No Recession Here – Move Along, Move Along
The 2nd largest bank failure in US history occured late Friday as Federal officials closed the doors on IndyMac. As reported by the LATimes, the government spent “most of Friday trying to knock down rumors of a government bailout”.
In other words, the federal government was busy doing what they do so well, Lying to the American People. Nevertheless, bank depositors were greeted by this notice on their website:
This is what it looks like when you can’t have your money.
The Running Results
Since June 27th, about 1.3 billion dollars have been withdrawn by depositors of the bank. The LATimes goes on to say:
IndyMac is the second-largest financial institution failure in U.S. history, following only Continental Illinois Bank, which had assets of about $40 billion before it was shuttered in 1984. It is the fifth FDIC-insured failure of the year. Reich emphasized that though other financial institutions remained on the agency’s danger list, he believed most of them would be able to work their way back to solvency.
“The IndyMac situation is unique. It does not signal a direction for the industry as a whole,” he said.
Let me do my patriotic duty and state that again: This ‘does not signal a direction for the industry as a whole’.
Well, saying it doesn’t make me feel any better. I wonder how it made Reich feel? The truth is, that the only thing holding most banks together right now is our blind faith. Over the coming weeks I’ll be writing more in earnest about our current financial state.
We are in a bit of trouble, folks, and it seems our government thinks its job is to lie to us about it. This IndyMac failure is most definitely not the end of our non-existent recession.
I am Jon, and I know what’s in my wallet.
Read more about IndyMac Failure at ThinkProgress