Indymac collapses

[Smokey Bear]

I've got a portion in etf's shorting the market like SDS which shorts the S&P. A portion in the Merk Hard Currency Fund which holds a basket of foreign currencies. It's a dollar play and a portion in Gold and the rest cash. Good luck to all. The bunker door is now closing!

I was just telling someone this morning that you were probably shorting the market right and left making a bundle. I stll think you're the smartest appraiser in the bunch.

 

[c w d]

IMHO, the economy is "fundamentally in the toilet."

I think your concern is justified to a point. However, what makes you think the money you withdraw will be worth any more than confederate money in 1875?

Nothing in the world. But, I'd rather have "my money" in my hands than be told I can't have "my money", regardless of its value.

 

[Vernon Martin]

I think we as appraisers can see the picture more clearly than the public, because we see the debt implosions and asset devaluations that are about to occur, and these are fundamentally forces which depress the economy. My portfolio is up 52% this year with ETF SKF (UltraShort Financial) and short positions in Freddie Mac and Lehman Brothers, and long positions in oil, gold and solar energy.

 

[CANative]

I did an appraisal of the home of a commercial broker who's been in the business 30 or 40 years. He told me of a recent meeting where a discussion pegged the number of banks (etc) that are about to go under at 15,000.

I didn't even know there were that many banks?

 

[MARK JOLLIFF]

Help me out guy's. If Indy is the 2nd largest failure who was the 1st? My fellow nimrods and I can't remember the name.

 

[MARK JOLLIFF]

I was just telling someone this morning that you were probably shorting the market right and left making a bundle. I stll think you're the smartest appraiser in the bunch.

Thanks Smokey! But like most ego driven males I talk much more about the home runs than the strikeouts! Thanks for the call yesterday!

 

[Workbox]

Help me out guy's. If Indy is the 2nd largest failure who was the 1st? My fellow nimrods and I can't remember the name.

American Home Mortgage?.......It's been so long ago. :laugh:

 

[Scott Kibler]

Help me out guy's. If Indy is the 2nd largest failure who was the 1st? My fellow nimrods and I can't remember the name.

Continental Bank of Illinois

1984

 

[Lloyd Bonafide]

Dodd is just trying to cover for his friend, Senator Schumer, who triggered the run on IndyMac. The bank had problems, but would not have failed without the withdrawal of $1.2 billion in deposits initiated by the letter from that doofus from New York.

Schumer just hastened the process, but there is no way that Indymac could have survived the next two years anyway. No chance. With the number of REOs that they have right now, and the huge number coming, and the average dollar amount that they are losing on each REO, all of their cash would have been gobbled up in no time.

 

[Terrel L. Shields]

I knew Cookie Man would know...and Continental went under for backing loans from a suburban bank in Oklahoma City called Penn Square... It was Penn Square who went under first...basically the first bank since the depression to cost the FDIC money. Penn loaned oil field entrepreneurs oodles and gobs of money pushed the loans off on Continental and dum dums like them, charged servicing fees, etc. From a tiny little going-no-where bank to drinking beer from a shoe [a killer story when told by someone there] Check out this link http://www.sjsu.edu/faculty/watkins/mon.htm Jennings got into a fist fight once at a BBQ years later with another equally unsavory character that was talk of OKC for weeks. Both were not spring chickens by then. THe other guys name escapes me offhand but he cheated his own son in a bankruptcy proceeding, who was then accused of covering for the old man. People who knew them said they hadn't spoke in nearly 2 years.

We'll be entreated with tales of similar woes in the next couple years as this all unravels.

As for shorting the market. It's great until capitulation day (like in 1987) when the shorts were programmed to trade but could not trade being delayed by hours which often put their positions far worse than they intended. That's what froze up the market then.