It is real simple folks. When BSC was bailed out we had a huge rally of many percentage points. When the Fed stepped up to the plate and granted rate cuts to the street we had a huge rally of 400 points.
The FNM and FRE news should be of greater value than the BSC bailout or any inflationary rate cut. Sadly it is not worth more than the gum under you shoe as smart traders and longs are selling into today’s rally. Forget about today the rally hardly lasted an hour.
The FED, PPT, Congress, and your treasury secretary can not stop a run away freight train. I still believe FNM and FRE are a smokescreen for something much larger.
I believe this since there is still no mention of IMB’s failure, but more so since they both have $25 billion plus in capital above the 1.5% threshold. According to analysts they would have to loose $40 billion plus to be in a position to have to raise money according to their covenants.
Maybe it is C, MER, or LEH….Perhaps it is senior citizens being found frost bitten because they will not be able to pay their heating bills. God forbid that notion. Be careful, cash and time are still your best friends.
GLT
by GW
[youtube:http://www.youtube.com/watch?v=AFks9A9TCF0 450 300]If you enjoy the content at iBankCoin, please follow us on Twitter
I agree with you GW, there must be something going on behind the scenes than we know about, that’s why it’s quiet (too quiet). Nothing to do but wait and be careful.
I’m actually getting nervous despite my huge cash position.
GW…I also think its strange about IMB not getting any headline news…..David Blaine shit. Or maybe I love Lucy shennigans.
mrkcbill,
It is more than strange…I cry foul! This was major news not being reported on friday. Certainly not proper disclosure.
Say goodbye to WM, we hardly knew you, can’t believe it’s this low.
We will have close to 200 bank failures before all is said and done.
Even if Ben and Hank go the full monty, there isn’t enough taxpayer money to save the smaller ones.
Jim Rogers will be happy with that outcome.
Our banking system will eventually look like the rest of the countries around the world, with only a handful of large, nationalized money center banks.
The “powers that be” are trying to move things in that direction.
A’Dawgg,
I think this is the plan…to consolidate and reign in more control over the system of credit and money. Kinda like robbery if you ask me.
agreed, so who will be the survivors? I would say BAC except for the fact that they bought CFC.
GW
All this contagion is giving “them” more ammo to promulgate their agenda.
I think Canada has 5 banks. Brazil, 3? Maybe I’m off on the numbers, but the point is, there is going to be a lot more consolidation in the US banking industry going forward.
We can also count on more regulation.
A’dawgg,
100% agreed.
The question is: was this contrived? That is more important than the actual occurences.
Our banking system will eventually look like the rest of the countries around the world, with only a handful of large, nationalized money center banks.
Maybe more regulation, maybe more consolidation. But let’s be realistic… there’s upwards of 9,000 banks right now (down from about 12,000 before the last bank crash in 90-91).
We’ve got a ways to go, and until the Paulists make fractional banking illegal, it’ll remain “the best game in town.”
__
Jake, not saying we’ll get down to 5 banks soon. Key word is “eventually”.
Eventually, the number is going to be reduced by a lot in the future. At 1,000 bank failures / yr, sometime around 2017—just in time for Social Security to officially go bankrupt.
AD — possibly, but not without some serious regulatory revamping.
Everyone thought banking was dead the last time we had an RTC situation. They are like mushrooms, however. I know of one suburb (Georgetown) of Lexington KY — not a big city to begin with — that has nine new banks on the ground on the last ten years. Absolutley nuts.
Why? Because it’s a license to print money, that’s why.
)))