The Level Of Honesty Has Increased In California
The Pasadena Star News reports from California. “Thousands of worried customers swarmed IndyMac Federal Bank FSB branches across the San Gabriel Valley on Monday. They came in response to a federal takeover of IndyMac Bancorp Inc. on Friday after regulators decided the bank did not have enough cash to meet its obligations to depositors.”
“With mud still fresh on his knees, 62-year-old landscaper Paul Lara of Pasadena searched for a bank worker to answer questions about withdrawing his certificate of deposit. ‘They said, ‘Don’t worry about your money,’ Lara said. ‘But of course I am worried about my money.’”
“James Sherman, an IndyMac customer with more than $100,000 in the bank, was hoping to get 50 cents on the dollar above the federally insured limit, with the remainder of his money possibly being applied to his mortgage with IndyMac.”
“‘This is my life savings here. I feel really horrible,’ he said. ‘What do you resort to now, putting money back in the mattress?’”
“In all, about $1 billion of IndyMac deposits are uninsured, FDIC officials said. ‘With this many uninsured deposits in uninsured accounts, we are trying to minimize the impact,’ John Bovenzi, the bank’s new CEO, said of the decision to offer back half of uninsured money.”
“And because the FDIC assumed operation of the bank, the government will now be forced to defend itself from several class-action lawsuits filed against IndyMac Bancorp, Bovenzi said. He doubted much money would be available to those suing the bank.”
“‘I can say that depositors will get priority to any money left from the sale of the bank,’ he said. ‘So those people in the lawsuits would be subordinate to depositors. And the shareholders will be at the end of the line.’”
“IndyMac customer Todd Bash has gained access (to) his funds. But he was only able to get back about $90,000 of the $180,000 he had scattered throughout CDs, a money market account and a checking account.”
“‘I went to the West Covina branch at 9 a.m. and was there until 5 p.m. and I still didn’t get in,’ the 43-year-old West Covina resident said. ‘There were no tents set up for shade, no trash cans … no water.’”
“‘No one will give me any answers,’ he said. ‘I asked one of the tellers and they didn’t know why they took that much out. I also talked to some people from the FDIC who were at the branch and they both said, ‘We don’t know.’ They said I’d have to arrange a meeting with the FDIC to find out.’”
“Rising tensions boiled over Tuesday at an IndyMac Federal Bank branch in Encino as frustrated customers converged on the bank for the second day to withdraw money.”
The Glendale News Press. “The large crowds at IndyMac locations in California prompted the FDIC to ask local police officers to patrol the grounds. The officers were tasked with calming an angry crowd as well as ensuring that nearby businesses were not hampered.”
“Burbank police Sgt. Matthew Ferguson said the swarm of customers on Monday morning at the Burbank IndyMac was relatively calm, though anger directed at bank officials was palpable.”
“‘I got my money out,’ said Frank Brunes, who had been outside Burbank’s IndyMac branch since 4 a.m. ‘I’m going to cash it right now.’”
The Burbank Leader. “‘The bottom line is the CEO is responsible. Why aren’t they in jail?’ Burbank resident Peter Angles said as he waited to withdraw funds.”
“Angles said he lost $80,000 on the heels of Enron’s 2004 collapse and, as a result, has soured on financial institutions and their leaders. Nevertheless, he was confident IndyMac would not fall.”
“‘You never think it’s going to happen here, but the reality is it hit home,’ he said. ‘And home is now in Burbank.’”
“‘I’ve got my whole life savings in there,’ said John Sego, 84, at the bank’s Burbank location. ‘I need to get my money and close my account.’”
The Daily Pilot. “Hundreds of nervous customers flocked to the Costa Mesa branch of IndyMac Bank Monday morning fearing they might lose the money they had invested in the failed institution. Workers were greeted early Monday by a sea of frantic customers. The bank doors were locked and security guards let people in one at a time. Each exiting person was swarmed by a group of people seeking information.”
“‘How much did they give you?’ ‘What type of account did you have? How many beneficiaries?’”
“A shouting match even broke out when a woman was accused of cutting in line and subsequently sent to the back by a security guard.”
“‘We just want to make sure we get our money, but they’re not guaranteeing it right now,’ said Brandon Heinz of Corona del Mar. ‘There’s a lot of fear and anxiety here. You can feel it.’”
“He said he had $600,000 deposited in the bank in a joint account but the bank was only insuring $400,000. As soon as possible he wanted to take all of it out of the account.”
The Ventura County Star. “Ann Stanley didn’t sleep much last weekend. After learning Friday that IndyMac Bank was seized by the Federal Deposit Insurance Corp., Stanley started worrying about the $180,000 in her family’s account at the bank.”
The Westlake Village resident showed up at 6 a.m. Monday at the IndyMac branch in Camarillo. She was No. 2 in line and far from alone. Hundreds of anxious bank customers lined up at each IndyMac branch in Thousand Oaks, Ventura and Camarillo, as well as at other locations in the Greater Los Angeles area.”
“Clutching their bank statements and portfolios, Camarillo IndyMac customers waited in the hot sun for hours as the line crept forward. Some panicked customers withdrew their maximum daily sum allowed from ATMs.”
“‘We have money in the bank, and we wouldn’t be sitting here if we weren’t worried,’ Josephine Newman said.”
“Early Monday, the Newmans brought their lawn chairs, prepared to wait hours in line outside the Camarillo branch. They wanted to verify their trusts and find out if the amount in excess of $100,000 would be covered.”
“‘You think you have money safe in the bank,’ Mickey Newman said, adding that he was unsure where to transfer the money. ‘You don’t know where to go, they’re all in trouble.’”
“‘We’re going to have a lumpy mattress,’ Josephine Newman joked.”
“Dan Nickerson said he ‘took a tranquilizer’ when he found out about IndyMac’s collapse. That was before the Fillmore resident learned that at least part of his savings is federally insured. By Monday morning, some of the shock had worn off, and he seemed resigned to the fact that he could lose up to $50,000.”
“‘If we lose money, it’s too bad, but it’s a fact of life,’ Nickerson said.”
“Just after the Camarillo branch opened, there was a whoop that pierced the nervous chatter of the people in line, providing a glimmer of hope for those waiting.”
“Stanley emerged from the bank, cheering and holding a check. Because she had multiple beneficiaries on her certificate of deposit account, she was able to get the money, which had been set aside for her son’s education.”
“She called her husband on her cell phone. ‘I’m out,’ she told him. ‘I got it all.’”
