A Big Bank Goes Down

IndyMac, a 32 Billion in assets thrift, was seized by the FDIC this afternoon.  It was the second largest bank failure in HISTORY.

IndyMac is only the first of several BIG bank failures to come (and there will be HUNDREDS of regional bank failures).

There are 2 mean edges to this economic sword.  The failures are going to blow up the purchasing power of the U.S. $ while at the same time the U.S. economy's primary source of private employment, the "FIRE" economy (of Eric Jansen fame) - Finance, Real Estate & Insurance - is briskly contracting.  

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Why not just give everybody a home?  That strategy worked out great for the Soviet Union, right?  Sorry... wrong universe.

There are so many bills to "keep Americans in their homes"  working their way through Congress it is hard to keep them all straight.   Forget it, you can't.  The ONE THING I can tell you WITH CERTAINTY - They ain't doing it for the home owner's benefit.  They are trying to salvage the "wealth" of the nation, and they are quite OK with ENSLAVING the American people if necessary in order to keep them tied to the mortgage yoke.  But people are NOT dumb when it comes to what is in their personal best financial interests (ever hear one of Howard Stern's shows where he asks a bunch of strippers who the Chief Justice of the Supreme Court is, or who the Vice President or the Speaker of the House is, and not ONE of them can answer, but ask them how many lap dances they have to do to pay their rent and they all answer in less than 1 second?), and it just is not in their best interests to keep paying a higher monthly payment than if they just walked away.  After all, there IS NO equity to be built up in homes for years to come.

Most of these bills are coming from the Left.  Strange, but keeping folks in these houses at those mortgage balances does not benefit "The People", it benefits CEO's at Goldman, Merril, Lehman, Bank of America, etc...  Tell you what fellas, please don't look out for MY best interests.  With friends like these who needs an ENEMA?

Lastly, if you are really and truly in favor of helping the common man, write your Congressman and tell him we need to abolish Fannie Mae and Freddie Mac.  Last time I checked, their mission was to make housing AFFORDABLE for Americans.  HAHAHAHAHAHAHAHAHA! LOLOLOLOLOLOL!!!!!!  Is that a SCREAM, or what?

"And the hits keep coming"...

So Fannie Mae and Freddie Mac, socialist machinations from our Psychitzophrenic past, given a limited mandate by Congress to keep housing affordable (HAHAHAHA!! sorry, that just KILLS me), not only fails to help the common man in THAT regard, but to add terminal illness to injury, will likely end up as the cause of the FINAL collapse of the purchasing power of the U.S. $ (price inflation), and as we all know, price inflation is a BLESSING to the haves, (at least in the beginning of the cycle) and a nightmare for the have nots.  But at least the have nots don't know, for the most part, what is happening to them.  

So they got that going for them.

And the beat goes on...

Mentatt (at) yahoo (d0t) com