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Michael Kent › Likes
17 US banks have been closed so far during this crisis. How many banks failed during the depression?
Jeff P. Henderson, Bill Romanos, Mitch and 13 other people liked this
i just posted a newspaper article yersterday that addressed a letter from the FDIC where they say they are going broke and may fail by october
- chaz2b
i cant find the specific article but try this out http://online.wsj.com/article...
- chaz2b
i just had it, hold on
- chaz2b
I think I may have read the article, chaz2b, but, the FDIC have been saying that since October, so, it isn't hard to believe. The need to raise their rates.
- MVB (Grinch of FF)
sorry, cvant find the specific page (going into govt pages allways befuddles me, lol) but this should point you in the right direction Lindsey http://www.fdic.gov/bank...
- chaz2b
bank failures and assistance = http://www.fdic.gov/BANK...
- chaz2b
Lindsey, FDIC list;http://www.fdic.gov/bank...
- Wallace
+1 Wallace
- chaz2b
Fruit to Fruit comparisons are always problematic but to compare number of bank failures then and now one would be best using measure of branch locations or customers served as ratio of total environment. Changes in banking laws regulations mean there are now country wide and region wide (multistage) operations rather than single town (or even single community) banks... For first cut try multipling the "17" by the number of states they each operate in.... The number will be a tad more jolting.
- David HC Soul
I better start making new accounts and being smart with my money. I don't want to be paying this bailout money forever.
- Patrick
from twhirl
And aren't there fewer banks now than during the GD? Also, wouldn't the fewer banks that exist today be bigger?
- thepete
Funny, Chris, but I didn't make any arguments with this post. Can't a guy ask an honest question anymore?
- Alex Scoble
A question that has built in contradictions or one that begs an incomplete or misleading answer is an argument as much as "begging the question" is ....
- David HC Soul
Begging the question doesn't mean what you think it means, David. And this was an informative question, not one trying to make a point.
- Alex Scoble
Petitio principii, and It is possible to cast logical fallacies in the form of questions as part of framing. Of course I'll take your word that you weren't trying to make a point (my mistake for reading it in the same manner as Chris, so I am sorry). I do believe a strictly numeric answer to your question would be incomplete without expansion as it ignores important considerations regarding banking market structural changes.
- David HC Soul
To many banks anyways. I'm glad to see these greedy companies go down.
- orionstarr
cash? i have a change jar, investments? i have gold!
- chaz2b
i'm sure something could be worked out with gold over $900 an oz these days
- chaz2b
Why bother with cash when I can stockpile seeds. Food is the ultimate bartering item.
- FFing Enigma (aka Tina)
That's true, Chris. But if the excrement hits the air handling device, I bet your local moonshiner will accept corn seed as payment.
- FFing Enigma (aka Tina)
Tina, perhaps we need to change your "if" to a "when?"
- MVB (Grinch of FF)
As of 2007 FDIC coverage was 7,283 Institutions (total of 86,150 offices). In 1934 FDIC coverage was 14,146 Institutions (total of 14,146 offices). A few failures of note: WaMu with 2,239 retail locations was the largest single bank failure in US History (6th largest US bank with assets of ~ $328 Billion); IndyMac with (4th largest failure in US history with assets of ~ $32 Billion); In the news recently, Citibank has 1,000 branches and BankAmerica has 6,100 retail locations)
- David HC Soul
Thanks, David.
- Alex Scoble
700 banks over what span of time? We're averaging about 2 banks a week according to the FDIC http://www.fdic.gov/bank...
- Victor Ganata
as Mohomed notes.The FDIC was put in place after the start of the great depression (in 1934 as result of Glass-Steagall Act of 1933; and later The Banking Act of 1935 established the FDIC as a permanent agency) ... in response to the bank failures caused by "runs on the bank" during the Great Depression.
- David HC Soul
And what percentage of total banks was that 700?
- FFing Enigma (aka Tina)
Exactly Chris. As you noted in another post the FDIC proposed raising fees on banks in order to build up its deposit insurance fund, which had just $19 billion at the end of 2008. The outcome? It created such a stink from the banks (they claim they can't afford the additional insurance cost and it would "worsen their already shaken condition") that the Senate Banking Committee Chairman...
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- David HC Soul
The 2008 year-end insured deposits were projected to reach about $4.42 trillion with the reserve GROWING to $55.2 billion, a ratio of 1.25%.[while as mentioned above, the actual 2008 balance was $19 billion so the ratio is completely out of wack looking forward] According to Wikipedia "According to the FDIC.gov website (as of January 2009), "FDIC deposit insurance is backed by the full...
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- David HC Soul
I think the total derivative time bomb is even higher.... thats why the CDS HAS to be unwound slowly.... the full consequences of a rapid decline just can't be contemplated.
