What is Digg?58 Comments
- KingPsyz, on 09/06/2008, -4/+22this has been a long time coming since McCain's son bilked them out of a large sum of money and abruptly quit.
- inactive, on 09/06/2008, -1/+13I haven't looked at the numbers, but in the 80's there were many more thousands of banks then there are now, and banks are much larger institutions now than they were back then. So as each bank crumbles (and I think the indications are more will fail) they represent a greater share of the economy than those single branch office failures that happened in the 80's.
- KingPsyz, on 09/06/2008, -1/+10For anyone that lives in Las Vegas or even just Nevada this is a pretty big deal. Silver State is a pretty well known and popular institution and a lot of people have to be freaking out right now.
- WakeUpToFreedom, on 09/06/2008, -1/+8Wrong, YOU bail them out!
- Opiate, on 09/06/2008, -1/+8Yeah except the feds bail them out, perpetuating the problem.
- marabout40, on 09/06/2008, -1/+8"A week after Mr. McCain's departure, the Henderson, Nev., company reported a loss of $62.7 million in the second quarter and said its capital -- the bank's cushion to absorb losses -- had eroded significantly. At the same time, Silver State announced the resignations of its chief executive and chairman." http://online.wsj.com/article/SB121876461747243159 ...
- anarcurt, on 09/06/2008, -0/+5We haven't yet seen the worst of this financial crisis. The FDIC itself is expecting to run through all its reserves and have to borrow from the federal government. Some rumors are that a major national bank or brokerage will fall within the next six months. Wachovia is in pretty bad shape. Our financial system is in a lot more fragile state than when the savings and loan scandal hit. Most financial companies have written down a lot of their reserve capital and are tapped out. They are begging for money. One more significant jolt could start a ripple effect that could easily break 10% of the banks in this country.
- inactive, on 09/06/2008, -1/+6If it is any comfort, if this continues your mattress will not help you, because this certainly appears to be the beginning of a deflationary depression, and... When that starts your money wont be worth anything. You are gonna want to have a nice mattress though, it will be the sort of thing that you can use as barter.
- allaboutdatiki, on 09/06/2008, -1/+6and another one down, another one down ... anyone seen my mattress?
- plasmoske, on 09/06/2008, -0/+5http://how-to-spell-ridiculous.com/
- spuggy, on 09/06/2008, -0/+4Actually, if it's deflationary, the value of your money now is worth more than your money tomorrow.
That's why deflation is so bad, it removes incentives to invest your money, and people hoard it, which grinds the economy to a halt. - MajorMauser, on 09/06/2008, -0/+4Yet.... They have opened more banks in my Town. I must have 8 Banks in a 5 min radius.... how many McDonalds or Burger kings & 7 Elevens you ask? 1,1 & 5
- inactive, on 09/06/2008, -0/+4Why would people freak out? Do they not know that their money is insured? (Assuming they were smart enough not to exceed $100,000 per account).
- inactive, on 09/06/2008, -1/+5spuggy,
I was researching to clarify. But I was reading the wiki on the great depression, and boy it really rhymes with what we are looking at now. There are a few things that are different, but, yeah, bank failures, property values in decline... no fed action would stimulate it. Average guy on street was overextended. etc etc etc
And it really bummed me out and I am just gonna curl up in a little ball in the corner and cry. - oldhick, on 09/06/2008, -2/+5Do you know how long it takes to access your money when a bank closes? Some people can't wait a week or two weeks with absolutely zero access to cash
- KingPsyz, on 09/06/2008, -1/+4exactly, just because it's insured doesn't mean you get it right away. most people live check to check here
- hwy9nightkid, on 09/06/2008, -0/+3thats how most white collar crime works in the US..it's perfectly legal
yea we knew the company was going down, but at least upper management can get out before the books are revealed. $$$ - Future2, on 09/06/2008, -0/+3@oldhick
FTA:
"Silver State Bank customers will continue to have access to banking services over the weekend, and normal business hours and access to banking services will continue on Monday, September 8, 2008, under the control of the FDIC." - inactive, on 09/06/2008, -0/+3aflaks,
Fanny and freddy are small?
I don't think small means what you think it means... - hwy9nightkid, on 09/06/2008, -0/+3I love how they always wait for a weekend to do these things
- raydeen, on 09/06/2008, -2/+5And so it begins....
- marcomc2, on 09/06/2008, -0/+2*****. Oh my god things keep getting worse. Where's the hope?
- hwy9nightkid, on 09/06/2008, -0/+2yea, banks are heavily regulated.. its the lying about solvency and getting people into loans they shouldn't have that was unregulated.
- Laminarcissus, on 09/06/2008, -1/+3For the record, "bilked" usually indicates that someone stole the money. I haven't seen any allegations that there was any wrong-doing other than mismanagement.
- richmomz, on 09/08/2008, -0/+2Yes, ever notice the high proportion of people with connections in the banking industry in positions of power (not only in the U.S. but in most western nations?)
- hwy9nightkid, on 09/06/2008, -0/+2***** that, I'll put my US dollars into Zimbawe dollars..you get MILLIONS!!
