Third Bank Collaspe!

by KaptainSteve Mon Mar 17, 2008 8:30 pm

If you are not scared now, then you won't be until it's too late!

First it was Countrywide Financial Corp., then Ameriquest Mortgage Co., and now Bear Stearns Co. .

When the fifth largest bank Bear Stearns was worth $170.00 per share one year ago, and the fed MADE Morgan Stanley buy them out for $2.00 per share (yes, it made them do it and GUARANTEED the purchase!) for all intents and purposes, THE BANK COLLAPSED and to prevent a run on the banks, the fed "bailed" it out.
This way there is no headlines screaming that a major bank collapsed even though it still did!

Sub-prime collapse 'beyond the US Federal Reserve

* US Federal Reserve 'lacking funds to help crisis'
* Losses yet to come 'easily exceed remaining $400bn'
* Not going to be able to deal with situation on own

FEARS are growing that the US Federal Reserve may soon find itself short of the funds needed to continue propping up the nation's financial system.

The central bank yesterday used its financial muscle to back the bail-out of the stricken Wall Street investment banking giant Bear Stearns, which will be taken over by rival JPMorgan Chase at a fraction of its worth last week.

But analysts believe the threat to the financial system, which continues to flow from the collapse of the sub-prime mortage market last year, is getting too big for the Federal Reserve.

"This is now beyond the Fed," ANZ international economist Amy Auster said.

"It is not going to be able to deal with this situation on its own."

Cash reserves drying up

She said the US central bank had already extended support of about $US400 billion ($426 billion) to the US financial system, compared with its assets of $US800 billion.

She said financial system losses yet to be reported could easily exceed another $US400 billion.

"What is missing at the moment is the US Treasury," she said.

But Treasury Secretary Hank Paulson has already declared his hostility to federal measures to help the sinking financial sector.

"Let me be clear: I oppose any bail-out," he said in a speech 10 days ago.

"Most of the proposals I've seen would do more harm than good - bailing out investors, lenders or speculators who, instead of getting a free pass, should be accountable for the risks they took," he said. "

I believe our efforts are best focused on helping homeowners who want to stay in their homes."

More could follow Bear Stearns

There remains a vast quantity of financial assets of doubtful value that will expose banks and other financial institutions to the kind of panic that brought investment bank Bear Stearns to the brink of disaster on the weekend.

"When the fifth-largest investment bank is in trouble, you have to become concerned about the solvency of the system and the banks in the system," Ms Auster said.

The rest/source here!

[quote]
"I've been asked many times whether we will have another Great Depression," said David M. Kennedy, a Stanford University history professor and the author of "Freedom From Fear," a Pulitzer Prize-winning history of the Depression and World War II. "My standard answer is that we won't have that one again -- I'd be surprised to have one of that seriousness and duration. But that doesn't mean we wouldn't have a catastrophe we haven't seen before."
Source Here.
[quote]

And, I think that this statement was meant to re-assure!!!!???

by KaptainSteve Mon Mar 17, 2008 8:45 pm

Folks, fasten your seatbelts, we're in for a bumpy ride!

Third Bank Collaspe!

Third Bank Collaspe!

Re: Third Bank Collaspe!