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Banks and Credit and Gold and Jobs

KUCHKUCH Posts: 1,186
in Precious Metals
Analysis: There will be banks that declare bankruptcy. We'll be left with some "charter banks" that will monopolize rates and available credit. Credit will continue to be tight as population is not intersted in acquiring loans in this depression. Gold will continue to move upward as USD continues to decline, and interst rates will remain low. 17% plus unemployment will continue until govn. lowers taxes, stops federal spending and brings back the free market system.

If anyone is a banker on this forum, would be interested in your opinion. Next week, I have appt. with banker friend and will ask a few questions to confirm above. Answers will be valuable.

P.S. If more baks are to fail, who would keep $700,000 in a CD? Aren't you worried it might be lost in a collapse?image

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    gsa1fangsa1fan Posts: 5,566 ✭✭✭
    Last week on TV. The spokes lady for the FDIC was on. In her speech she said,

    124 failed banks in 2009

    550+ banks in trouble

    FDIC basically broke- where does your confidence lieimage



    Texthttp://events.vcall.com/VCall/EventReplayLaunch.aspx?IID=f27ab4fd-f125-48d0-b426c0451889cb37&BID=1&VID=68e0b7d2-e288-4dab-a386613d84a85ac3&SID=2933&ln=11%2f29%2f2009+4%3a15%3a28+PM&fn=AnonViewer&OID=2643&Email=N%2fA&Title=FDIC%3a+Quarterly+Banking+Profile%3a+November+24%2c+2009&bgcolor=CCCCCC&st=719&et=2400&dur=1681
    Avid collector of GSA's.
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    WeissWeiss Posts: 9,935 ✭✭✭✭✭
    Remember that during the S&L crisis of the late 1980s, nearly 750 Savings and Loans failed.

    Things are not good right now, but they're not dire, either. 15% of residential mortgages are in some form of trouble. But that means 85% aren't. And in some locations, virtually none are.

    Our largest and most established local bank's stock had been trading around $20 per share for a decade and paying a pretty good dividend. But they'd branched out into the Florida market and are paying the price for large foreclosures in that area now--the stock fell to $4 per share.

    So I bought 1k shares image





    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
    --Severian the Lame
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    FistFullOfDollarsFistFullOfDollars Posts: 351 ✭✭✭
    Some might like this link I found a while back in a investor hub.

    Implode-O-Meter



    I have a very strict gun control policy: if there's a gun around, I want to be in control of it - Clint Eastwood
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    roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Our largest and most established local bank's stock had been trading around $20 per share for a decade and paying a pretty good dividend. But they'd branched out into the Florida market and are paying the price for large foreclosures in that area now--the stock fell to $4 per share.

    I'd be very concerned as to what the bank's exposure was to otc derivatives. It really matters little how much cheaper the stock has gotten or long it has been trading at X dollars if it's weighed down by legacy assets that can't be sold. This information is available on line via an FDIC link.

    Since the larger state and regional banks have all dined at the otc derivatives table I think the largest 200 banks will drive the problem/solution while everyone else has to tag along or toss in the towel. Only the purest of local banks will escape the downdraft. My own bank has an excellent reputation throughout Connecticut yet still has a 5% exposure to derivatives...enough to cause serious problems. There are some larger regional Connecticut banks with up to 15% exposure to otc derivatives. Overall bank's financial health/perceived net worth is very closely tied to the govt's too-big- to-fail banks and the FASB derivative rulings.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
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