U.S. Bank ' to fail within months '

U.S. Bank ' to fail within months '

news.bbc.co.uk

The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months

(visit the link for the full news article)



[edit on 19-8-2008 by L.HAMILTON]

Mr. Keneth Rogoff a former International Monetary Fund is quoted:" We're going to see a whopper, we're going to see a big one, one of the big investment banks go under."

news.bbc.co.uk
(visit the link for the full news article)

Respectfully, I think you need to change the title of your OP. The article says "U.S. bank" but does not name a specific bank. Your title says "U.S. Bank", which could imply U.S. Bancorp - a highly reputable bank backed by Warren Buffett's Berkshire Hathaway and, by all accounts, stable.

No need to freak people out, the situation is bad enough as is...

Yes another "US" "bank" may go under.
But like the above poster states, it is not going to be "USBank".
I think we will see way more problems in the financial crisis.
More problems because of rich fat cat directors pushing agents to give out loans to people who could never pay them back.
People earning 30-40k a year being allowed 1.9 million in mortgages is absolutely criminal.
I guess its the design though in part of the whole financial monetary system.
Because to boost the economy you need to be giving out more loans.
And what happens when the people who can afford them don't need anymore loans?
You give them to people who cant afford them to make it look like people are still needing lots of loans.
And then WHOOPS! We lost all that money!

I was just reading something the other day. I would like to point it out, but I forget where I saw it. The person said something interesting though.

This guy said that at some point, the illuminati would begin to purposely bankrupt their corporations to cause unemployment, civil unrest, and the collapse of the american economy. I think this guy was speaking in the 70s, so it may have been John Todd.

My bet is that Lehman Bros. will be the next to fall.

I think the real bloodbath will occur after the holiday retail season. When that falls flat, alot of retailers who are hoping against hope that the holidays will bail them out will fold. There will be a new surge of business bankruptcies, commercial defaults and lay-offs. We're not close to being out of this yet.

I think what you say will be the trigger to the next meltdown. In my opinion, the next wave of REAL bad news will come next year when the Alt-A loans begin to reset. When that happens, there is a good chance that many of those loans will see significantly higher monthly mortgage payments.

When this happens, it will push the people that are barely hanging on into foreclosure. Even if this is just 5% of the Alt-A community, that would be disasterous to the financial market.

Originally posted by jtma508
I think the real bloodbath will occur after the holiday retail season. When that falls flat, alot of retailers who are hoping against hope that the holidays will bail them out will fold. There will be a new surge of business bankruptcies, commercial defaults and lay-offs. We're not close to being out of this yet.

I think it will happen before that, when the FED is forced to raise interest rates because of inflation. That will be the end of any hope for recovery.

reply to post by mythatsabigprobe


And the steep rise in the Producer Price Index that was released today will ensure that.

biz.yahoo.com...

Wholesale inflation surged in July, leaving prices for the past year rising at the fastest pace in 27 years, according to government data released Tuesday.
The Labor Department reported that wholesale prices shot up 1.2 percent in July, pushed higher by rising costs for energy, motor vehicles and other products. The increase was more than twice the 0.5 percent gain that economists expected.
Core prices, which exclude food and energy, rose 0.7 percent. That increase was the biggest since November 2006 and more than triple the 0.2 percent rise in core prices that had been expected.

[edit on 19/8/2008 by kosmicjack]

Warnings about the US economy crashing has been posted here since late 2007 I think... so far, nothing has happened. So while I took these posts seriously in the beginning, its starting to wear off.

I posted this story last night, but oh well looks like the discussion is going to go on here. (Rant on-I wish people would at least check the first page of Breaking before posting a new thread-Rant off.)

Hereis a link to the thread I started with my take on this, a couple of corraberating sources and links to other ATS threads.

The Alt-A impact, though initially scheduled for next year and beyond, may be starting as soon as 3Q. Many of those Alt-A products had teaser rates, that can cause a negative equity position. Those loans often have a component to them that when the LTV (loan to value) is greater than 125% it resets regardless of when it was scheduled to. While it can be argued that the sub-prime debacle was due to political pressure to lend to certain groups, the Alt-A is a wholly different ballgame. The proliferation of Liar Loans (stated income), exotic mortgages sold to people who could have qualified for more traditional ones, and good credit but poor income borrowers leads me to think that sub-prime is going to be a blip compared to what's to come.

reply to post by Copernicus


Nothing is happening!?