- David HC Soul
Some "old" (ie sometime last year) numbers: 1) <$1 Trillion - size of the sub prime mortgage markets === 2) $10 Trillion - total size of the US mortgage market ). === 3) $15 Trillion - total US money supply (before this year' s turning on of the printing presses - which are now running hot)=== 4) $50 Trillion - WORLD GDP - total amount of goods & services, trade etc exchanged in a year === 5) $100 Trillion - total trade "value" of all stocks and bonds (world markets) === 6) $500 Trillion - Derivatives
- David HC Soul
I went back to check some of the numbers in the above and came across a different "upper limit": "According to various sources -- including the Bank for International Settlements (BIS) in Basel, Switzerland -- the central bankers' bank -- the amount of outstanding derivatives worldwide as of December 2007 crossed USD 1.144 Quadrillion, ie, USD 1,144 Trillion.
- David HC Soul
Equity Linked Derivatives are at about USD 8.5 trillion, and these are the ones that could start to cascade quickly when GM's exposure starts to move the market.
- David HC Soul
Of course I'm aware that outstanding derivatives are notional amounts until crystallised, and actual exposure is usually measured by the net credit equivalent. (a lower figure unless many variables plot in the wrong direction simultaneously from a "Black Swan" type event). But a rapid unwinding in any single area could trigger a catastrophic cascade. The various markets themselves have...
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- David HC Soul
David is definitely making me want to invest in SKF
- Alex Scoble
My last negative post; from after this one only positive thoughts and vibes from me Alex! So here it is: In 1998 LTCM's (hedge fund) $5bn loss nearly brought down the entire system. The whole international situation is now such that there would be no recovery... another LTCM will have catastrophic results... hence the tightrope that must be walked by the Admin. The system is opaque and...
more...
- David HC Soul
warning, off topic unless you want to dream happy thoughts: http://www.youtube.com/watch...
- David HC Soul
perhaps we do need to entertain the bull: (warning off topic for the main thread here... but consider it a lesson of what a bull fight might bring now): http://www.youtube.com/watch...
- David HC Soul
Sorry the wierd humour doesn't connect... I do think taking on the Bull while on a bicycle is just about where we are now....and since I'm thinking happy along with the mainstream its one small step forward at a time....
- David HC Soul
So the FDIC limits go back to $100k once we hit 2010, otherwise the whole system implodes? Fun times.
- Victor Ganata
Try the UK. If it's not the government bailing out and (semi-)nationalising them, then it's a certain Spanish company absorbing them en mass presumably in the hopes of being a "superbank"...
- Tyson Key
That's 17 US banks just in 2009. 29 banks have failed since WAMU went under. 37 banks have failed since IndyMac was seized. What would you consider as time zero for this crisis?
- Victor Ganata
I think time zero was January 2007 (about 12 months before the official start of the recession) Of course this is rather arbitrary as the seeds were being sowed well before that, but I think that in 2006 it still might have been possible to steer the course to "safety". If memory serves me there were NO bank failures in 2006 and only a couple in 2oo5.
- David HC Soul
2009 (Through Feb) = 16 banks with $7,284 Million in assets ***2008 = 24 banks with $66,859 Million in Assets *** 2007 = 3 banks with $2,603 million in assets *** 2006 = 0 banks *** 2005 = 0 banks
- David HC Soul
Been testing live video stream from Deer Park; maybe streaming dharma talks are in the future?
Michael Kent liked this
Where do I sign me up?
- Michael Kent
Look for a tweet if it happens.
- Kenley Neufeld
Gotcha!
- Michael Kent
@katrinaneufeld you should be vegetarians and then no need to lie. Live happy, healthy, and earth friendly. :-)
Michael Kent liked this
Bottled water (supposedly from the spring and stored in a plastic bottle) vs. filtered water (who knows if all the harmful things are taken away?) - http://www.seventhgeneration.com/learn...
Michael Kent liked this
"One four-year study tested more than 1000 bottles and 103 brands of bottled water and found that one third of the brands contained contaminants including arsenic and carcinogenic compounds. Another study looked at the difference in bacterial contamination in municipal water versus bottled water and found that 26% of the bottled water had more bacteria than tap water. I could go on, but you get the idea. Interestingly, according to Co-Op America as much as 40% of bottled water is actually bottled tap water!"
- Kenley Neufeld
Just so, I boiled the water in my bottled spring water just now.
- Michael Kent
I love the contrast between my tweets and my brother's (@kenleyneufeld) tweets. SO SERIOUS.
Michael Kent liked this
Interesting new development. RT @cscan: Colin Powell to endorse Barack Obama: Help, or hurt? Discuss.
Michael Kent liked this
@suzi_cubed we discovered a mouse in our house a week ago; put out a humane trap and caught it within a day. It is a free in a field now.
Michael Kent liked this
free to play cat and mouse!
- Michael Kent
Tina Fey As Sarah Palin In VP Debate On SNL (VIDEO) - http://www.huffingtonpost.com/2008...
Michael Kent liked this
Is Google Using Chrome to Index Password Protected Web? - http://www.readwriteweb.com/archive...
Michael Kent liked this
iPhone Obama app searches my contacts, arranges them by State, and marks if I've called them from the app or not. Amazing.
Michael Kent liked this
It is. I'm in awe of the way that Obama is running his campaign...the iPhone app is just one part. But it is freaking amazing.
- Jason Griffey
from twhirl
Michael Kent and David Price liked this
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