And so it begins…California Bank seized the Feds!

From the LA Times:…

The federal government took control of Pasadena-based IndyMac Bank today, in what regulators called the second-largest bank failure in U.S. history.

With Freddie Mac and Fannie Mae both distressed (in fact, yesterday there were reports that were using the term insolvent for them), is it only a matter of time for the US banking/monetary system to go bust?

Today, the Dow was down 128 pts., and that was probably mainly because the Dow closed prior to the seizing of IndyMac Bank.

Interesting times are ahead, and they may make us forget about (at least for a while) the Presidential campaign.

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  1. I have stopped reading about the economy ’cause I’m already depressed.  But we ain’t seen nuthin’ yet.

    A YouTube that might help cheer some of us:

    • Edger on July 12, 2008 at 3:51 am

    There is an economy? It’s in trouble?

    I have six dollars and ninety four cents.

    It’s my grocery and retirement fund, but if it will help they can have it.

  2. Oh…there is no bright side.  🙁

  3. …I seriously, seriously doubt that Fannie and Freddie are in any real long-term trouble.  And what is bad for their shareholders is not by default bad for anyone else.

    But, just so we all understand, the total liabilities of Freddie and Fannie are over $5 trillion.  So, if you want to imagine utter disaster, that would be the amount of debt that would be transferred to the taxpayer.  But that is, in the opinion of every expert I’ve read, almost impossible to have happen.

    • brobin on July 12, 2008 at 2:52 pm

    swear that there WAS NO recession in this country!  The recession is only a made up notion of the Liberal Media (boy, have I debunked that Media being liberal thingy right here on DD) and our country is strong and the fundamentals of our economy are strong!

    The smell eminating from my radio was stronger yet….

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