The Daily Bulletin. “Gripped by worries of lost savings, hundreds of IndyMac Bank customers formed winding queues around Inland Valley branches Monday with hopes of seizing their money following the bank’s takeover by federal regulators last week. The scene was reminiscent of eager crowds awaiting a parade - with folding camping chairs and oversized parasols to ease the wait. But the anticipation was joyless.”
“An hour after the Bonita Avenue location in La Verne opened its doors, Upland resident Melvin Summers waited on D Street without a view of the front doors. ‘I’d never thought I’d see this day,’ he said.”
“Federal assurances weren’t enough for Rancho Cucamonga resident Gail Britzius, who despite having less than $100,000 in her family account, said she didn’t want to take any chances. ‘This could be a start to a whole chain of bank failures,’ Britzius said. ‘It certainly opens your eyes to how serious the economic situation is.’”
The Press Democrat. “Although they didn’t make the subprime loans that brought down IndyMac, Sonoma County banks have been sucked into a crisis of consumer confidence over the health of financial institutions large and small.”
“‘Everybody is along for the same ride,’ said Guy Dana, chief credit officer for Summit State Bank, a community bank based in Santa Rosa.”
“‘We’ve been telling our shareholders this is a very tough time in the real estate market and in the economy. Our earnings are definitely going to be down in 2008, but we have strong capital and liquidity and expect to recover in 2009,’ said Bruce DeCrona, chief financial officer for Exchange Bank, the largest bank based in Sonoma County.”
“Exchange Bank has seen its shares drop 39 percent over the past year. Summit’s stock has dropped 52 percent over the past year. Nationwide, regional bank stocks fell 48 percent over the past year, according to the KBW Regional Bank Index.”
“The sharp drop has wiped out $150 million from the market value of the four publicly held banks based in Sonoma County. While the number seems huge, it is tiny compared to the $218 billion drop in market value suffered by Bank of America, Wells Fargo and Washington Mutual. ”
“The three financial institutions have lost 57 percent of their value on Wall Street over the last year.”
“One potentially troublesome area is construction lending. Local banks have pulled back on loans to developers for buying land and building subdivisions. Banks also are increasing reserves to cover loan losses, primarily in response to builder troubles.”
‘Exchange Bank has experienced an increase in defaults on construction loans. The bank has set aside $19 million to cover loan losses, almost double the amount from the end of 2007.”
“‘Our bank is performing very well in all areas with the exception of our residential construction sector. We’re seeing more defaults with that line of business,’ DeCrona said. ‘We’re trying to stay current with the problems. At this stage, it’s not getting better.’”
The Contra Costa Times. “Although Contra Costa County’s foreclosure rate slowed in June, some areas of the county hardest hit by the crisis continue to see the rate hold steady or increase. Of the 471 homes listed for sale in June in Brentwood, 130 were foreclosures - up nearly 6 percent from the 123 foreclosures listed in May.”
“The percent of listings there that were distressed - a label that encompasses both foreclosed properties and short sales - was 66.88 percent, up slightly more than 2 percent from May.”
“In neighboring Antioch, the number of foreclosed homes fell by 1.8 percent, from 500 to 491. The percentage of Antioch listings that were distressed inched up, from 80.59 percent in May to 81.35 percent in June.”
“The silver lining in the situation, real estate industry experts say, is that the corresponding decrease in home prices in the area means foreclosed homes aren’t sitting on the market as long as they once were, and many qualified buyers are able to afford a home for the first time.”
‘The median sale price in Brentwood in June was $375,000, and in Antioch, it was $275,000.”
“A recent uptick in short sales in the past couple of months may indicate lenders are more willing to work with homeowners who have gone into default on their loans, said Margalit A. Ir, a mortgage lender with Bank of America in Brentwood.”
“Investment activity is also starting to pick back up, according to Brentwood city officials, but stricter lending standards are preventing investors from picking up properties they cannot afford.”
“‘The level of honesty in terms of lending right now has increased,’ said Carol Manning, a broker associate in Antioch.”
The San Francisco Chronicle. “The Federal Reserve cracked down on deceptive mortgage lending practices Monday, approving long-awaited rules to protect future home buyers from the abuses that helped spark the foreclosures crisis.”
“The regulations, which take effect in the fall of 2009, mandate that lenders issuing subprime-type mortgages must scrutinize borrowers’ ability to repay from sources other than the home’s value, verify their income and assets, and not penalize early payoffs of certain loans. For all types of mortgages, the rules ban certain deceptive or misleading advertising practices.”
“New Fed rules, most of which take effect on Oct. 1, 2009, apply to all lenders, not just those overseen by the Federal Reserve.”
“Representatives of the mortgage industry and consumer groups praised the overall intent of the Fed, but argued that it went too far and not far enough, respectively.”
“Ed Crain, VP of the California Association of Mortgage Brokers, said the industry is concerned some changes will be so restrictive that they would prevent deserving customers from obtaining loans. He specifically cited the regulations pertaining to income documentation and the ability to repay.”
“‘We may find that there will be some bad, unintended consequences,’ he said.”
From ABC 7. “Debbie Logan and her family bought a home with more than 3,000 square feet in the Inland Empire three years ago for a little more than $600,000. It was on an acre of land and zoned for horses, so they felt they paid a pretty good price.”
“‘That was a very good price at that time. We walked into a ‘Phase-1 fallout,’ so the other houses were going [for] over $700,000 in the neighborhood,’ said Debbie Logan.”
” But as we all know, the housing market took a nasty turn. Foreclosures popped up while home prices dropped. Now the Logan home is worth considerably less.”
“‘I would say right now, it would be worth maybe $350,000-$400,000,’ said Logan.”
“So Logan filed for a re-assessment of her property with the county on her own. And what a difference that made. ‘I expect my taxes to go down about $350 a month,’ said Logan. For the Logan family, that’s a savings of more than $4,000 a year.”
“Assistant Riverside County Assessor Frit Swain says the Logans aren’t the only ones saving money by taking advantage of a California law that allows property taxes to be reduced when market values dip.”
“‘Our office has looked at 270,000 properties over the past two months for reduction, just proactively on our own. Out of that, we’ve reduced over 200,000 of those,’ said Swain.”
“‘Lower property taxes for a few years to save money now when things are tight, that’s OK with us,’ said Logan.”
I just want to make sure that you guys see this letter I wrote:
Dr. Senator Feinstein:
A few months ago, I sent you a whitepaper detailing the dangers of the continuing relationship between Fannie Mae/Freddie Mac and the US taxpayer. The whitepaper revealed that the agencies (while deemed “too big to fail”) were actually too big to bail, since their at-risk debt load exceeds the current US national debt (which is huge). I extended to you the proposition that increasing GSE limits to $1,000,000.00 per house loan might introduce more risk to their balance sheets than they could handle. I backed up that proposition by reminding you that the median household income in the nation is only about $40,000/year, and the median household income in California is only about $50,000/year. That should support a median house price of $120,000 nationally, and $150,000 in California.
