Maturity to ride it out? We've NEVER seen an asset bubble like the current housing market bubble and the bigger the bubble, the harder it blows. Are you guys channeling the housing/stock market cheerleaders on CNBC -- it sure sounds like it ;)
WAMU (the largest mortgage lender in the USA) credit rating just cut to "junk" status?
http://www.reuters.com/article/ousiv/id ... 9120080915
FDIC haha!!! That sign at your bank -- you believe that shit? AIG is the Bank's "FDIC" and handles the credit default swaps (CDS) and it just FAILED and was taken over by a private company -- The Federal Reserve.
I've been talking about housing crash for 5 years now because I knew housing couldn't increase at 20-40%/year and heard about people taking jacked up loans, just waiting to buy since I didn't trust those BS loans they were giving. Now it's hitting harder than even I expected. Luckily we all shorted the home builders, then the financial companies and while it worked well, I got a warning for ya.
Let's see, the USA's biggest financial firms burning 1-2 per month? FDIC says more than 100 banks may fail and not just the "little ones" and you are calling for calm?
No way, I have no reason to trust some bank that tries to get 3$ from me to get my own money. You can leave your stuff sit, but you might want to read about people who got .25 on the dollar from their "insured" FDIC money (did you pay for that insurance?) under 100K before you pass your advice. The proof is in their previous action and trading me 25%:1 does not work for me.
Plus the FDIC system wasn't designed to handle the kind of failure we are seeing now -- 100 year old firms dropping like flys because they ended up with bad home loans?
http://www.fdic.gov/news/news/financial ... 08002.html
Part 2. This part of the proposed rule applies to large FDIC-insured institutions with complex deposit systems. Covered Institutions would be required to adopt mechanisms that would, in the event of the institution's failure:
* Allow automatic posting of provisional holds on large deposit accounts in any percentage specified by the FDIC on the day of failure.
* Provide the FDIC with deposit account data in a standard format.
* Allow automatic removal of the provisional holds and posting of the results of insurance determinations as specified by the FDIC.
FDIC to Add Staff as Bank Failures Loom
http://online.wsj.com/article/SB120398607404892133.html
Two IndyMac customers caught unawares offer lessons for others
http://www.marketwatch.com/news/story/t ... st=SecMKTW
FDIC Insurance Fund - It Doesn't Actually Exist
http://seekingalpha.com/article/95129-f ... ally-exist
FDIC may borrow money from Treasury: report
http://www.reuters.com/article/newsOne/ ... 0420080827
So please do stay calm, just don't trust something that can't be trusted to manage it's own money -- manage it yourself or it will manage you.