The New "S&L" Crisis: Bailouts for States Likely, Invesco's Garnick Says

Corruption and pensions. Government mismanagement make madoff look like and angle, and Obamacorn keeps putting down the free market - go figure. Deflationary depression coming.

The FDIC seized Washington Mutual Bank saying there had been a bank run amounting to 16.7 billion dollars in 10 days. The reason this money was withdrawn from the bank is unknown. The FDIC saw money moving out of larger accounts and assumed a run was in progress. Just 2 weeks before the FDIC seized the bank WAMU had worked out a solid business plan with the OTC (Office of Thrift Supervision). At the time of seizure, WAMU had access to $50 billion in assets: sufficient liquidity to handle all their obligations. The situation, however, seemed different to the FDIC, whose reserves were low as a result of not collecting insurance premiums from 1996-2006 and the bank failures in the previous weeks. Appointed officials at the FDIC were concerned that if the failure of Washington Mutual was followed by other bank failures as well, the agency would not be able to handle the situation. Despite this concern, the FDIC had the ability to borrow $30 billion from the Federal Reserve; however, for some reason it did not do so. The FDIC’s move was more about protecting the federal deposit insurance company than about protecting the insured. In short, the FDIC acted prematurely, behind closed doors. The Washington Mutual Executives had no prior knowledge of the FDIC’s plan. In fact, at the time of the seizure WAMU was in the midst of sale negotiations with several other banks, and had been given no deadline by the FDIC to find a buyer. Despite WAMU’s good-faith efforts to find buyers, banks which were contemplating buying Washington Mutual had been notified by the FDIC that the FDIC was to auction off the bank, again without WAMU’s knowledge. This FDIC action prevented a sale from being made. Even worse for WAMU, behind closed doors, the FDIC was offering prospective buyers a much sweeter deal than the ones WAMU was negotiating. The FDIC arranged for JPMorgan to purchase the $300 billion dollar corporation for the bargain price of 1.9. The FDIC needs to be held accountable for its short sighted action which has caused havoc throughout world markets. The FDIC had many options in the event that WAMU faltered. The option chosen, seizing the bank and selling it overnight for a miniscule fraction of its value in a clandestine deal with JPMorgan, was the worst of any options they had. Did the FDIC act appropriately? Most shareholders don’t think so and they want the FDIC to answer for that. The result of the FDIC’s hasty and secretive action was that the shareholders of Washington Mutual Bank lost billions of dollars. Shareholder portfolios were emptied overnight - because of collusion between the FDIC and JPM in weeks leading up to the seizure. Now, shareholders seek redress. Never has the law been applied with such disregard for its intention. Government regulators, supposedly the ones responsible for protecting us, circulated insider information about the bank to its competitors and precipitated a catastrophic collapse whose repercussions are still being felt today. Coincidentally, JPMorgan has been the institution which has profited handsomely from these failures. Coincidentally, the former head of the SEC (Securities and Exchange Commission) whose role is to oversee stock trading, works at JPMorgan, and this week was accused of private conversation causing difficulties that may have resulted in another recent bank failure, that of Bear Stearns. JPMorgan has also been accused of interfering in Lehman Brothers’ access to $5 billion dollars which helped catapult their demise. And the company has been accused of denying WAMU access to $5 billion dollars they had on deposit with JPMorgan.

"With American voters going to the polls today in key elections, a lot is at stake ..." //////// ////////// Melia is hearing about possible voter fraud in NJ connected with absentee ballots, similar to the MN Senate race ... here's something we ought to ban: absentee ballots. If you can't be at the polls on the day they are open, tough! Of course we could move elections to Sat-Sun like they do in Europe and give everyone a better chance ... but who stands in the way of that? Unions. (Most of those guys get the day off.)

The story of Ahmmmm http://www.thedeal.com/dealscape/2009/10/wamu_failed_because_of_two_ban.php

I wouldnt spend because things are bad. I dont have any money to spend. Just like a lot of others out there..................

Gata Watch this !!! Wake up ! http://www.youtube.com/user/testorx2

Mr. Obama Will Run Our...Great Nation into the....The BIGGEST DEBTOR..NATION IN THE Entire...Universe....Welcome To....NOBAMA NATION....Bankrupt..!!!!

