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"You're thinking of this place all wrong. As if I had the money back in a safe. The money's not here. Your money's in Joe's house . . .right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others. Why, you're lending them the money to build, and they're going to pay it back to you as best they can."
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In real life, bank execs are far more often found on Cayman vacations than before "lynch mob" depositors.
[reuters.com...]
Best comment: "...reminds me of when condo flippers lined up to grab units in hot developments."
Because George Bailey wasn't in the business of giving people with $50,000 incomes $750,000 mortgages so that they could bid up the price of what would otherwise have been a $200,000 home.
IndyMac got what is deserved and what inevitably faces *every* business that put the bulk of its money into the real estate pyramid scheme of the past decade.
bank run --- sign of the times?
Dear god I hope not! I was just wrapping up college when the "dot-com" bubble burst and don't remember even noticing the short-lived recession that followed.
This is the first time as a professional that I've seen an economic downturn like this, and this news on Saturday really brought it home for me. Seeing a bank default (regardless of how irresponsible their lending practices were) makes my skin crawl.
Can someone who's been through some of these before lend some insight? Is this just part of the normal up and down of the economy or is this more significant?
George Bailey (2008): "Your money's in some illegal alien's $20,000 hot tub two states away, and Kennedy's flipper condo in Vegas, and Macklin's kid's Hummer." (and they're all walking on their debt!)
Lovejoy
[edited by: lawman at 8:07 am (utc) on July 15, 2008]
[edit reason] No Politics Per Foo Charter [/edit]
You don't want uninsured deposits in ANY bank but there are odd ways that can happen unintentionally. For example: two people are jointly on a $120,000 CD and then one dies. Some elderly have CDs that have rolled over for decades.
It would be easy for a fairly small corp to have more than $100k in a bank.
the stock market has been manipulated by the PPT since 2000
The Professional Poker Tour seems to have their hands in everything.
Can someone who's been through some of these before lend some insight? Is this just part of the normal up and down of the economy or is this more significant?
Greed and stupidity are part of the normal up and down of the economy. Having an MBA certainly doesn't innoculate anyone from either of these two maladies. We somehow managed to make it through the savings and loan crisis [en.wikipedia.org] in the 80's.
This one's worse than the S&L crisis, the country is virtually Bankrupt, the market is being kept afloat by the fed.
Lovejoy
lovejoy
the stock market has been manipulated by the PPT since 2000
What the heck is the PPT?
What the heck is the PPT?
Esoteric stuff. Only insiders who know about the "market miracle recovery" know what it means.