I also suggested that it might be unwise to place so much trust in a pair of companies that had been caught committing fraud, with one of them being caught again a short while later. I also questioned the SEC’s decision not to delist the corporations at that time, which was called for by the SEC’s own rules.
Despite the obvious carnage that would ensue from your decision, you sent me a response explaining that you supported raising GSE limits. I am curious as to why you thought it was OK to sell out America’s future. You had all the information you needed to make the right decision. I know because I provided it to you. As long as you are still a senator, I beseech you to shift your thinking towards long-term economic health instead of short-term, socialistic fixes that only serve to prop up an unhealthy business climate.
Not that I don’t applaud your efforts, but I’m sure you’ll only be rewarded with a nice form-letter stating how the Senatard fully supports keeping homeowners in their homes, and one of the ways she proposes to do this will be to raise the GSE limits.
What he/she said.
Great effort but waste of time. They’ll send out a form letter.
I have a few friends that work in these senators’ offices in DC. It’s totally a waste of time. They want to give you the illusion that they are listening. Like they give a cr@p besides being reelected.
They do listen - but it can’t be 1 person writing a longish letter.
If you are looking to actually get heard in Congress, you need to mimic what grassroots organizations do. We homeschool and are part of the Homeschool Legal Defense Fund. (No flames about this org please - I’m not happy about the stances they take on several issues but we thought it was important to join the group because of some personal experiences 3 years ago.)
The HSLDF is an organized bunch. They send out monthly updates and periodic alerts. They coordinate the efforts of homeschoolers down to (practically) writing the form letters for you and tell you how and when to send them out. If you are really that mad, *coordinate* a bunch of letter writers and phone callers. That will get a whole lot more attention than a singlar action.
Oops, sorry - this should have been further up.
Vermonter:
You can send the same letter to your senator if you want. I encourage all to disseminate it.
She already sent me that letter. I was incensed for days. Had to drink to get rid of it.
Welcome to our coping mechanism. At least, we can afford it.
Where’s NYCityBoy when you need him?
I’ve done the same thing in emailing my congresscritters, and gotten the same pap electronically with regards to other issues.
Of course, mine are the now-world-infamous Don Young and Ted Stevens, who only care about lining their pockets. I need to find out where they stand on Fannie and Freddie.
Big V her husband is involved with real estate. His name is Blum. Take a google.
First name is Richard.
Also Chairman of the Regents of UC.
I thought her husband was Robin Williams (she looks exactly like Nathan Lane in “The Birdcage”
I sent letters to my congressperson and two senators opposing a bailout about two months ago and received form letters acknowledging my concern about foreclosures. Not that I expect a personal response, but at least someone could screen the fact that I think the market should deal with foreclosures not my tax dollars. I’ve always been registered independent (mostly voted democratic), but I am increasingly becoming a libertarian.
But will you vote against Feinstein in the next election?
I can’t understand how she keeps getting re-elected without putting my extra-cynical hat on. Same old same old. California needs new representation in Washington - Boxer needs to go too.
You simply don’t know how to think like a Californian. (Don’t feel bad — even after living here for twelve years, neither do I.)
I’m a native Californian, and while I think I understand the politics, I don’t agree with most of it. Aside from the nutty state policies, California pays more than its fair share of Federal tax - we’re way net negative, while states with better representation are net positive in Federal money flow (taxes vs services and money returned through subsidies).
It really makes you wonder what the voters are (allegedly) thinking when election days rolls by.
Alaska is the most net negative when it comes to pork. Move here and actually get paid for having a pulse.
I think NM is largest net positive state for most $ back per $ sent to DC. DC itself is the largest net positive in the US.
they keep getting re-elected because of all the idiot tree huggers here in californica
Tree Huggers ROCK! : )
you effin hippy
stupid trees; who needs them, they just burn down eventually anyway
“I can’t understand how she keeps getting re-elected without putting my extra-cynical hat on.”
The Republican party continues to nominate candidates for statewide offices that are unelectable. Until that changes, most statewide offices will continue to be held by Democrats, regardless of the merits of some of those office holders.
I would venture to say that as long as the free money keeps flowing to the supposed needy they will continue to get elected. There is a huge base here that depend on freebies and don’t care who it comes from. Besides hidden voter fraud in california will always keep them in office. Anyone in califonia knows what im talking about.
“I would venture to say that as long as the free money keeps flowing to the supposed needy they will continue to get elected. There is a huge base here that depend on freebies and don’t care who it comes from.”
Exactly, and they’ll turn violent when the checks don’t arrive.
How about electing a different Democrat who actually has a clue? Gee, nobody thought of that yet?
No such creature exists.
No one has bothered to campaign against reelecting ANY politician. It has to start somewhere, with someone. I do it here in Florida. RNO.
They keep getting re-elected because the districts are zoned in favor of the incumbent. A few years ago, Californians had the chance to change the zoning to be more fair and objective but the politicians fought it, put out massive PR and the sheeple ate it and voted not to change the zones (or maybe it was part of the special election that they were bamboozled into thinking was bad and was scrubbed. Either way, it was a measure that should have happened but didn’t). That’s when we made our decision to leave the state. There’s nothing any regular, reasonable, of sound mind person can do in California to make a difference. That state has a long row to hoe ahead of it before it will ever be liveable again.
I just wish John and Ken would realize it and move to Colorado so we can finally have some decent radio out here!!
Hailey says, “They keep getting re-elected because the districts are zoned in favor of the incumbent.”
Uhh, we’re talking specifically about Senators in this thread. You might want to rethink that argument…
Oops. Sorry, my confusion.
Big V,
Congrats. Sound and articulate communication.
Do not stop!
I too feel discouraged, but seldom a day goes by when I fail to write (snail mail) or e-mail these…er…champions of people (snark).
I have an entire network of family and friends, and yes, oftentimes we do get the famed form letter for our efforts.
There is no room for complacency at this most historic time.
Best,
Leigh
P.S. didn’t run spell check, but it is a blog people!
Big - Inspiring letter.
Yeah, I get the point about form letter responses.
Yet, you made a pro-active plea for action.
I sit on my hands too much.
Someone once said that the clinical definition of insanity is repeating the same actions over and over, but expecting a different result. So it is with the American sheeple, who election after election support the same bought-and-paid-for politicos offered up by the Republicrat duolopoly, then shamble forth with their “I Voted” sticker and a vapid grin on their bovine faces.