Where do they find these people. Listen to Catherin Fitts. http://ratical.org/co-globalize/CAFmrl.html

Self serving Government breeds more self serving Government...... I swear, there could possibly be a "middle class revolution" as educated un-employed busy bodies turn their energies towards the cause of their problems........the BIG CONSUMING MONSTER GOVERNMENT............................................................... You say you want a revolution Well, you know We all want to change the world You tell me that it's evolution Well, you know We all want to change the world But when you talk about destruction Don't you know that you can count me out Don't you know it's gonna be all right all right, all right You say you got a real solution Well, you know We'd all love to see the plan You ask me for a contribution Well, you know We're doing what we can But when you want money for people with minds that hate All I can tell is brother you have to wait Don't you know it's gonna be all right all right, all right Ah ah, ah, ah, ah, ah... You say you'll change the constitution Well, you know We all want to change your head You tell me it's the institution Well, you know You better free you mind instead But if you go carrying pictures of chairman Mao You ain't going to make it with anyone anyhow Don't you know it's gonna be all right all right, all right all right, all right, all right all right, all right, all right

Here in L.A my house value went down but my property taxes went up considerably. Wha Happan? The house next door which is bigger than mine cannot get sold at $395,000 but the county assesor ssays my house is worth $478,000 whether I like it or not. Wha Happan? I cannot wait for the kids to grow up so I can go to Arizona or Texas where the government is a lot more prudent with my money.

"BIG CONSUMING MONSTER GOVERNMENT" You say you want a revolution Well, you know We all want to change the world You tell me that it's evolution Well, you know We all want to change the world But when you talk about destruction Don't you know that you can count me out Don't you know it's gonna be all right all right, all right You say you got a real solution Well, you know We'd all love to see the plan You ask me for a contribution Well, you know We're doing what we can But when you want money for people with minds that hate All I can tell is brother you have to wait Don't you know it's gonna be all right all right, all right Ah ah, ah, ah, ah, ah... You say you'll change the constitution Well, you know We all want to change your head You tell me it's the institution Well, you know You better free you mind instead But if you go carrying pictures of chairman Mao You ain't going to make it with anyone anyhow Don't you know it's gonna be all right all right, all right all right, all right, all right all right, all right, all right

The opening statementsays it all ... the economy is proped up by the govenment

Hey Gang! Municipals, rating agencies, fewer services and higher taxes. This is the bell ringers call to reason. This is a common sense appeal and a rational approach to estimating a huge increase in state, local and federal taxes. Blaming Obama and hating the IRS is in part due to the rise of the Liberal Nations call to save all our behinds from depression. Taxes are very depressing aren't they? mmm mmm mmm the irony continues to unfold as fools pick for gold. Diane is a great guest and I see her logic for forewarning us all...Taxes are going to go up! Later gang!

Unionized California government , these public employees are criminals, that are stealing money from taxpayers by increasing property taxes and special assessment. My friend got property tax increase and now they do not have money for food . Tey are in forclosure because property taxes went up $300 to $5,000.00, this is increase of 6.38% and growing while their salary is only about $40,000.00. How nice. Criminals on all levels in state government must be fired. Budget must be cut until balanced. You teachers and other public servants - go to street, have foreclosure also and no bread. Why not? I will not give you any of my money for food. Guaranteed 100%. Go to the street all public servants and leave like rats.

Hey Sensey what is this you say. Voter Fraud in the U.S? I thought this only happened in third world countries like Mexico, Venezuela, Iran, Iraq, etc. I guess the only difference here is that we call voter fraud democracy and in the 3rd world countries it is called corruption. Talk about hypocrisy.

And had we not bailed out the sorry big banks this would have already have happened,some multi billionaires,would be multi millionaires and a change of oligarchs would have hit,but no!!!.........Willie in taxes

In the country where I reside, election day is a national holiday.. makes sense to me...

The yellow river meets the shining stone. Popoy is some kind of market wise code talker. He may be a genuine market wise guru...chants and rants aside its always fun to read these posts! ...smiles...

Garnick is as American as they come. She's like Mrs. Apple Pie. If she thinks the states are in trouble, imagine how bad it really is???!!!

Ban electronic voting machines,they can be rigged!!!