Are the banks failing under their own weight?

[Aviation Pro]

Have they become such a twisted, convoluted industry that there is no way to unfuck them?

[havocmom]

1. thinkin that bit of allowing banks, brokers, insurers to do each other's jobs

isn't workin out so well. They got greedy and tried to be all things. Seems that and workers not making money has made a mess alrighty

[Warpy]

2. Some of them are falling under the weight of "assets"

that were nothing but worthless paper issued by hedge funds and backed by bum loans in California and Florida.

Actually, they're starting to fall because they were standing on thin air, not because they're crushed under some weight.

[Muttocracy]

4. thin air - better analogy you've got there nt

[wtmusic]

3. What banks are failing?

News to me.

[madrchsod]

8. bear stevens..i think that is the correct spelling..

went from 57 down to 2 in three days.....i`d call that more than failing. i think the taxpayers are paying the buy out..sam seder was talking about this buy out today..

[halobeam]

11. this is how I interpreted it..

Bear stearns bought out by JPMorgan, which the Fed, "fed" 30B in tax payer money. IIRC, that doesn't seem promising. A full percent rate cut by early morn. tomorrow is a possibility to stop the hemorrhaging, but in the end will drop the value of the dollar more (at 70."something")right now, and gold soaring up to 1031. Big dumps of the mighty (not), dollar.

Little sip of Brandy and bedtime for me. I'm saving the good stuff for pain meds, when/if it's needed for myself or family members.

Buy liquor, refill RX's and first aid kit, get water and canned proteins, plant food, wind up flashlights and radios and sit back. What else can ya do?

Panic won't bring any good change. I'm gonna chill. I'm hoping they still can pay out the disability checks... ya think they'd do it in euro? lol

Gotta laugh: I think of my Dad's statements in times that are weary:

"If the world ends, it damn well better be when I'm awake and not in the middle of the night. I don't want to miss something THAT incredible."

:rofl: That statement always helps me keep humor when it's needed the most.

[blue sky at night]

10. Might try reading the front page of the NYT......

its getting a little weird out there......

http://www.nytimes.com/

[Double T]

5. banks and financial entities are falling because they are ALL being run by............

CONServative criminals. Total collapse will occur BEFORE anything is done. 'The People' must become INVOLVED to facilitate the unfucking.

[Speck Tater]

6. The problem is they are buying dubious assets on 5% margin.

When a CDO loses 5% of its value, their investment is wiped out.

After stock market speculation on 5 to 10% margin caused the 1929 crash, it was outlawed. But investment banks are still allowed to leverage their investments with as little as 2% margin.

Bear Stearns had purchased about $400 million in securities with $11 million in margin (down payment). So when that $400 million worth of paper dropped to $389 million, their $11 million in margin was wiped out, and their lenders put out a margin call against them. They had no more money left to meet the margin call.

That's an over-simplification, but that's the gist of the situation.

[Ichingcarpenter]

9. Good analysis and the banks are not failing but the

institutions surrounding them are in trouble.

They had to pull out a 1932 new deal banking law to save the investment firm.
The law was used in the 30s about 6 times and was
threaten to be used in the early 60s but wasn't.

[madrchsod]

7. their own greed is a better question...

it`s nothing more than plain greed and arrogance.