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Economist: FDIC gearing up for bank closures
Washington Business Journal
Wednesday, July 8, 2009
The Federal Deposit Insurance Corp. is gearing up to handle a large number of bank failures expected as a result of bad mortgages, both in residential and commercial real estate, an economist said Tuesday.
“They know they’re going to take down a large number of banks and they can’t do it until they’re staffed up,” said Mark Dotzour, chief economist and director of research for the Real Estate Center at Texas A&M University.
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Dotzour expects federal regulators to establish an agency, similar to the Resolution Trust Corp. that disposed of assets belonging to insolvent S&Ls in the late 1980s and early 1990s.
“Once they start to sell [foreclosed real estate], we’ll find out what the market really is,” Dotzour told attendees at an economic summit hosted by a handful of real estate groups in Tampa, Fla.
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16 Responses to “Economist: FDIC gearing up for bank closures”
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July 8th, 2009 at 11:31 am
Why is everybody preaching at me to live within my means? After 9-11 the govt told me I could help win the war on terrorism by going shopping. I did. Next the govt told me that I was killing the planet by buying things so I stopped. Now the economy is dying because I’ve stopped buying. Next the govt will be telling me the best way I can help win the war on terror and save the planet is to DIE. I dont think I’ll listen to the govt anymore.
Madman Reply:
July 8th, 2009 at 12:59 pm
We’re screwed no matter what we do… they just preach whatever will put the most money in their pockets on the media outlets, and hope we all go out, and get arsehole deep in debt, so they can drive new Bentley’s and screw Paris Hilton wannabe’s.
Actually, the dying thing has already been out there… you and your evil carbon foot print… they had a game on ABC kids that told kids when they should kill themselves to stop being a burden on the earth.
Just total corruption, don’t listen to any of it.
truth911 Reply:
July 9th, 2009 at 6:50 am
brilliant
July 8th, 2009 at 11:59 am
Same play book as the first Great Depression. The greedy, evil Banksters Bankrupt all the smaller banks and businesses then swoop in like birds of prey and gobble them up for pennies on the dollar.
truth911 Reply:
July 9th, 2009 at 6:51 am
and i sure have noticed them piling up right now
July 8th, 2009 at 12:25 pm
You absolutely have to starve the populace of liquidity in order to force the sale of the plum assets for next to nothing. As I’ve said before, the real bargains don’t happen until the populace has been literally starving for a decade. We aren’t even close. Of course, we saw some early fire sales in the banking sector, when the largest retail bank presence in the country was bought for a giveaway in a “crisis”. Expect far more of these sorts of, “huh?” moments over the next few years, as the rhetoric is all about stimulus, but the reality is tightening.
The way it was done in the depression was higher taxes, protectionist tariffs, and devaluation of the dollar, coupled with increasing margin requirements at banks (thereby draining circulation of yet more dollars) and the government hoarding tax revenues as opposed to redeploying them into circulation.
Today, we have the Fed secretly, and for the first time in history, paying interest on deposits, thereby eliminating any real reason for banks to deploy capital, except maybe by investing in T-bills for a sweet risk-free arbitrage. The system is now set up to keep money out of circulation. It’s working, far as I can tell. Next come higher taxes, and then protectionist/nationalistic trade wars designed to strengthen domestic monopolies at the expense of free trade and general prosperity.
Wouldn’t entirely surprise me if they made physical gold illegal again, although there isn’t much basis for doing so, and they can accomplish the destruction of commodities values much more effectively via derivatives, which is how it’s all done these days.
So look for continued and rising unemployment, deflation in assets even as the Fed prints more money but the banks hoard it, tightening credit for the same reason, and the entire media/government apparatus to pretend to not understand what is happening, even though the government and its banking masters engineered it.
And don’t hold your breath for any investigations into Bear or Lehman or Fanny or Freddy or Wachovia trading to ever surface, nor any into oil manipulation. That’s off limits, clearly.
Pretty F-d up world, but there you have it.
July 8th, 2009 at 12:34 pm
Their greed is exceeded only by their arrogance !!!!!
July 8th, 2009 at 12:34 pm
NO ACCIDENT. MARXIST DICTATORS LIKE OBAM ALWAYS TAKE THE MEDIA FIRST AND USUALLY THE BANKS SOON AFTER. OLD NEWS ACE.
July 8th, 2009 at 1:30 pm
The FDIC has been gearing up for this for awhile now. Things are NOT getting better.
We are in a Lost Decade, kind of like Japan was. And we learning NADA from them.
July 8th, 2009 at 5:37 pm
Argentina is doing a banker holiday … the fdic is in trouble… I smell something international cooking… and it doesn’t bode well for any of us.
July 8th, 2009 at 6:20 pm
Fight the new world order, yes, but more importantly, get your houses in order for the changes which are about to come. Jesus saves, that’s all i can and will say. The world is full of lies & wickedness, here’s some truth for you…http://www.thywordistruth.com/Plan_of_Salvation/Plan_of_Salvation.html
July 8th, 2009 at 6:47 pm
Let’s not forget the planned banker holiday here in America on or about the first week in September. Remember that article posted here about two weeks ago? It will probably coincide with the swine flu getting out of hand and mutating. Argentina is a good test case because banks closed there in 2001 and now they are experienced.
July 9th, 2009 at 1:19 am
America wake up and stop living in debt, file for bankruptcy, so the bankers can eat the losses just like the FDIC will cover the failed banks with our tax money. Economic warfare is declared now…
July 9th, 2009 at 1:24 am
The Banking Parasites and their Fascist political supporters must be charged with War Crimes against the American people… Soon !
July 9th, 2009 at 4:32 am
FDIC does not exist
http://seekingalpha.com/articl.....ally-exist
July 9th, 2009 at 6:54 am
a deathly silence sets in when the green planes quit flying and the chem trails stop ?????????????