Banking Collaspe Begins?

So is this the beginning of the end for the world economy? Are we going to see a 1930s style depression ie The Great Depression? Why do i ask i hear you cry? Because of this news just in:

news.sky.com...

Stock up on those cans of baked beans folks, i think you will be needing it.

[edit on 14/9/08 by Wirral Bagpuss]

[edit on 14/9/08 by Wirral Bagpuss]

Mod Edit: Link Sanity.

[edit on 14/9/2008 by Mirthful Me]

Sorry the link is playing up. lets try again

Bankin g Failure

Well here is another link
Wall St on alert

just another source for you

My take
I just hope my friends (includes all of ats )and family get through it

You beat me to the punch line, I was going to post that we are close...

Yes Monday could be the day!

The overseas markets are down bigtime the last I looked.

Everyone is dumping the dollar including our friends the Russians.

Lemann Bros, AIG, Merril Lynch all collasping before our eyes.

High fuel prices due to Hurricane Ike and futures speculations.

It's looking really bad for Monday.

I guess keep an eye on your local bank, if you see long lines go for it and get some cash before the Feds close all banks and call a Holiday.

I would expect a 72 hour banking Holiday and then a restart to the banking system sometime Thursday or Friday.

We could be in for the perfect storm, first our banking systems dies then we get attacked by the Russians or a conflict some where in Europe or the terrorists in the Middle East, some kind of conflict will follow the banking collaspe. expect to get hit when your down...

Good luck to you all, it's been fun!

the FDIC insures our money up to 100 grand, correct? so in effect all those rich folk could lose alot of money, specially the big wig investors, creating a much larger middle class and ridding us of some of the wealthy? Keep in mind this is my humble opinion and am no expert in the matter of finances.

Oh man this is going to be bad!!!

A.I.G. Seeks $40 Billion in Fed Aid to Survive.

The American International Group is seeking a $40 billion bridge loan from the Federal Reserve, as it faces a potential downgrade from credit ratings agencies that could spell its doom, a person briefed on the matter said Sunday night.

Ratings agencies threatened to downgrade the insurance giant’s credit rating by Monday morning, allowing counterparties to withdraw capital from their contracts with the company. One person close to the firm said that if such an event occurred, A.I.G. may survive for only 48 hours to 72 hours.

globaleconomicanalysis.blogspot.com...

Lehman screws the broker/dealers...files BK after 11:59

--------------------------------------------------------------------------------

The marathon ISDA session today, to clear Lehman's OTC debt derivatives before they filled Chapter 11 was for nothing. They waited until after 11:59 to file. TSwillHTF tomorrow.

Watch the hedge funds, pension funds, mutual funds and money market funds dump stocks, bonds, commodities etc to meet margin calls.

Scary stuff

As far as saving up the baked beans goes, it could and will have similiarities with the depression of the 20s and 30s, but after that event, the FDIC was put into place. It assures every depositor up to 100,000 dollars at each bank. That means that if you have 100 grand at regions and wachovia, you are garanteed that back by perverted uncle sam. i do have a theory, although i am no expert, that because of this many rich investors, i.e. the upper upper class, could lose tons of money, effectly increasing the size of the middle class. That is after all what made America so great, a large middle class. Perhaps eveything returns to equilibrium after awhile?

I think that you are absolutely right. This Monday morning will be one devastating morning the global financial markets. But just like history, Tuesday will probably be worse.

I am going so far as to take most of my money (not a lot) out of my bank Monday morning. Should I post this information? Are we going to cause a run on the banks that only further adds to the problem? At this point I think it is unavoidable.

It was the banks themselves that caused this problem with their greed and corruption. I firmly believe at this point that it is perhaps best to take at least half of your money out of the banks. Why?

It is because the FDIC has all ready stated that they need to treasury to help them pay out their obligations. This means printing more money to give it to customers that lost it from a bank that closed its doors. How long will it be before anyone gets their money from the FDIC? Probably not that long, but for certain, the value of that money will be a lot less than it is today.