Imagine if the only change from the status quo in the 2008 Presidential campaign, Ron Paul, would have garnered 20-30% of the vote instead of the paltry numbers he actually got. The Establishment parties and their MSM accomplices that tried to shut him out of the process would have received a severe shock, and realized their all-important goal of perpetuating their stranglehold on power and whoring for special interests was at dire risk of coming to an end as the voters emerged from their media-induced lobotomy. Suddenly we might have seen the prospect for real change. But instead, the American sheeple squandered a historic opportunity - perhaps the last one they’ll ever see. For that, they deserve every bit of the disaster that’s coming their way.
Sammy,
…then shamble forth with their “I Voted” sticker and a vapid grin on their bovine faces.
Great rant!
Hubby and I were driving N of Madison, and we were at a red light.
I look over and see this *human* (perhaps student, about 22 yo)? open mouth, redy to rev.
Yeah, not so common in youth, I guess. Big ol SUV of some sort (shiny too)!
Hubby is waiting for light to change, and is oblivious to the said individual.
Peels out, tires burning, all that happy stuff. I get a glimpse of his “Change” Obama bumper sticker.
I swear, I felt like I was in a Dali painting! (I’m melting)!
HAR! Guess you had to be there.
I vote we need a license to vote - the idiot factor!
Lawd - here’s to hoping HBBer’s have a good chuckle.
Best,
Leigh
EDIT:
I look over and see this *human* (perhaps student, about 22 yo)? open mouth, ready to rev.
Yeah, common in youth, I guess. Big ol SUV of some sort (shiny too)!
Slap to the forehead,
Leigh
Feinstein is useless. The only hope is to vote against her.
“RNO.”
“Re-elect no one.”
It is the only way out. The inexperienced newcomers will not be shrewd enough to screw us as much as Feinstein and the others can. Cut your losses. Vote out all incumbents.
Nobody for president 2008!!!!!!!!!
Man I applaud you for trying. But Feinstein is as corrupt as they come.
I don’t think that people should get a penny more than what was insured on their accounts. Does that make me mean? The FDIC insurance is critical, buy why should taxpayers subsidize people who wantonly ignore the well-stated and widely known rules? It’s not really different from bailing out FBs.
I keep thinking the same thing myself, then feeling guilty (is that mean?) for the same reason.
I beg to differ. There is a big difference, IMHO, between putting money in a CD (even if above the limit) and buying a house with a mortgage you don’t understand or knows can’t afford. Granted the CD investor should have done due diligence and made sure it is fully insured, but the two still don’t compare. One is investing one’s money, the other is taking on liability with a promise to make good on payment.
Yes, but without the FDIC insurance, a CD is simply a low-yield, low-risk investment. I’m pretty sure that everyone knows the FDIC limits, although I guess I might feel sorry for some recent immigrants who really didn’t know better.
Ignorance is no bliss in this case.
Yeah I haven’t used a spread bank in years but isn’t the FDIC decal on the front door? With clearly posted limits?
The elderly are particularly vulnerable on this. My mom is less sharp than in her younger days, so I keep on top of her finances. Bankers don’t give information about risks - they just want the money. They’ll also try to sell the elderly useless products with high fees, like variable annuities.
Exactly, my Mom was really taken care of at Union Bank with her whopping less than 1% CD and her stupid checking account. She should have gotten free checking because she had direct deposit but nope. And less than 1%, that’s beyond ridiculous. I was getting 6% when she opened that account.
Something isn’t it? I had a 5.2% cd renewed by my bank yesterday. Exactly half. I told them forget it. They are a C- rated place (bought my old bank a couple of years ago), I told them I could do better at my credit union and its rated A+. They did NOT like that but forget them.
I agree, there’s a difference.
If one has $101,000 in a bank, that means that person actually had $101,000 in cash and chose to put it there.
OTOH, if one buys a house for $101,000 with a large LTV loan then the only money (skin) they put in was their (paltry) downpayment. The majority of said house is the banks for 360 payments - only then will they actually have $101,000 in “equity”.
Houseborrowers don’t own anything - except the awesome privilege to pay interest for a declining asset.
RE: I don’t think that people should get a penny more than what was insured on their accounts
They won’t.
I applaud your effort Big V.
I sent letters years ago to my reps deploring the corruption in the appraisal biz.
Never got back squat.
In Maine, the only crisis issues which matter are when the Social Security entitlement checks don’t arrive on time-and whether or not the FEDS have provided sufficient subsidy funds to fill fuel tanks for the winter, so those getting the handout have sufficent cash for their lotto tickets, $6.00 per pack cigarettes, and maybe a visit to the slot machines in Bangor.
OMG!!!
$6/pack for smokes.
Jesus, I’ve been living under a rock - OMG!
Ya just can’t make this stuff up!
Leigh
try almost $10 per pack in NYC……Bloomberg is very anti smoking
Disclaimer: I had been drinking. I argued with the convenience store clerk here in the US Virgin Islands when they asked for only two American dollars for a pack of smokes. Whiskey Tango Foxtrot?! Then it occurred to me that booze and smokes being so cheap on-island are due to a right-wing plot to eradicate the natives.
Comment by hd74man
2008-07-15 17:09:14
“RE: I don’t think that people should get a penny more than what was insured on their accounts
They won’t.”
BZZT… you lose!
They HAVE been giving people money OVER the insured amount. I was there yesterday, with people that were being given up to half…as was promised to them.
Yea, but they should only be giving 100,000 insured + what they can liquidate from assets of the bank.
I guess even this is moral hazard, isn’t it? You have 100k of insurance, but instead the FDIC is paying more. I am 39 and have always known the words written on the FDIC stickers.
Not that I don’t feel sorry for the unsophisticated, often elderly, savers that are now getting screwed. Probably yet more bias against saving, come to think of it!
I called to see what the terms on my Indymac Bank CD would be and found they were unchanged so will leave it until it matures next March. The woman who answered the phone at the Thousand Oaks branch told me there were 150 people in the parking lot and police on site. I have never seen a real run on a bank before so was tempted to drive by but she advised me not to.
As of yesterday they were giving immediate access to insured funds and 50% of noninsured funds. If they sell the bank they will likely give access to 75 or 80% of noninsured funds. However, if there are another 5 Indymacs the FDIC will be insolvent and I wonder if I should just withdraw my CD afterall . . .
Wouldn’t any losses be considered capital losses against any stock market profits?….. or they could write off $3000 per year on their tax forms…
Anything extra they get comes from liquidation of the assets of the bank (insolevent doesn’t mean the assets are worth 0 (just less than the liabilities). Depositors rank very high on the creditor list, so they’re likely to get most of their liabilities paid from the asset disposition.
