US: Financial system is a house of cards

What will happen if “more” banks will fail?

Interesting comment:
“I was talking to a close friend yesterday and he told me that he just heard an “expert” on CNBC tell the audience that the failure of IndyMac was nothing to worry about – it was just one bank. How on God’s green earth do they allow such idiots to mis-lead the listeners? Just one bank? This is the second largest bank failure ever, (second in size only to the 1984 failure of Continental Illinois Bank which led to a big jump in the price of gold at the time). Don’t these fools realize that the Federal takeover of this “one bank failure” is going to leave 10,000 depositors with $1 billion in deposits that EXCEED the $100,000 FDIC insurance limit and they will be lucky to get any of it back. Don’t they realize that this “one bank failure” will use up 10% of the total FDIC fund, which is only $53 billion. How safe if your money in your bank? How safe is the dollar?” Source: Here

It looks like the entire financial system of the U.S. will fail.
If you take a closer look at the article below, then you will see how tense the situation already is.
And
IndyMac was “just one bank”.
You will find more information below the following article.
– The Infinite Unknown

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July 17, 2008
Source: msnbc

Banks reportedly not taking IndyMac checks

Finally able to withdraw their money, customers can’t open new accounts

LOS ANGELES – The frustration didn’t end for some IndyMac customers when they finally were able to withdraw their funds from the failing Southern California bank seized last week by federal regulators.

Some people have run into more problems when they tried to deposit IndyMac cashier checks at other banks.

Sheryl MacPhee said she waited in line two hours Tuesday at an IndyMac branch in San Marino to liquidate a certificate of deposit. But when she took it to a Washington Mutual branch in South Pasadena to deposit, she said a manager told her their new policy was not to accept IndyMac checks. If the customer insisted, she said she was told, it could take eight weeks or more to access the full amount.

“Sure, IndyMac will give you a check,” MacPhee told the Los Angeles Times, “but what good is it if no other institution will accept it?”

Read moreUS: Financial system is a house of cards

FREDDIE & FANNIE UNCONSTITUTIONAL BAIL OUT USING WHAT?



“As I write this column, Congress has run this country into a $9,498,511,404,143.63 debt. That’s just under $9.5 TRILLION “dollars.””

I really hope that you will find time to read this article. 🙂
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Arthur Henning of the Chicago Tribune said back in 1935, “The New Deal will bring the Communist Party within striking distance of overthrow of the American form of government…” Mark Sullivan of the Buffalo Evening News also expressed alarm in 1935: “The New Deal is to America what the early phase of Nazism was to Germany…”

The nation is awash in fear because they are coming to realize that while they’ve been buying all the hype from the cabal of gangsters in Washington for decades, reality is now setting in as poverty is slamming millions who used to belong to the middle class. From dangerous lending practices to the derivatives time bomb waiting to go off and inflation getting ready to launch into hyper inflation, the situation is more grim by the week. A financial catastrophe so many have been warning about for decades, it’s all coming home to roost. The “perfect storm” as it’s being called. The beast is now devouring itself and we the people are caught in their cross fire.

Unfortunately, most Americans haven’t been listening. They’re either addicted to sports, shopping, porn, drugs or yaking on their cell phones while the world has been heading for financial Armageddon.

Read moreFREDDIE & FANNIE UNCONSTITUTIONAL BAIL OUT USING WHAT?

Ron Paul : When in the course of human events…

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.
– Congressman Ron Paul

Added: August 10, 2007

Source: YouTube

Bush: ‘Our Long National Nightmare Of Peace And Prosperity Is Finally Over’

Source: THE ONION From !!! January 17, 2001 !!!  A must read.

WASHINGTON, DC-Mere days from assuming the presidency and closing the door on eight years of Bill Clinton, president-elect George W. Bush assured the nation in a televised address Tuesday that “our long national nightmare of peace and prosperity is finally over.”


President-elect Bush vows that “together, we can put the triumphs of the recent past behind us.”

“My fellow Americans,” Bush said, “at long last, we have reached the end of the dark period in American history that will come to be known as the Clinton Era, eight long years characterized by unprecedented economic expansion, a sharp decrease in crime, and sustained peace overseas. The time has come to put all of that behind us.”

