IndyMac Goes Belly Up in the Blood Tide of Economic Failure
Posted in Main Blog (All Posts) on July 12th, 2008 4:40 am by HL
IndyMac Goes Belly Up in the Blood Tide of Economic Failure
The blood tide is just starting to wash in, and this corpse will soon be joined by many others.
Great Depression Soup Kitchen
It’s the first bank failure since the eighties and the Feds have stepped in and taken over. I’ve already had one person write me wondering how it would affect them. (In their case, probably not much, but then they owe IndyMac money, not the other way around.)
This won’t be the last bank failure, by the way, and it’s interesting that IndyMac did fail. Even the Fed’s loan facilities can’t keep a bank or brokerage house up if a real run starts, and folks were pulling out a hundred million a day. (Actually, that’s a pretty mild run.)
Add this to the news about Freddie and Fannie being essentially bankrupt (yes, yes they are) and that they will probably go into receivership or something pretty close, and what I predicted in March—that the federal government was going to effectively wind up as the largest owner of mortgages in America is right on track.
Seriously folks, the stuff that people like me have been writing about for years is coming true. It’s almost all coming true. And I’m really not happy about being right. Get your financial houses in order; make sure your neighbors like you and kiss your spouse every morning and treat’em right because the bad times are only beginning.
The blood tide is just starting to wash in, and this corpse will soon be joined by many others.