Congress could agree to make them whole, but like the S+Ls it would take a special provision passed after the fact (so everyone knows it’s a gift).
don’t bother.. i’ve tried.
Most people around here prefer to believe the FDIC is paying depositors out of pocket from it’s fund, and that a failed bank has no assets to sell.
13:1 LEVERAGE
What part of that don’t you understand?
don’t tell me.. tell the FDIC. They plan on selling that 13:1 leveraged bank’s worthless assets to someone in about 90 days or so.
Or go warn whoever plans to buy all that worthlessness..
What does that have to do with the discussion? The question at hand is whether the FDIC will dip into it’s own funds after all is said and don to make insured depositors whole.
You are SO naive.
Don’t you know how the system works?
They go to their buddies and sell the properties in bulk.
10-20 cents on the dollar. Then those 10-20
cents are dilluted even further by the attorneys that represent the class action suit. Throw in all the other costs of doing business and by the time they settle, the individual account holders will get a check for threes cents.
OK OK … I exagerate…. they’ll get a check for $5 or $6. Still…. that’s nowhere near
“get most of their liabilities paid from the asset disposition.”
PALEESE !!!!
Hey, I finally got a web page from weissratings.com! (It was not responding earlier, see my previous posting in the bit bucket). I’m thinking a lot of people are looking for safe(r) banks right about now.
Can anyone think of a bank that pays decent interest on money market accounts and is probably solid? The only bank or thrift in California that makes the Weiss “strongest” list is Farmers & Merchants. Unfortunately, all of their offices are south or east of Torrence, not exactly a short drive…
BankRate has a really good rating, called the Safe and Sound rating. They were negative on IndyMac long before the collapse.
http://www.bankrate.com/brm/safesound/ss_home.asp
Big V, Awesome site, thanks a bunch.
Try credit unions. But ask questions. Who would they be loaning your money out to. I have an account with the University of Southern California Credit Union. They’re double insured (government & private).
check out Salem Five Bank in MA.
non-publicly held, which is privately owned (I think - 99% sure)
FDIC insured
DIF insured as well. DIF is a MA bank insurance fund. Not all MA banks belong to it. It covers amounts over the FDIC limits
They pay better rates than most banks.
They have online banking, etc.
check them out at http://www.salemfive.com
sm_:
Union Bank of CA or Bank of the West.
For ratings:
http://www.bauerfinancial.com/home.html
~Misstrial
http://www.bankrate.com/brm/safesound/select.asp?insttype=0
“Stanley emerged from the bank, cheering and holding a check. Because she had multiple beneficiaries on her certificate of deposit account, she was able to get the money, which had been set aside for her son’s education.”
“She called her husband on her cell phone. ‘I’m out,’ she told him. ‘I got it all.’”
So this is the secret, put multiple beneficiaries on the account? She sounds incredibly lucky, if not incredibly smart.
No, you get $200k for a bank account with joint holders. $250 for an IRA. I do not believe there is any rule about the number of beneficiaries.
Correction: I heard on the radio today that beneficiaries matter if you have a revokable trust.
but if anybody dies then the limit bounces back to $100 or $200k, I forget. Painful, keep your trust fund babies safe!
The people you see at the line are the ones who are always several steps behind and still not fully informed. I mean it would be riskier now to take it out of Indymac and give it to another bank, since FDIC has already made good on its guarantee. Now you are going to go through the same thing again potentially with another bank?
Wait until FDIC finds a buyer and the evaluate the buyer bank to decide on your next step. There is no reason to stand in line for 8 hours now that FDIC has step in.
I disagree.
Now that the FDIC has stepped in, you might as well get it all out. Take it now. There are many other “reasonable” places to stash it. Even spread it around.
FPSS,
“Deposits larger than $100,000 are being scrutinized by officials and many of the assets are being held until they are investigated”
This is America, isn’t it? Funny, sounds like what happened to George Jung’s deposits in the Bank of Panama? Either way, it looks to me like the bank is going through some of these accounts to see what of it came from HELOC bubble bucks on 2nds THEY wrote!
Whatever. Who gives a f**k about the details?
Take the money and run.
“Hey Potter is giving you .50 cents on the dollar. That’s more than nothing”…..
cougar91…
You really need to read that book I mentioned the other day, “The Crowd”
It will change your way of thinking, hopefully.
Thanks Alad,
If you are so inclined, I’d love to hear from you -
barbluvsong at yahoo dot com
You’ve helped us more than words can say - as many HBBer’s shed their knowledge unconditionally.
Best,
Leigh
Leighsong
Glad to have been of assistance…
It’s beginning to get veeeeeery interesting
We waited 8 hours, as did a LOT of other people, BECAUSE we DO NOT trust any part of our government. If you want to leave YOUR money with them and put them to the test….be our guest.
I’m reminded of that saying that saying
“there’s a sucker born ….. “
Um, ms, sorry to give you a hard time, but in your case the government is far more trustworthy than the “bank” you trusted with your money.
RE Hobbyist…
I TOTALLY agree with you.
That is the ONLY reason I had my money in there to begin with.
However, do the math. 52 billion in FDIC reserves, combined with a wobbly- teeter-tottering, hanging by a hair banking system, in addition to a whole lot
of VERY “nervous about their money” people ……..
After running the numbers…. answer this:
would you want to be the last one to ask for your money back?
ms:
They will print the money if they have to.
YES …..
That’s definitely crossed our minds
But AGAIN…. where is the ‘guarantee’ they will ?
Would YOU want to bet on that ….
and lose? They’ve already got the printing presses
running 24/7 !!!
I guess we’re just not THAT big on risk.
We’ll take our money NOW….
thank you very much!
You pay taxes, right? The foundational purpose of the USD is be the mechanism for remitting taxes to the government. If the USGOV owes you $, it’s like a reverse tax lien.
I don’t know the mechanics of all their extensive and purposely complicated rules… BUT what I DO know is that for a VERY long time now, they’ve been breaking A LOT of rules!!!!
“Ed Crain, VP of the California Association of Mortgage Brokers, said the industry is concerned some changes will be so restrictive that they would prevent deserving customers from obtaining loans….”
The hell he’s worried about restricting “deserving customers” - he’s just thinking about commissions drying up.
~Misstrial
Yep.
But “derserving” he means unqualified who want to buy now.
The taunts about us waiting on the sidelines haven’t been as crude as they were two years ago…
Got Popcorn?
