Notwithstanding the happy talk by government economists and bank regulators as well as by Wall Street financial experts who want to sell us all financial products, the New York Times is reporting July 12 that IndyMac Bancorp failed Friday night and was taken over by the regulators. IndyMac Bancorp used to be part of CountryWide Mortgage Corporation, the largest America mortgage company which was recently taken over by Bank of America when CountryWide became effectively insolvent.
As of last March, IndyMac held $32 billion in assets, most of which were deposits guaranteed by the Federal Deposit Insurance Corporation. The FDIC now owns the bank and will operate it until is can be sold. When it is sold, the American taxpayers will make up the losses that remain. This failure is a direct result of the refusal of the bank regulators to properly regulate the risks that were taken at the demand of conservatives in the regulating agencies when IndyMac loaned money in recent years.
This Major bank failure is on top of the talk earlier Friday of a possible government takeover of Fannie Mae and Freddie Mac by the U.S. government that threatens to stick the American taxpayers with an additional $5 trillion of questionable dept. The credit crisis that the financial pundits have been claiming would be over by the end of 2008 is getting worse.
Since the current national public debt is roughly $9.5 trillion dollars (over half added by Bush 43) which is a major reason for the collapse of the international value of the dollar. The collapse of the dollar has been the major reason why the price of oil is rising to previously unimaginable levels. When the U.S. public debt increases by over 50%, the dollar is going to collapse. That means even worse than it already has this year and last. Three dollars for a Euro, anyone? $300 per barrel of oil?
As the dollar tanks, the inflation is going to skyrocket. And more banks are going to fail.
The Reagan Revolution/conservative movement has done its work. It has destroyed America's middle class and most of America's wealth and power. Only the superwealthy will escape unscathed, as they always do. The only question remaining is how bad it will get and how soon we understand it.
The tough times for America are ahead but getting here quickly. Count on it. It is too late to stop the disaster. Just remember. The conservatives/Republicans have created it. And the federal judiciary they have packed with members of the Federalist Society will be sure to keep the idiocy in place for the next generation. And on top of all that, they destroyed Iraq and handed it to Iran while ignoring effort that might control al Qaeda.
Is there anything the conservatives/Republicans represented by the Republican Congress and Bush 43 - America's worst ever - possibly the most stupid, even insane ever American occupant of the Presidency - have not screwed up royally? Certainly nothing that compares with the disaster they have left behind them. The next decade will be spent learning everything they have done to America, and the next two generations or more will be spent repairing the damage.
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