[JJ]

$this->bbcode_second_pass_quote('smallpoxgirl', '')$this->bbcode_second_pass_quote('Ludi', 'B')ut really, if you expect Santa to bail out the holder of the bad mortgage, why don't you expect Santa to bail you out too?

Or does Santa only bail out the bad kids, and gives a lump of coal to the good kids?

[Ludi]

$this->bbcode_second_pass_quote('JJ', '
')
+1

[smallpoxgirl]

$this->bbcode_second_pass_quote('Ludi', 'W')hat is your plan to avoid being forced into the role of Santa?

[Ludi]

$this->bbcode_second_pass_quote('smallpoxgirl', '
')Bitching about it on the internet.

[smallpoxgirl]

$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('smallpoxgirl', ' ')What else am I going to do?

[mattduke]

$this->bbcode_second_pass_quote('', 'T')he secret behind East Bridgewater Savings Bank's accomplishments is the careful approach of 62-year-old chief executive Joseph Petrucelli. "We’re paranoid about credit quality," he told the Boston Business Journal.

That paranoia has allowed East Bridgewater Savings Bank to stand out among a flurry a failing banks, with no delinquent loans or foreclosures on its books, the Journal reported. East Bridgewater Savings didn’t even need to set aside in money in 2008 for anticipated loan losses.

But rather than reward Petrucelli's tactics, the FDIC recently criticized his bank for not lending enough, slapping it with a "needs to improve" rating under the Community Reinvestment Act, the Journal reported.

[Stonemason]

Getting people to think once again that banks should be strict with them about lending them money for their economic growth?

[PenultimateManStanding]

Just goes to show that the sclerotic authorities have learned nothing from this whole mess. They've got ideological blinders on and would make the same blunders again if they could. The blind leading the blind, Bruegel:

[mattduke]

$this->bbcode_second_pass_quote('', 'U').S. banks that are struggling to stay afloat will not be allowed to aggressively ratchet up interest rates to attract customer money, a top bank regulator said on Friday.

The Federal Deposit Insurance Corp voted to bar a bank with insured deposits from paying interest rates that "significantly exceed" prevailing market rates if the bank is deemed not well capitalized. The new rule better defines what constitutes normal market rates, the FDIC said.

[cipi604]

lol

[gt1370a]

Why is this lunacy? It was lunacy that they were ever allowed to in the first place.... think about it. A bank that is on the verge of failure (Indymac) starts paying 6% for CDs when other banks are paying 2%, in order to draw in capital and support their balance sheet in the short term. Of course, no idiot would buy that 6% CD if it weren't for the fact that the FDIC insurance was backing it. This draws money away from relatively healthy banks and into the relatively weak, and puts the stronger banks at a competitive disadvantage (forcing them to either forgo deposits or jack their own rates up). And then, when the Indymacs fail, the FDIC and the institution that takes over their branches are stuck with these outrageous CDs to pay off.

[mattduke]

$this->bbcode_second_pass_quote('gt1370a', 'W')hy is this lunacy? It was lunacy that they were ever allowed to in the first place.... think about it. A bank that is on the verge of failure (Indymac) starts paying 6% for CDs when other banks are paying 2%, in order to draw in capital and support their balance sheet in the short term. Of course, no idiot would buy that 6% CD if it weren't for the fact that the FDIC insurance was backing it. This draws money away from relatively healthy banks and into the relatively weak, and puts the stronger banks at a competitive disadvantage (forcing them to either forgo deposits or jack their own rates up). And then, when the Indymacs fail, the FDIC and the institution that takes over their branches are stuck with these outrageous CDs to pay off.

[gt1370a]

$this->bbcode_second_pass_quote('mattduke', 'G')ood point. Why not just get rid of privately owned banks altogether?

[deMolay]

This is ugly news. http://www.mybudget360.com/fdic-loan-re ... aurant-tr/

[Daniel_Plainview]

And the commercial real estate collapse accelerated in Q2 as prices fell nationally by 18.1% (the biggest quarterly decline in the 25 years since the index has been published; the second-biggest drop was 10.6%).

link

[oxj]

Cool. Imagine all the paintball arenae.

[the48thronin]

$this->bbcode_second_pass_quote('oxj', 'C')ool. Imagine all the paintball arenae.

[AirlinePilot]

I continue to wonder how long all this will go on. Thanks to Congress these F&*%$rs now have a credit line wirth something like 400B$. It comes directly from A. Your pocket, B. Govt printing presses.

http://www.abovetopsecret.com/forum/thread495734/pg1

[ian807]

FDIC. Banks. Fannie and Freddie. It's all the same funny money.

Look. All we've done is put off the day of reckoning. Enjoy this time. Be thankful you can put a card in an ATM, get some paper out and that someone will take it in exchange for goods and services. There's no predicting how long that happy little situation will continue, but the economy is sufficiently fragile that even a little bump is capable of bringing it down like a house of cards.

A war, a terrorist act, a very bad flu, a bad enough solar flare at the right time, the Chinese decide to stop buying our debt. Etc. What used to be little downturns we could deal with are now amplified by 1 quadrillion or so of bank exposure to derivatives worldwide. Economically speaking, the world is poised atop a powder keg hoping nobody lights a match.

[Outcast_Searcher]

We have tons of BIG fiscal problems in this country, but I don't see this one as that big of a deal.

1). The insurance premium for the banks to get the FDIC insurance can be raised in necessary to meet the ongoing expenses. This recently happened (last fall I think) already.

2). Banks fail in clusters after bad financial times, like recessions. When that happens, the FDIC reserve dips. For everyone that believes we will recover to some reasonable extent (doomers excepted, I suppose) - this is just a nasty recession, and will pass.

Now, as far as getting the public or the congress or the administration to behave in a financially responsible manner that won't bankrupt us and/or destroy the dollar over time -- I'm a big time pessimist on that front (and have been for 30 years). This process could take 2 or 3 more decades IMO, depending on how the chips fall.