Neil
“Ed Crain, VP of the California Association of Mortgage Brokers, said the industry is concerned some changes will be so restrictive that they would prevent deserving customers from obtaining loans. He specifically cited the regulations pertaining to income documentation and the ability to repay.”
“‘We may find that there will be some bad, unintended consequences,’ he said.”
What’s bad about commissions for cretins drying up? What’s bad about deserving customers only being put in properties they can afford with loans they can pay?
“‘I can say that depositors will get priority to any money left from the sale of the bank,’ he said. ‘So those people in the lawsuits would be subordinate to depositors. And the shareholders will be at the end of the line.’”
I find it ironic that the bank in good times operates with complete indifference to the interest rates for depositors and sucks up to shareholders, yet when it fails the shareholders get to be at the back of the line.
Does this apply even to those with preferred stock?
That’s because corporate structures are designed for this, the indifference is due to the fact that bondholders/depositors will have priorities in a liquidation, which is their protection. The shareholders have control of the whole in operations because if it fails they will all be wiped out.
Preferred ranks in between the two, so once all creditors are paid out preferred gets their full investment (par value) before common gets a penny.
Typically preferred gets some payment unless it’s a complete disaster (like enron or most of the mortgage companies). The creditors won’t get everything in those cases so the shareholders get nothing.
“cracked down on deceptive mortgage lending practices Monday, approving long-awaited rules to protect future home buyers from the abuses that helped spark the foreclosures crisis. The regulations, which take effect in the fall of 2009″
This shows just how political the situation is. If Congress meant business these regulations could be law within 30 days!!!
I actually hear it is not that easy to get a loan now without income verification and a substantial down, so perhaps this issue is moot.
test comment
RE: Cops tell IndyMac customers to stay calm or face arrest.
http://www.dailynews.com/breakingnews/ci_9887404
Bet all those northern city welfare recipients don’t stay calm when the fuel oil trucks don’t show up this winter, to deliver “all dat dem dere freebie sh*t” .
“James Sherman, an IndyMac customer with more than $100,000 in the bank, was hoping to get 50 cents on the dollar above the federally insured limit, with the remainder of his money possibly being applied to his mortgage with IndyMac.”
“‘This is my life savings here. I feel really horrible,’ he said. ‘What do you resort to now, putting money back in the mattress?’”
________________________________________________________________
The time has come to decide what to do with your money…
Mattresses are not an option, and neither are other banks.
What sort of plans do you have?
I’m thinking 3 month TBills
It’s amazing how much denial is out there. After what happened last Friday, there should be a run on WaMu right now. But, no worries. I don’t get it.
“bought a home with more than 3,000 square feet in the Inland Empire three years ago for a little more than $600,000. It was on an acre of land and zoned for horses, so they felt they paid a pretty good price.”
Yessiree, good as in CONSIDERABLE price. Just wait till you try to sell the property and find that there are a considerably few buyers for horse or farm property, especially in a normal to down market!
RE: zoned for horses,
The shelters here in New England are being over-run with people who want to get rid of their nags because they can’t afford to keep them anymore.
Beantown Glob story told about one woman had adopted 15, and it was costing her $6k per month to take care of them.
15! -You gotta be mentally ill.
Sell’em for dog food.
Not if any of them are draft horses!
With the price of diesel, the beer has still gotta get through.
Homer Simpson: “With today’s gas prices, we can’t afford not to have a pony!”
“Angles said he lost $80,000 on the heels of Enron’s 2004 collapse and, as a result, has soured on financial institutions and their leaders. Nevertheless, he was confident IndyMac would not fall.”
“‘You never think it’s going to happen here, but the reality is it hit home,’ he said. ‘And home is now in Burbank.’”
++++++++++++++++++++++++++++++++++++++++++++++
I wonder how it feels to be struck by lightning twice. Los Angeles truly has become the City of Angles. An assist to aladinsane for the angle.
FYI, we have been having comment server breakdowns all day. I apologize, the data is just getting too large. I’m gonna have to do something instead of these constant reboots, etc.
Call CFC and Indy, I bet they have some used servers for sale
Ben,
Does this have to do with the length of our posts, or are there too many people posting?
Move your server to NearlyFreeSpeech.Net, which is what I use. I’ve had my sites slashdotted before and they didn’t even burp. Price is great, too.
Guess where Brian and I were yesterday?
YEP! We were at the Manhattan Beach Branch of Indy Mac….
waiting in line from 10:30am to 6:30pm.
We were able to get all our money out.
They did not place a hold on any of it…..
HOWEVER, others weren’t so fortunate!!!
“The regulations, which take effect in the fall of 2009, mandate that lenders issuing subprime-type mortgages must scrutinize borrowers’ ability to repay from sources other than the home’s value, verify their income and assets, and not penalize early payoffs of certain loans. For all types of mortgages, the rules ban certain deceptive or misleading advertising practices.”
“New Fed rules, most of which take effect on Oct. 1, 2009, apply to all lenders, not just those overseen by the Federal Reserve.”
++++++++++++++++++++++++++++++++++++++++++++++++++
Come again? How about Aug. 1, 2008? Good luck trying to enforce those rules. Misleading advertising is what built this great country.
When I first saw it, I thought it read Oct of 2008. NEXT year these go into effect? That’s not closing the barn door after the horses got out, that’s TALKING about maybe WALKING DOWN to the barn to look at the door and discuss how best to go about closing it.
I just love this recession - I just picked up a huge Ethan Allen oak entertainment center from the Salvation Army for $150 - almost mint condition!
RE: I just picked up a huge Ethan Allen oak entertainment center from the Salvation Army for $150 - almost mint condition!
No place to put that monster in a 1 bedroom efficiency after losing your McMansion’s 24 x24 family entertainment room.
Either that or there’s was no room left in the UHAUL rental.
You can get all you want FOR FREEE IN NYC…….. FREE La girl FREE…Thousands of dollars of High Quality stuff FREEE
The only catch is 9 times out of 10 it is in a 5th or 6th floor walk up apartment. And you have to move it.
Not here, there were at least two pairs of Mexican guys sitting out front with their pickup trucks, that’s all they do all day, sit in front of the thrift shop and move furniture that I guess FBs lost and bottom feeders like me buy.
“‘That was a very good price at that time. We walked into a ‘Phase-1 fallout,’ so the other houses were going [for] over $700,000 in the neighborhood,’ said Debbie Logan.”
” But as we all know, the housing market took a nasty turn. Foreclosures popped up while home prices dropped. Now the Logan home is worth considerably less.”
“‘I would say right now, it would be worth maybe $350,000-$400,000,’ said Logan.”
Sounds like it’s time for a Logan’s Run.
