Here's another fyi:
Last night I heard on CNN about this Indymac bank situation. I had heard
about it earlier, but haven't made the opportunity to sit down and find out any
details. I guess the details I was able to hear last night are as follows:
Indymac was allowing homeowners to get mortgages without any back-up
investments (bear with the noneconomic terms), thus, the homeowners if they
couldn't pay their mortgage they didn't have any capital to pay back the bank.
The bank, which is overseen by the gov't (all banks are), thought they could
just sell the houses to get their mortgage hand-out back if need be, well, now
the country is in the middle of a mortgage breakdown, houses are getting
foreclosed, and the market is not a housing market. A Senator, not sure who
(can't remember), publicly mentioned to a committee or something, that this
bank, Indymac, had all these foreclosings on mortgages within their bank, but
the bank couldn't resell the houses to break even or make a profit. He, the
senator, wanted an investigation into this bank before it was too late. Well,
now that the information was made public, investers heard about this, and
pulled money out of Indymac and a run on the
bank happened. It was too late. Indymac then went belly up this week as the
investors took their money. This is being reported as possibly the largest
banking closure (loss of money within a bank, unless somebody buys the bank and
restocks the investors money back into the bank) in U.S. history, but much of
what is happening is not out yet and people, including reporters are trying to
investigate. They (CNN) were showing pictures of people at the bank doors
looking to go in, like so many people go to banks across the country, but only
found locked doors with signs taped to the door about the banks closing, thus,
their money lost. Now, here's the big hitch on this whole situation. The
reporter on CNN was talking about how the FDIC, gov't banking insurance
company, will only back up 100,000 dollars lost in a bank's closing. The
immediate impact by Indymac's closing is heard to effect 90 other banks across
the U.S. - 90. So, the reporter said to
the public on CNN you might want to get any $'s you have over 100,000 dollars
out of the bank so you don't lose that money for these other banks, if found
out will cause a run, and the ripple in this already downward economy will, as
we all have figured out by now, disastrous. This is very shaky ground, very
shaky. Even for the reporter to say this is cause for fear.
Think about the woods. Think about gardens. Hopefully creative
generative morals are streaming onward shining something helpful.
sincerely good luck,
SA
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