It's one of the few predictions on ATS to actually came true.

I think something like six banks have failed so far this year, Fannie and Freddie are in critical condition, the FED had to broker a deal for Bear Stearns, half a million homes are in foreclosure and the credit bubble hasn't even popped yet, food prices have risen by fifty percent (over-all) and energy prices are expected to remain sky-high.

But it's not too serious, right!? Now that is a glass that is half full.

[edit on 19/8/2008 by kosmicjack]

reply to post by kosmicjack


Its serious, but it wont crash the US economy. Crash, as in putting people back into a 1920's depression. Your money being worth nothing.



[edit on 19-8-2008 by Copernicus]

reply to post by jefwane


Sorry, I feel your pain - happens to me all of the time.

I agree that the mortgage thing is going to explode sooner rather than later. I hear chit-chat among friends and co-workers that tells me even financially stable and responsible home-owners are having difficulty.

The FED interest rate is at the crux of the issue. You are right in that the FED has to raise interest rates to curb inflation, but the FED can't do that because it will significantly raise mortgage payments for those that have ARM loans.

Inflation has been a huge problem this year and the FED knows about it. They haven't raised rates because of the mortgage issue and won't do so for a while because of the potential problems it can cause.

Originally posted by mythatsabigprobe
I think it will happen before that, when the FED is forced to raise interest rates because of inflation. That will be the end of any hope for recovery.

This may not be a crash, but it's more like a slow death instead.

Originally posted by Copernicus
reply to post by kosmicjack

 

Its serious, but it wont crash the US economy. Crash, as in putting people back into a 1920's depression. Your money being worth nothing.



[edit on 19-8-2008 by Copernicus]

the OP link must have been reading the plethora of state side authors who make educated guesses that the next bank may be either:

National City
Washington Mutual

there are a couple others that get mentioned


and the last post about the economy getting whooped being the buzz since 2007... and it not happening yet
1) I'd point out that the BLS continually puts out bogus statistics.
2) also the Federal Reserve has made extradodinary moves to give liquidity to every banker in the USA
3)the SEC has intervened in 'free' market forces and has restructered 'shorting' standards and regulations to Protect the Sacred 19 financial houses.... even while the shorts on oil & gold are allowed to skyrocket unsupervised!

the stock market and economy are not being allowed to naturally correct
and the false info we are being given paints a picture of the rest of the world heading into recession but not the "USA"
the rest of the investors & economic pundits still are half asleep...
but continue to watch as each Fed/Treasury/SEC/PPT manipulation is finally seen for what it is...and inflation is revealed to be 16%+ and unemployment is closer to 12+% and the GDP is & has been negative since late 2007.
(building hamburgers is classified as 'manufacturing' according to the Govt...)

Originally posted by SeekingAlpha
The FED interest rate is at the crux of the issue. You are right in that the FED has to raise interest rates to curb inflation, but the FED can't do that because it will significantly raise mortgage payments for those that have ARM loans.

Inflation has been a huge problem this year and the FED knows about it. They haven't raised rates because of the mortgage issue and won't do so for a while because of the potential problems it can cause.

Originally posted by mythatsabigprobe
I think it will happen before that, when the FED is forced to raise interest rates because of inflation. That will be the end of any hope for recovery.

The bad thing is that credit spreads are actually wider now than they were during the Bear Sterns failure. I think their will be more bank failures, but I do think that the idea of some of the regional banks failing maybe false. It really all depends on what is on the banks books etc, but I think if their is a bank to go under it will more likely be Fannie, Freddie or some broker like Lehman.

Its serious, but it wont crash the US economy. Crash, as in putting people back into a 1920's depression. Your money being worth nothing




Please expalin how your money is worth anything now?

In the 20's, Currency was backed by gold and silver, we didn't have
9 trillion federal debt, no credit cards and people new how to survive....
Big difference?



[edit on 19-8-2008 by Pinktip]

[edit on 19-8-2008 by Pinktip]