Skip to comments.BANKING CRISIS DWARFS THE DEPRESSION
Posted on 08/25/2009 7:03:34 AM PDT by UncleVanya
Assets for failures for [the current] crisis total $7.1 trillion to date. This is nearly eight times the assets compared with the inflation-adjusted total for the S&L crisis. The data for bank failures in the Great Depression is shown in the following table. The total deposits involved were about $7.6 billion over a span of 13 years. Adjusted for inflation, that is $100 billion in 2009 dollars. The size of the crisis today, adjusted for inflation, is more than 70 times larger than the entire Great Depression.
It's unlikely that bank failures can peak until we are close to a peak in mortgage foreclosures. Karen Weaver, global head of securities at Deutsche Bank Securities, projects that housing prices will continue to fall into early 2011. If that is the case, foreclosures could continue at a high rate until then. Many more banks may go under in such an eventuality.
A "W" recovery, dipping back into recession, even if only for a couple of quarters, would push unemployment significantly higher and increase the mortgage foreclosure rates above the gloomiest projections made today.
How does this bank crisis compare historically? There is no comparison.
(Excerpt) Read more at thestreet.com ...
It’s frightening how the MSM is playing whatever tune President Bernanke and his congress of FR governors tell them to play.
The banking system in this country is about to implode completely. It is probably too late to prevent this regardless of whatever tactics we take (even a free-market approach).
The system needs to fail to clean out the bad debt and the failed risk.
It is going to hurt a lot more than the pain we’ve suffered, partially because of the government’s attempt to put off the eventuality of collapse.
The FR and the banksters love this type of situation. They make loads of money and are able to buy up all the good stock for pennies on the dollar, rebuild the market, and trip the lever once again in a decade or two, and clean up again.
This time around, though, we don’t have manufacturing and we won’t have foreign nations willing to purchase our debt.
THERE WILL BE ZOMBIES, WHO WILL RIP AT YOUR SKULLS AND EAT YOUR BRAINS!!!!
Two analysts have said in the last week that bank failures this year will total between 200 and 300. We have had about 79 so far. Right now the FDIC does not have enough reserves to handle another 79. Could be interesting.......
This is a very real danger and people need to be prepared. My teenage son is reading this book to be ready:
Thanks, good input!
The street is owned by cramer
Cramer bleeds Goldman sach
Despite the great great depression sach is doing well
It’s all BS
Hahahaha... I remember a few years back when I mentioned the housing nonsense and its collapse was going to make the S&L collapse look like nothing, and I was mocked and laughed at.
It is really no wonder fauxbama, a man who does not remotely meet the definition of “natural born citizen” even if he was born in Hawaii, sites in the White House. Facts, the rule of law and reason just don’t matter to people anymore, too much of the population has been utterly dumbed down by a public school system that has engage in 40 years of absolute educational malpractice.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.