It doesn’t look good my friends. The worst part is that it appears that the large banks themselves are somehow pissed at the bush administration for not bailing out Lehman. It appears that the big banks will try to “Wag the Dog” this week by attempting to punish the Bush administration for not bailing out a fellow bank by selling off major assets on the market and causing a stock market melt down.

It might be as if to say, “Fine, if you won’t bail us out then we will make the economy go to crap and ruin the Republican parties chances of election.”

I don’t want to be a part of that, so, I’m going to go to my bank Monday and try to do two things. Firstly, take my money out, and secondly try to do what Dick Cheney did and convert some of it to Euros or Brazilian Rios.

[edit on 15-9-2008 by Hot_Wings]

Points to remember:
a) America is broke.
b) Our dollar's are backed only by our debt.
c) We can't pay our debts.
d) Asia getting tired of holding hands.

[edit on 15-9-2008 by Regenmacher]

Originally posted by eyeoftiger
... the upper upper class, could lose tons of money, effectly increasing the size of the middle class.

Since the hyper-wealthy own most everything anyways, they would lose the most.

Originally posted by Hot_Wings
I am going so far as to take most of my money (not a lot) out of my bank Monday morning.

What makes you so sure that your paper money will be worth anything?

Question: If one has an outstanding balance on a loan to bank, and that bank fails, does he/she still have to pay the loan back? Sorry if the answer is clear I am not well informed on this subject, not even in my twenties yet lol.

Originally posted by In nothing we trust

Originally posted by eyeoftiger
... the upper upper class, could lose tons of money, effectly increasing the size of the middle class.

Since the hyper-wealthy own most everything anyways, they would lose the most.

Yea but would their loss hurt as much as those that rely on their pensions and retirement investments?

How about those that lose their jobs because the businesses they work for can't secure needed credit to ride out tough times and instead force massive lay-offs?

No my friend, the hyper wealthy will be just fine. If a billionaire loses 90% of his wealth, he still has a hundred million. If inflation increases by 500%, the billionaire is still fine.

Good point, i did not see that side of it.

Originally posted by wutone
No my friend, the hyper wealthy will be just fine. If a billionaire loses 90% of his wealth, he still has a hundred million. If inflation increases by 500%, the billionaire is still fine.

But is a world filled with impoverished, insecure people with no hope one that billionaires really want to live in?

reply to post by eyeoftiger


It will be good to get several perspectives on this yet from what I understand they sell loans everyday and if a bank fails it sells off its debts to as collection agency.

We will all be in this together, but there will be no forgiving our loans.

Originally posted by In nothing we trust

Originally posted by wutone
No my friend, the hyper wealthy will be just fine. If a billionaire loses 90% of his wealth, he still has a hundred million. If inflation increases by 500%, the billionaire is still fine.

But is a world filled with impoverished, insecure people with no hope one that billionaires really want to live in?

No they want to live in a world where the impoverished and insecure people starve themselves out. There is a reason why many elites want to depopulate the world.

Originally posted by antar
reply to post by eyeoftiger

 

It will be good to get several perspectives on this yet from what I understand they sell loans everyday and if a bank fails it sells off its debts to as collection agency.

We will all be in this together, but there will be no forgiving our loans.

I second this opinion, a person's debt is considered as an asset of some value. A failing bank will liquidate it's assets and there will always be someone else to purchase that debt.

reply to post by eyeoftiger

Question: If one has an outstanding balance on a loan to bank, and that bank fails, does he/she still have to pay the loan back? Sorry if the answer is clear I am not well informed on this subject, not even in my twenties yet lol.

Yes, your legal obligation to pay for the loan is separate from who owns the legal right to collect the debt. What the banks were trying to do very recently in fact was to sell off those bad loans to other corporations in the hope of seeing some short term profits while writing off the majority of the loan.

[edit on 15-9-2008 by Hot_Wings]

reply to post by Hot_Wings

What the banks were trying to do very recently in fact was to sell off those bad loans to other corporations in the hope of seeing some short term profits while writing off the majority of the loan.

So, if they don't get a chance to sell all of the loans of before they write it off. What happens to the loans that they wrote off? Do those people still pay?