Banks blowing up - How to survive?

Discussion in 'Trading' started by HedgefundTrader2, Jul 26, 2008.

  1. Indy mac blowing up was the first shot. Just do not get comfortable placing those hard earned bucks over $100,000 in any single account. Today 2 more banks blew up here is the link :

    CARSON CITY, Nev. (AP) -- The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators. The banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.

    It ain't going to end here. Your deposit institution may not be telling you anything. They have have those nice red posters hawking 3.5 % CDS and what not, inside they are getting killed by this economic tsunami.

    The solution:

    Create as many entities as you can and place no more $100,000 in each. Read website as how to get extra protection. Make sure its a legal entity with its own TIN numbers and a street address and clean incorporating papers. Nevada LL Cs are a great vehicle for opening bank accounts and stashing cash since you cannot plow them into stock market any more or real estate. They costs about $350 and can be formed overnight. They create complete privacy and iron clad protection from potential litigators and sue happy attorneys.

    When things get tough suddenly lawsuits emerge checking out your assets. Use a wisely selected asset protection plan in place. A potential litigator can end up in a complete nightmare if he tries anything on you.

    Go overseas, Swiss bank accounts. Australian bank accounts. Possibilities are tremendous. Just do not stick your money in this garbage can.

    Look at the charts of publicly traded banks like and others. Are these stocks going single digits? That should raise some hairs on your neck if you are a smart cookie.
  2. Indymac alone cost FDIC 10% of its bailout funds. It will get real bad when FDIC runs out of funds and the Feds have to help it out.
    To survive? Go short or use puts on bank stocks.
  3. How exactly does the FDIC sell assets before the bank is taken over? Is it a public bidding process between the banks, or does the FDIC decide who is right bank should be.

    If it were a invitation to all the banks, it would seem to me that the banks could then tell their hedge fund buddies to short the shit out of the bank since takeover is imminent.

    Latest rumour is IndyMac wasn't even on the FDIC watch list. The FDIC is greatly underestimating the amount of banks in trouble.

  4. Puts are not going to protect investors cash. This what I am telling all my people around me. Divide your cash in 100,000 units and secure it with a Limited Liability companies. Nevada LLC are a way to go. Your state my have its own LLC system use it. Creditors cannot reach those assets if devised correctly. It will frustrate most ardent litigators and lawsuit fighters. Bullet proof your assets in these hard times when you are most vulnerable to lose them.

    I wanted to share this here for free.
  5. Digs


    Put your money in JP Morgan, this is the Fed dirty tricks bank, no way is it going bust.
  6. Nahh. just buy some foreign companies stocks, and put remainder of crash in solid, FDIC insured banks, with maximum denomination's of 100k.

  7. Not in your name dude. Anything in your name is a target. We will go through some stormy weather - which is coming now..... just get ready for it.
  8. i dont understand, why not in your name? up to 100k you are protected.
  9. When you protect yourself you should become bullet proof. Nothing can be taken from you.

    If you owned this in a LLC or some type of entity, you cannot be easily attacked by "vagrant financial predators " who are ready to undo people these days. That can be your taxman, gardener, tenant, auto collision attorney , your own wife, or your own business partner o anyone who knows you have cash.... Anyone with 100K cash in these dire times ---is simply walking around with a bullseye on his head.

  10. I mean what kind of country this becomes when its financial institutions and deposit holders are going belly up?

    You think this is limited to few banks in next 2 years ?
    #10     Jul 27, 2008