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.

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.

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 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]