That is NOT a list of troubled banks. I read that list as being a comprehensive list of ALL banks in the country.

I will admit that I am not familiar with the Mises School of thought. I do appreciate your continuing to raise interesting points.

I still need to look into the BDI (Baltic Dry index).

I will inquire from KD as to whether he thinks any more loan officers may be culpable. I do know that some have been charged but certainly not nearly as many as deserved it. Over and above that the management of many of those companies should be charged.

I did find it very interesting that the owner of Ameriquest was a big Bush benefactor and ultimately the Ambassador to the Netherlands. Wow!!

I still wonder - are any of these fraudulent loan originators going to jail? Even though the companies are out of business, is there any culpibility for the loan officers.

Very good pace and management of the material during the show

All’s well that ends well !!

http://www.nytimes.com/reuters/2009/01/04/business/business-us-financial-regulation.html?pagewanted=print

We plan on trying to stay on top of and ahead of these stories here at NQ.

In all seriousness, I posted that list for the simple reason that I believe more information is better than less.

In regard to the assets listed, please understand that those numbers are in thousands. For example if the assets shown are $20,000 that equates to $20 million (20,000,000).

Understand?

If you still have assets greater than those numbers, then I would say you have a “high class” problem.

Again, in all seriousness. Make sure that your assets are below the FDIC limit of $250k per account. I am assuming they are.

Go back and check the Texas Ratio. I would be most concerned with the ratio if I were an equity holder first and foremost. Then secondarily a creditor (as in you own bonds issued by the bank).

If you are a depositor below the FDIC insured limit…then you should be fine.

Breathe in…Breathe out.

Please let me know if you understand all of the above.

Hope this helps.

I know Indymac had a holding company that was very interesting, and I couldn’t figure out if the holding company was completely removed from the risk of Indymac’s failure. Again, the issue is that those paid to take risk are not actually taking it. It seems to me that failure is passed on while only the profits are kept.

The fact that Indymac is now at the bottom is, IMO, a reflection that the institution has recognized the losses and wiped out shareholders equity.

It is now a private entity.

I started to try to find who regulated who and found a lot of confusion. I will continue to persue it and send it to you when I get sometning.

While investment banks, hedge fund managers, and most asset managers were investing in and promoting sub-prime mortgages and the like, John Paulson was “going the other way.” In 2006, he started shorting sub-prime originators, the ABX (the CDS index that tracked the sub-prime market) and the investment banks that most heavily trafficked in this sector. He personally and the investors in his fund made tidy fortunes in the process.