Discussion in 'Wall St. News' started by MrDODGE, Mar 4, 2009.
This could be catastrophic.
That's just great. So we have three choices:
A: Keep on going like we are and let the FDIC fail, leading to bank runs
B: Raise fees on banks, which makes banks more likely to fail, which leads to the FDIC failing, which leads to bank runs
C: Drop FDIC insurance on the weak banks
So it's probably not a good idea to have money in a bank that is a penny stock, depending on who the government picks to bail out.
Start picking out the smaller, local/regional banks that are in good shape...and especially credit unions.
That way if the FDIC fails, you're money at least is still relatively safe.
I think we have about a 75% probability of at least one bank run this year (nationwide run on multiple major banks). :eek:
FDIC could NEVER handle a run like that......so it would be even more "print money" time. :eek:
This of course would then bring in a FED directed reactionary forced "banking holiday" of 3 to 7 days......WHAT FUN! :eek:
No ATM's.....No Debit Card/Credit Card transactions.....No bank withdrawals.....No ACH.....No nothing! If you did not have cash on hand when this type of event took place you would be &^^$%#$$%%^&^!!! :eek:
You guys dont get it, the FDIC could be a recipient for TARP funds. It would be recapitalized with a stroke of a pen, I have no doubt that if problems were to happen Geithner would drop another $100b to the FDIC
BTW, 100 billion will in no way cover a nationwide bank run......not even close.
Infuckingcredible! Is the government intentionally trying to collapse the banking system?
CNBC's Maria Bartiromo interviewed BOA Ken Lewis in Sept 08 and here is Lewis' startling back of the envelope assessment.
"BARTIROMO: SO RIGHT NOW WE HAVE, WHAT, 9,000 BANKS? 9,000 BANKS IN THIS COUNTRY.WHAT WILL YOUR PREDICTION BE AS FAR AS HOW MANY THERE ARE IN THE NEXT FIVE YEARS?
LEWIS: GOSH, I HAVEN'T THOUGHT ABOUTTHAT. MAYBE HALF. "
And we should listen to Lewis why?
I agree that he's sorta the expert, but he has since demonstrated some significant flaws in his analytical and decision-making capabilties. As a result I try not to attach too much weight to his opinions and actions.
Unless Geithner pulls a "Lehman" on the FDIC and argues he has no authority
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