Read moreBush: ‘Our Long National Nightmare Of Peace And Prosperity Is Finally Over’

Amber light flashing on U.S. dollar intervention

So Inflation is really the greatest export of the US.
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LONDON (Reuters) – Three days before the last bout of coordinated central bank intervention to calm world currency markets, the International Monetary Fund’s top economist opined: “If not now, when?” Many experts are now asking the same.

Read moreAmber light flashing on U.S. dollar intervention

US: $455,000 debt per household

As the Bush administration proposes backstopping mortgage giants Fannie Mae and Freddie Mac with a $300 billion line of credit and Congress contemplates another economic stimulus, the question is who will bail out the government?

“People seem to think the government has money,” said former U.S. Comptroller General David Walker. “The government doesn’t have any money.”

A rare consensus has developed across the political spectrum that the government’s own fiscal affairs are precarious, with an astonishing $53 trillion in long-term liabilities, according to the Government Accountability Office.

To put that number in human terms, the debt has reached $455,000 per U.S. household. As that debt grows, the United States increasingly relies on foreigners, including China and Middle East oil producers, for financing.

Read moreUS: $455,000 debt per household

US: The Cattle Industry Is Struggling To Survive

Beef prices are likely to increase as rising food and fuel prices threaten many cattle ranches

The American beef industry is in trouble. Though the financial strain of rising fuel and food prices is being widely felt across the U.S. economy, the livestock industry, which consumes about 5 billion bushels of corn annually, is suffering more than most.

Feedlot operators, who fatten their animals on corn before sending them to a slaughterhouse, are losing $150 a head with corn prices near record levels because of demand for corn-based ethanol. In Texas, the country’s largest beef-producing state, a quarter of the once-packed feedlot space is unoccupied. Some operations are shutting their doors, and “liquidation”-the culling of herds-has become a frequent escape hatch for the seriously struggling.

Read moreUS: The Cattle Industry Is Struggling To Survive

If the price of oil doubles, food prices will at least double

At virtually every link in the nation’s food chain, the cost of oil is pushing expenses ever higher.

Retail bills for some food staples have risen at least 20 percent since 2006, and they probably will continue their upward march. A gallon of gasoline could cost $7 within the next two years, some analysts say.

“If you double the price of oil, I would assume that food would at least double, and it might be more because the cost of oil gets magnified in the food chain,” said Milt McGiffen, a vegetable specialist for the University of California cooperative extension in Riverside County.


SCOTT LINNETT / Union-Tribune Nancy Owens Renner of Ocean Beach expanded her backyard garden last winter in an effort to offset rising food and fuel prices. “I am thinking about how to maximize production in my yard,” Renner said.

By the numbers:
Price increases between May 2006 and May of this year:
53% – Eggs
25% – Bread
25% – Rice
19% – Milk
14% – Coffee
11%
– Chicken
Source: Bureau of Labor Statistics

Farmers are paying more money to fill their tractors with diesel for planting and harvesting. They also spend more for fertilizer, pesticides and plastic packaging, most of which are petroleum-based.

When the food is stored and processed, it takes a huge amount of energy, which is linked to the price of fossil fuels as well.

Then, products are shipped using diesel trucks and rail cars that are far costlier to run now than in years past.

The result is bigger and bigger food bills that are causing financial hardship for millions of Americans.

Read moreIf the price of oil doubles, food prices will at least double

Status Report on the Collapse of the U.S. Economy

“But, realistically, all ordinary people can do today is try to survive, perhaps by working with friends and neighbors in planting food and living within the underground economy. At least people might not then have to starve to death, because hard as it is to believe that “it could happen here,” widespread famine in the U.S. seems a real possibility over the next several years. Nations take such risks when they allow capitalist agribusiness to destroy local agriculture.”

With the economic news of the week of July 14-the continuing crisis among mortgage lenders, the onset of bank failures, the announced downsizing of General Motors, the slide of the Dow-Jones below 11,000-we are seeing the ongoing collapse of the U.S. economy.

Even the super-rich are becoming nervous as cries for an emergency suspension of short selling ring out.

What is really taking place, however, is that the producing economy of working men and women is being crushed by the overall debt burden on households, businesses, and governments that could reach $70 trillion by 2010. The financial system, including mortgage giants Fannie Mae and Freddie Mac, is bankrupt, as the debts it is based on cannot be repaid.

Read moreStatus Report on the Collapse of the U.S. Economy