Comments on: IndyMac Bank: Bank Failure, Long Lines, and a Real Home of Genius. Another Reason why IndyMac Bank Failed.

By: SoCalite

SoCalite — Mon, 21 Jul 2008 03:37:51 +0000

I don’t understand where the 30% drop in SoCal prices is located. As far as I can tell, it’s only the crappiest houses in the crappiest neighborhoods that are seeing any significant depreciation in value. Concerning Pasadena: most of the city is still in the $800k+ range for 2+1 condos. Houses that aren’t in gangland are $1M and up. I don’t understand who can still afford these.

By: Reena

Reena — Sun, 20 Jul 2008 02:23:09 +0000

In re to the question about IndyMac and how much of the FDIC’s fund
it will take:

Since this wasn’t a little fish (32 billion) it will take about 10% of
the FDIC’s reserves to cover.

So we have 9 more Indy’s the FDIC can cover and that’s it.

I just love the Internet – when is our government going to realize that
we can and do check out other sources of information.
It’s pretty sad when you constantly have to read between the lines
every time you turn on the tube and watch the news.

I was playing with my local area’s foreclosure and sales listings.
Strange when the number for all pending foreclosures and REO’s
is as high as the number of properties for sale.

Came across some real homes of genius. I swear there is one house
that looks more like a simple wooden shed but they still want 200 000
for it. I am going to watch just how long the “cottage” is going to be listed.

By: Scott

Scott — Sun, 20 Jul 2008 00:41:00 +0000

Here’s the deal with the banks. Instead of having CPA’s ‘certify’ their accounting is honest CPA’s use incredibly complex rules to obsfucate what is really happening. Anyone care to recall Arthur Anderson PA and ENRON? You could take anyone of those people standing in line outside Indymac and let them inspect the loans that bank had made and I guarantee you they would have been more on top of what was going on at that bank than the FDIC was. They would have looked at a loan that was 90 days past due and said ” that loan is non performing’ but a banker would have said that is loan ‘held for investment’ or that they only count loans that are 120 days or 180 days overdue as ‘non performing’.
Its a sham and everyone knows it but forcing the banks to come clean would ruin them so the regulators wink and hope that lowering interest rates, allowing the banks to nickel and dime their depositors and good borrowers to death for a year or so that they will make enough money to cover their bad debts. It won’t work because they have made so many horrible loans that even Jesus would have been forced to pull out his whip and drive the money lenders from their temple once again!

By: el_guapo

el_guapo — Sat, 19 Jul 2008 18:56:34 +0000

I’m sorry, I have to call BS on a baby boomer crying that they have it rough. The Greatest Generation probably gave you an inheritance, then you spent every nickel you earned, will reverse mortgage your way through retirement (no inheritance for your kids) and then bankrupt Social Security. How about the folks under you? I don’t know many people in the 40 year old age group harboring a delusion that we’ll get a penny of Social Security. But we’ll get record debt from the boomers. I want to puke when I see Dennis Hopper talking about blowing every last nickel in that retirement ad. Don’t grow up, man! Please.

Caveat: Many great boomers out there, many morons in my age group, etc.. etc. Just quit acting like a victim as a generation. It is tiring for everybody else.

By: Tricia

Tricia — Sat, 19 Jul 2008 17:36:22 +0000

The question above regarding regarding the 50 billion FDIC total funds, I asked that question to the FDIC man inside Indymac. He told me, get this, that the government would just print more money. He also stated that they would just start charging banks more for FDIC insurance. He then told me that the banks would pay for it not the customers. I thought to myself, yeah, the banks won’t pass that on to their customers?????