Oh man, remember that movie?
A whole lot of people’s loan’s just turned flashing and red this year.
“Debbie Logan and her family bought a home with more than 3,000 square feet in the Inland Empire three years ago for a little more than $600,000. “‘I would say right now, it would be worth maybe $350,000-$400,000,’ said Logan.”
“So Logan filed for a re-assessment of her property with the county on her own. And what a difference that made. ‘I expect my taxes to go down about $350 a month,’ said Logan. For the Logan family, that’s a savings of more than $4,000 a year.”
This has to be the FB Quote of the Day. Their house is down $200K but what a relief to be saving $4K a year on property taxes.
Unbelievable. The stupidity never ceases to amaze me.
They’re making the best of a bad situation.
Hey saving $4k a year is something. In their shoes I’m quite sure I’d be filing for re-assessment too!
Hey Ben, I read how you’re starting to check out RE auctions, when do you think it will be time to cash in gold and start picking up REOs? I’m thinking 2010?
lainvestorgirl: you finally sound happy!
I still dont get it. How could a ton a risk assessment professionals at banks let this happen? Its not like they have not seen before what happens when people cant pay their mortgages.
I believe a bailout will happen for Fannie/Freddie, the taxpayers will take it in the shorts, and the rich bankers will start the game all over again. So what, they miss a 50K bonus on top of a 250k salary for a year or two, then back to the party.
This country is so crooked that it just stinks.
Imagine the reaction you would have got just a fortnight ago, had you offered to buy Sherman’s savings above $100k, for 50 Cents on the Dollar?
He might have called the police on you…
_______________________________________________________________
“James Sherman, an IndyMac customer with more than $100,000 in the bank, was hoping to get 50 cents on the dollar above the federally insured limit, with the remainder of his money possibly being applied to his mortgage with IndyMac.”
“‘This is my life savings here. I feel really horrible,’ he said. ‘What do you resort to now, putting money back in the mattress?’”
Following the news lately almost seems comically unbelievable. Its kind of like reading Ayn Rand’s Atlas Shrugged. If you havent read it, a socialist government is making more and more demands on the industrial companies. The leaders of these companies one by one disapear and decide to stop working, just to have their hard work appropriated for the public good. As the industrial leaders disappaer society slowly slides into chaos. And the government leaders make lots of speechs about how its the fault of the industrial leaders for leaving. and they implement policies that sound good to the people, but cause the economy to get worse and worse.
Here are 3 examples of really bone-headed things said or done by high-up government leaders, just this week. There are countless more in the last 2 years.
1) today the SEC wants to crack down on naked shorting of FNM and FRE. This is supposed to illegal for all stocks, why dont they crack down across the board? Or better yet, why dont they come up with a real plan for Fannie and Freddie. Is it government gauranteed or isnt it? Make a decision one way or another and stick to it. Save housing or save the US dollar; thats the decision.
2) Sharon Baird, head of FDIC calls for a moratium on IndyMac forclosures. Foreclosures are the way to preserve something from a bad loan. If the loan has gotten to foreclosure, there has allready been 6 months of missed payments and the bank has done significant public filings to get the foreclosure going. Her mission is to refund deposits up to the limit, and preserve as much as possible for the other debt holders. Nowhere in the FDIC mission is to prevent foreclosures.
3) The entire airline industry sent a letter to congress asking them to do something about speculation in oil. ALmost all the members of the congressional comittee seem to think high oil prices are caused by speculation. And they are telling the american public its caused by speculation and not supply/demand. T Boone Pickens goes before congress and says yes it is supply/demand and we need a serious plan and we need it now, and we cant drill our way out of this problem. He is politly thanked and escorted out.
Is this reality or a new Ayn Rand book. Scotty beam me up, theres no intelligent life down here.
It’s going all according to plan…
“T Boone Pickens goes before congress and says yes it is supply/demand and we need a serious plan and we need it now, and we cant drill our way out of this problem. He is politly thanked and escorted out.”
Most of Congress can kiss my nekkid patootie (not an attractive image, I’ll grant you). It’s folks like T. Boone Pickens that carry the rest of society on their backs. When good plans come, they will be enacted by private citizens with the guts and carry through to DO something about it. For those of us who aren’t where Pickens is, we need to support folks like him.
What a stark contrast Mr. Pickens is compared to the financial titans. It’s nice to see a billionaire with a conscience, willing to put the general welfare above his cronies’.
“The entire airline industry sent a letter to congress asking them to do something about speculation in oil.”
Was this tripe attached to their formal request for a second bailout this decade? I hope not, because with each bailout their service gets worse.
The legacy carriers need to go bye-bye, the congresscritters ought not to foster any more obsolete/failed business models.
.. just a sample .. a hint of the potent weaponry govt and industry are capable of throwing at an economic slowdown. We ain’t seen nothin’ yet.
San Diego Home Sales Continue to Drop
Jul 15, 2008
KPBS News
San Diego home sales continue to drop when compared to numbers from a year ago. San Diego based Dataquick Information Systems says just over three thousand homes changed hands last month. That’s down more than 12 percent from last June. Dataquick’s John Karevoll says the only thing he can say for certain is that there’s uncertainty in the housing market.
Karevoll: There’s turbulence, there’s volatility, there’s all sorts of things that we just aren’t able to identify going on. The market is clearly way off what it was two years ago.
Karevoll says the region’s average home price fell to $380,000. That’s off more than 25 percent from last June’s numbers.
WOW!
Back to $380k
Yeah, it’s a crazy number. I have quite a few friends who earn $160-$180k household, fairly stable, too. Just getting to the point that they can finally buy, but I’m helping them refrain until it falls quite a bit more.
Hi All Bay Area HBBs!!
I am working on putting together a meeting of the minds on Saturday, July 26th at a still undecided location in SF. Due to all the “interesting” things which have been going on lately, I figure it will definitely make for interesting conversation!! If you are interested in attending please send an email with number of attendees to bayareabubble@gmail.com. I am still looking for a location so any recommendations would be greatly appreciated!! Come join everyone for a fun afternoon of good food and insightful discussion!!
I gotta say that I do feel a little sorry for the parties that are losing money
by this bank failure . It wasn’t as if these people were getting big money on these accounts ,and I’m sure that a risk factor was not in their brain . When you look at how the MSM and the business channel cheerleaders do everything but tell the truth to people ,they just go about their business thinking everything is alright . Didn’t BB and Paulson in essence say in the last public meetings before Congress that everything was alright because of the Bear Stearns
bail out ? It’s funny that not very long before a major Bank fails they start talking about some banks could fail . That was a little late for these people
who put money in what they thought was a safe bank .