- oldgal, on 09/06/2008, -2/+4I'm definitely not a McCain fan, but this is a misrepresentation. He was on the board for only 5 months and there was no indication of wrong doing (from the link above). I would, however, believe that he stepped down to try and avoid embarrassment to his father - in the same situation I would probably do likewise.
- writer512, on 09/06/2008, -1/+3And John McCain wasn't the only member of the Keating Five either!
BTW www.thenakedtruthbook.com is having a book release party today. A diamond in the rough for sure. - Laminarcissus, on 09/06/2008, -0/+2I don't think "fired in disgrace from an institution in federal receivership" is quite the financial windfall or career boost you're making it out to be.
- richirwin, on 09/07/2008, -0/+2First John McCain's involvement with Keating and his bank.
Now McCain's son and Silver State Bank.
Great family. - LoveWidescreen, on 09/06/2008, -3/+4And yet if this was just another bank during a time where the economy wasn't an issue or this wasn't a presidential election year, no one would say anything. But this article gives Digg a chance to smack down McCain (or republicans in general), so it hits the front page ...
...and yet McCain's son was a MEMBER of the board. He wasn't the entire board, nor did he run the bank by himself. But don't let that stop you from finding an excuse to show how biased the Digg user base is.. - aflaks, on 09/06/2008, -2/+3that is quite true, but if you notice, the majority of failing banks are really rather small, that took on horribly risky positions based on bogus evaluations. The fed bails banks out based on its "too big to fail" rhetoric to prevent a really serious bank from death and destruction which would hurt the client more than it would cost to bail out.
- reddikilowatt, on 09/06/2008, -0/+1Those many thousands of banks were mostly branches of larger corporate banks. In the 1980s, each branch was considered a stand-alone entity, sort of like a franchise. With the 1990s banking reforms their status changed, and now corporate banks are considered one entity.
- Thyris, on 09/06/2008, -0/+1Nothing to scream and shout about, but with rumors of government seizure of the two largest mortgage lenders looming, as well as the continued seizure of banks is enough to warrant at least some concern. Most of these banks are FDIC 100k, if you happen to have more of that in those banks, guess what, it's gone, and no one's going to listen to someone cry to get it back. Do you really think it's a good thing to have our banks and homes owned by the government?
- guntario, on 09/06/2008, -1/+2I may have made a spelling error, but that does not make banks somehow mystically unregulated. I guess the Fed doesn't exist, or we don't have a fractional banking system. It's a myth...
- Thyris, on 09/06/2008, -0/+1It began a long time ago.
- Mpwns, on 09/06/2008, -0/+1this guy i read about on digg said the housing market was gonna crash almost 2 years before it happened and they blew him off, a few months in that story they asked him what would happen next he said banks will fall and one will be a major bank, and i must say looks like he is right again its already starting. and what sucks is i was gonna buy a car this month nothing fancy something to get me to a to b and once in a whille c. but with this news and that story im gonna have to rethink about that car and just use my feet like ive been using for the past few years.
- AllenFresno, on 09/18/2008, -0/+1Wachovia is going down in no time..
- Mpwns, on 09/06/2008, -1/+2if you look at the events from the depression leading up to when we went to WW2, its like history repeating it's self.there is no doubt in my mind war with Iran will be the start of WW3, the domino effect is in full swing.
- richmomz, on 09/08/2008, -0/+1Sure, be sarcastic about it. But you better not cry when your money and job are gone.
- KingPsyz, on 09/06/2008, -0/+1you do realise there will be a run on the bank first thing monday if not this morning and just like happened with the last round of takeovers armed guards will turn customers away or make excuses as to when and how they can make withdrawls and close accounts.
- guntario, on 09/07/2008, -0/+1Do you work in the banking industry? I do. I think you should study the relationships between the Government, the Fed, Fannie, Freddie and local banks.
- savagesteve13, on 09/07/2008, -0/+1The bank failures are nothing compared to Fannie Mae and Freddie Mac. Who was the genius that privatized them?
- richmomz, on 09/08/2008, -0/+1McCain saw this coming months ago - too bad investors didn't get the same courtesy.
- richmomz, on 09/08/2008, -0/+1I think you mean an INFLATIONARY depression, not deflationary.
- richmomz, on 09/08/2008, -0/+1Well, Fannie-Freddie just threw in the towel and had to be seized by the Treasury department. That's about 5 trillion worth of assets right there so I would say that's pretty major.
- richmomz, on 09/08/2008, -0/+1Not with either of our main candidates, that's for sure.
- richmomz, on 09/08/2008, -0/+1Yep, Friday evening has become the mandatory bank failure / financial crisis announcement day.
- richmomz, on 09/08/2008, -0/+1Don't be so sure that the FDIC will be able to bail out everyone - they only have 50 billion to cover 3 TRILLION worth of insured deposits - the previous bank closings at IndyMac and others have almost tapped them out already and they've asked for a handout from the Treasury (aka - the taxpayers) which means taxpayers end up paying for their own bailout. What a deal!
- inactive, on 09/06/2008, -4/+4Oceania has always been at war with Eurasia and allied with Eastasia
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