did you notice the fail of IndyMac Bank on Friday in the USA? I read about it by pure accident on the headlines but merely two hours later I could hardly findit anywhere nor could I in the European news channels today. Actually I had a hard time googleing some article to link for you. It’s hard to believe though that this has been due to unimportance for the closure is referred to by Reuters as the “second-largest financial institution in the U.S. history to close”. I guess this should be worth a headline especially in summer where the media traditionally has little to report on.
Anyhow what happened apparently is that due to worries about the bank’s liquidity its depositors withdrew their money these days which ultimately forced the Federal Deposit Insurance Corporation (FDIC) to close the bank on Friday in order to save people’s savings.
Depositors have been withdrawing cash at an elevated pace since late June, when Schumer questioned IndyMac’s ability to survive the housing crisis.
In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts, the OTS said.
Later on Reuters adds:
The takeover of IndyMac capped a tumultuous day for U.S. financial markets that saw stocks slide on a surging oil price and renewed fears about the stability of the top two home financing providers, Fannie Mae and Freddie Mac.
You knowI am not very much into conspiracy theories but for some reason I start asking myself whether it is possible that here news where kept from people for it might make them panic if they realised that financial breakdowns are happening on a regular basis these days. And a panic of this type plus growing distrust in banks could very well cause a lot of more damage. Remember it hasn’t been too long since major bank failures in France and elsewhere. Plus take into account that especially (yet not exclusively) with the USA a whole nation is living on debts with a lifestyle it can’t actually afford anymore. Not a nice situation, not at all.
And with a world (and especially US) economy so much on the line this is where China enters the stage: It not only takes part in the rise of raw material prices by buying huge amounts of them (there have been reports that China’s building huge vessels to store raw oil and other products vital to their economy yet I wouldn’t know about proof). Oil is not the only material of which there might be too little of on the long run. Add iron and steel, gold (used a lot for IT-technologies) and others. And of course it gets worse: China holds a considerable amount of US Dolars – as every country’s national treasury holds foreign currencies – which’s sell-out could ultimately ruin the US’ economy within a couple of months or less. You really don’t need world conspiracy to get a global network of power against each other.
Consider this next time you think about “why doesn’t XY help in XY?” …