I guess my bitch is all the BS cheer-leading that goes on that leads the public into believing everything is alright ,so yes ,I can understand how some of these depositors were in the dark . No excuse for having more in the bank than the insurance covers however ,but I would rather bail these people out than the lying loan borrowers .
“I would rather bail these people out than the lying loan borrowers .”
At least the depositors actually had the money - the houseborrowers had nuttin’. Put another way, what happens to outright owners? If an outright owner’s house price declines it is their money they are losing - not the bank’s. Imagine the outrage from the FBs if anyone ever proposed to make outright owners whole.
Yes edgewaterjohn ,some of these people saved this money for years .It wasn’t as if these people were big shot investors going for the highest yields. When I think about a borrower putting no money down ,than lying on the loan application ,than walking and leaving the house in shambles ,and not getting any penalty ,verses the saver who is going to lose a lifetime of savings ,it’s just not right .
People put up deposit funds in banks with the expectation that lenders are not making bad loans . No accountability on the part of the whole system that created this mess . Than I see a special on TV about the Hedge Fund guys who make a billion or more a year and have 25 homes around the world and have so much money that some have a fleet of planes ,I just get sick .
Now we are seeing up close and personal the loss that really happens to real people because of this fraudulent housing market ,verses the gamblers who didn’t have anything invested ,but were just getting in on the mania . And now in July of 2008 you finally get the dream team of Paulson and BB talking about regulations ,when this bad lending was apparent in 2005. These guys aren’t very quick with real remedies ,but they sure want blank checks to carry out bail-out’s for parties of their choice .
I agree. People here tend to rail on others for not having savings. The people in these stories had savings, or so it appears, unless this is fraud or HELOC money (although I don’t see the benefit of paying 8% to receive 3%).
It does seem like they are going over large deposits with a fine toothed comb just to be sure, though.
“I guess my bitch is all the BS cheer-leading that goes on that leads the public into believing everything is alright ,so yes ,I can understand how some of these depositors were in the dark.”
Look, real information is actually out there (hit F5, for example).
You can’t make people be interested in their own welfare. Winston Churchill said, “The best argument against democracy is a five-minute conversation with the average voter.” Hundreds of years ago the US was founded by people that were frightened that democracy would descend into rule by an ignorant mob. Ancient Rome had senators - in part recognizing that not everyone could be trusted with a vote.
CNN gave cast the pearl of wisdom that people should keep their deposits to under $100k. I said out loud, “Who doesn’t know THAT?” and three people in the room said that they had never heard of the FDIC or the $100k limit on insurance.
What I find astonishing is that people actually WATCH the news that is delivered to them. I could list half a dozen literary or historical examples of MSM being used for purely propaganda or marketing purposes. Yet, here, chanting “USA #1″, where we know that an obscene number of people can’t find Florida on a map, people firmly believe that they can watch news on TV to “be informed”.
So what do you propose? We recast the human mind to think critically and actively seek the truth? We inject the desire to be intelligent and healthy rather than fat and dumb? Best of luck, man. Best of luck.
Delete all the cable news channels from your TV. It’s a form of self defense.
To rudely respond to my own post - just wanted to add that I’m not trying to disagree with you. I agree that depositors should be in line before borrowers. I just went on a late night tangent when I read the comment about the MSM and people not having a clue about the world.
Was watching the PBS Newshour, and they had this banking expert named Bert Ely on to tell all that there is no recession, and that banks are sound.
I broke into unconTROLLable laughter…
I wonder if the depositors got a early withdraw penalty on the CD accounts they cash in before the term was up ?
No, there’s no penalty.
With Chucky Schumer running around loose, his loose lips proving capable of causing a run on a bank, the banks are not at all safe or ’sound’.
“Loose lips sinks banks”
Maybe he did this to get support for a bailout plan. He’s not Machiavellian at all…
Anyone else amazed that these people are giving their full names in interviews? Might as well send an engraved invitation to all would-be burglars out there.
I was also amazed at how freely they advertise how much money they have.
It’s one thing losing 200 grand on a dubious real estate investment, but losing it because it was sitting in the bank, minding it’s own business?
_______________________________________________________________
“‘We just want to make sure we get our money, but they’re not guaranteeing it right now,’ said Brandon Heinz of Corona del Mar. ‘There’s a lot of fear and anxiety here. You can feel it.’”
“He said he had $600,000 deposited in the bank in a joint account but the bank was only insuring $400,000. As soon as possible he wanted to take all of it out of the account.”
ah, it’s so rare that stupid rich people really get the shaft in this world. Delicious.
“It’s one thing losing 200 grand on a dubious real estate investment, but losing it because it was sitting in the bank, minding it’s own business?”
And what was the bank doing with that money? Investing in dubious real estate deals.
This is going to be a wakeup call for a lot of people. Most likely will turn out good for gold.
Ouro,
If your out on the blog tonight I have another name to add to the pictures from the HBB get together in San Francisco with Ben. Please post the link to the pictures and I will tell you who’s pretty face belongs to sfbubblebuyer.
So, does anyone think that the people who got their money out of the failing bank are going to become stock market investors now ? Where do people put their money ?
Yesterday, Crammer said in summary that taxes will have to be raised to bail out the banks . His comment was in response to a political hack that was talking about lowering taxes .It seems to me that the public is not very aware of what all these bail-outs mean in terms of the final toll .
higher taxes are going to be great for home prices, remember, every $1000 of after-tax annual income supports ~$15,000 in mortgage principal!
“James Sherman, an IndyMac customer with more than $100,000 in the bank, was hoping to get 50 cents on the dollar above the federally insured limit, with the remainder of his money possibly being applied to his mortgage with IndyMac.”
Now there’s a mindbender for you.
As a depositor, James is a creditor to the bank.
As a borower, James is a debtor.
How does part of the credit owed to James get discharged by an amount not matched by a discharge of debt? Clearly, the amount not being paid to him through FDIC needs to be credited to his mortgage.
‘The median sale price in Brentwood in June was $375,000, and in Antioch, it was $275,000.”
Who would want to live in Antioch? Too many idiots with their holy hand grenades and inability to properly count to 3.
Question: Can you get your $100,000 out in cash? I mean FRNs? Pictures of dead presidents?
If you don’t trust the bank enough to leave your money on deposit, why would you take their check?
I realize banks have little cash on hand. Understanding this, I accept their check. Now if I turn around and try to cash it, and they refuse, is it a bounced check? Is it check fraud? Should I call the police? Are their penalties and interest?
Sorry - I always wanted to know the answers to these questions.