braces-for.html


Edit: Thanks to Javaman for this other link I missed: http://ml-implode.com/

[Eurobabe]

1. What happens if you have a 401K

as a former employee in one of these imploding banks? :shrug:

[slackmaster]

3. You'll probably need to do a trustee-to-trustee transfer to put the assets in a self-directed IRA

In another instituation.

[dems_rightnow]

6. Your money should be safe...

... if that's what you're asking. You'd for sure want to make sure you don't have money in the employer stock, if that was an option.

[Javaman]

2. Also...

http://ml-implode.com/

[Popol Vuh]

4. Thanks Javaman I missed that one

I'll add it to the list.

:hi:

[Eurobabe]

5. HomeBuilder Implode!

Yowsa, now that is interesting, glad I got out of that industry when I did, (my builder is not on the list, they are private family owned biz)

http://builder-implode.com/

[Zynx]

7. Even most of the uninsured deposits in Indymac will be made good.

Very rarely does anyone lose anything in these banks.

[Hydra]

8. Someone pointed something out to me today that might put a hole in that idea

http://www.rttnews.com/ArticleView.aspx?Id=658688&pageNum=2062_3100_1

"They're going to run out of money, with certainty," he predicted. "Congress is going to have to recapitalize the FDIC, those $50 billion plus is not going to be enough, by no means."

If too many banks go under, $50 Billion to cover the shortfall for the deposits of up to $100,000 will evaporate before you know it.

Congress will probably shore it up...maybe...

[Zynx]

9. The FDIC insurance isn't the only means by which deposits are made good.

The FDIC insures your deposits while it sells off the bank's assets to healthier banks. That's harder this year, but it can still be done. More often than not, no one loses very much of anything in bank failures.

Also, we will run up as much debt as it takes to keep the banking system solvent. These bailouts will come hot and heavy if they are needed. I estimated a half-trillion dollar bailout of the financial system when this started last year. I think that might be accurate.

[Hydra]

10. Your number may actually be low

But it concerns me simply because Capitol Hill has been happy to throw people under the bus in favor of Corps.

Should they cover the bank failures? Of course, or everyone will make a run on them. Will they? I would have said they'd be insane not to, but look at Katrina, Bear Sterns and now Freddie/Fannie.

[Zynx]

11. They'll be bailed out. Anyone who makes a run on their bank is a spastic moron.