Housing Doom

– Off-topic –

Uh oh. Canadians will recognize this classic bureaucratic dodge: “We couldn’t do anything because of the ongoing investigation.”

Bottom line — the FDIC problem list may not be listing the biggest problems

“Why wasn’t IndyMac on FDIC problem list?”, by Kathleen Pender, San Francisco Chronicle, July 24, 2008.

However, 96 percent of the banks that failed between 1990 and 2002 were first on the problem list, according to an FDIC study.

Why wasn’t IndyMac?

FDIC spokesman David Barr said it wasn’t on the list because the Office of Thrift Supervision, IndyMac’s primary regulator, didn’t put it there.

The San Francisco OTS office was the direct supervisor.

OTS spokesman William Ruberry says his agency was aware of IndyMac’s problems and started its regular exam in January, four months ahead of schedule.

“We called in the FDIC to join the exam with us early on in the process,” he says. Both regulators “were fully aware of everything to do with IndyMac’s situation. It was not a surprise.”

Ruberry says the OTS could not issue a final rating until it finished the exam, which took about six months. At that point, it went on the problem list.

“Bankrun,” says Igor … shhhhhhhh …

This guy was the one guy who got me to find out how I was registered and how to vote in the primaries. Been registered since the late nineties but never used it once.

He’s been consistent in his message for decades, as a doctor had first hand experience on health care and how government backed medicare was failing, and the guy could go head to head with a PhD’d Bernanke without missing a beat.

During the primaries, it seems so many folks went out of their way to sweep this guy under the rug.

Even the Republican party wanted nothing to do with him. Easy to see why too, he called them at their own game. Just about every other candidate was for bigger government (for the sake of safety – what was that quote again about giving up freedom?)

I think he got a raw deal because of his stance on the war in Iraq. The economy wasn’t in quite the dire situation it was in now.

And yet, he seemed to be the only person who was preaching from the doctrine of Chicken Little about the sky falling down.

And it did =/

I don’t agree with everything he says, but when I watch the news and see the Repub candidate that “we” chose (I’m thinking I’ll just change to an Independent now) can’t even remember which country borders which country…

It’s just brutal.

Personally, I’ve come to the conclusion that folks don’t like details and explanations. I mean look how many never bothered to read their own loan docs or purchase contracts! They just want to know WHAT and now HOW.

We’re going to CHANGE things and make things BETTER.

(details to [possibly] come at a later date)

That’s what wins elections.

I think Ron Paul is going to be the only guy who can continue to speak on these things and without saying it, have the words “I told you so…” echo in our heads.

John-

Gimme Credit?

And we take heat for our strange name!

Ron Paul for President.

John -

I’m going to kick the hornet’s nest here: I don’t see how the failure of F&F “further squeezes American families” unless American families are long a boatload of FNM and FRE. Maybe the bailout squeezes families more?

agnostic (#9) -

The simple story is that the present crisis has destroyed the illusion that Congress could be responsible for $5 trillion of more-or-less shaky assets without carrying same on their books. The farce of pseudo-privatizing (and cloning) Fannie during the Nixon years simply created an off-balance-sheet vehicle that is now being consolidated. So that $800 billion raise to the debt ceiling Congress has sneaked into the bailout bill is actually more than six times too small.

The disambiguation of the implicit guarantee is what’s killing us. Once GSE debt holders see through the smoke agency yields have to rise, driving up mortgage rates (that are already starting to rise a bit). That’s what will squeeze families (who are homeowners, when they renew their mortgages).

All well and good RP and even though I caucused for you IT’S TOO LATE BABY. We are past the point of no return. You are nothing more than an “I told you so” The world is now locked in a BS Death Spiral. Tax Payer Bailout is the new Euphanism for IT’S NEVER GOING TO BE PAID BACK!