FDIC Opens a Massive New Office near Chicago, Preparing For Tidal Wave of Bank Closures....

As many as 5 million Homes and Condo's are facing foreclosure in the next few years , This contrary to what the MSM wants us to believe is going to be
the 2nd in a Double Dip recession.

Is the Midwest about to see a massive wave of bank closings? That is apparently what the FDIC is expecting. The FDIC is opening up a massive new satellite office in the Chicago area that will be dedicated to managing receiverships and liquidating assets from failed Midwest banks. This new facility will occupy 7 floors in an 11 floor building. The office space that the FDIC is leasing is well over 100,000 square feet and will employ approximately 500 temporary employees and contractors. This is a huge expenditure by the FDIC. So will there really be so many bank failures over the next couple of years in the Midwest that a 100,000 square foot facility is required to deal with it?

Apparently someone at the FDIC thinks so.

But this is not the first time the FDIC has done something like this.

The FDIC has already opened similar offices in Irvine, California and Jacksonville, Florida. Each time, the number of bank failures in those states increased dramatically after the FDIC opened those facilities.

So what is going to cause such a massive wave of bank failures that the FDIC will need hundreds of new employees just to deal with it?

Well, as we have reported previously, the financial powers in the U.S. are now moving to reduce the money supply, hoard cash and tighten credit. All of those things cause a slowdown in economic growth.

At the same time, a gigantic "second wave" of adjustable mortgages is scheduled to reset starting this year. This could push the U.S. economy into "part 2" of the housing crisis.

Another devastating housing crisis would absolutely destroy the vast majority of small to mid-size banks in the United States. In such a scenario, the FDIC would definitely be able to make use of the new facilities that they are opening up around the United States.

theeconomiccollapseblog.com... are-expecting

Probably the only thread worth bumping to the top today.
Good job and keep up the research.

WE need to keep our eyes peeled here.


*S&F*


....notice all the garbage threads? Umm, yeah....talk about distractions.

DId you see this reply:

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I JUST WANTED TO MAKE SURE I HAD A FIRM GRASP ON THE SITUATION?

It was from a user on that website...
Source
Good ideals, that guy.

Hmm.. Odd news indeed.

I was just commenting the other day what a crazy job White House Press Sec is- how you have to spin policy live and uncut- remember Dana Perino? That FDIC lady- Sheila C. Bair- same thing. She has to go around telling people they can deal with systemic failure of banks. Its a hard job and requires lying.

reply to post by Sean48


Like your other thread I will look at later, and reserve comment.. Good Find...

Originally posted by Moonsouljah
Hmm.. Odd news indeed.

I was just commenting the other day what a crazy job White House Press Sec is- how you have to spin policy live and uncut- remember Dana Perino? That FDIC lady- Sheila C. Bair- same thing. She has to go around telling people they can deal with systemic failure of banks. Its a hard job and requires lying.

Been a few threads on the 2nd wave of foreclosures coming.

If this isn't that smoking gun, nothing will be.

reply to post by Sean48

I don't know if you need this information to know the 2nd round of ARMs is coming. Its been an issue since the first one.
IF your premise that they're setting up this office in anticipation of another housing crash is correct, then what does that mean? I can think of few scenarios-
1)The FDIC has the capacity to deal with the problem and foresees it; will do so in an orderly fashion. No bigs.
OR
2)they believe it to be bigger than they can handle and want to at least make an effort. This would also imply they expect it and also they have the interests of small/state banks in mind.
OR
3)Something like this (from the article)

There are even rumors that the big bankers do not intend for most small and mid-size bankers to survive the coming crisis. There are whispers that the big bankers see all of this economic turmoil as a great opportunity to "consolidate" the banking industry.

This would mean though they are confident in their abilities to manage the situation and honor a broad amount of bankruptcies but it wouldn't amount to a full, systemic collapse of the system.

Are any of these scenarios roughly what you think this means? A full systemic collapse?
To me when I think of the FDIC it just has to be hanging by a thread but then they're tapped into the Monopoly Money Mint (Fed). Who Knows.

Also, I went to the FDIC(ks) website hoping to see this news mentioned. Didn't but din;t look too hard. But under Press Releases It has a slew of State bank mergers. I have no idea but wonder if this is a usual amount.

Originally posted by Moonsouljah

 

I don't know if you need this information to know the 2nd round of ARMs is coming. Its been an issue since the first one.
2)they believe it to be bigger than they can handle and want to at least make an effort. This would also imply they expect it and also they have the interests of small/state banks in mind.

There is a graph showing the up coming ARM's , but I don't know how to link pics yet , soz. It is in the linked Article however.

I believe they are setting up to handle the Bank Failure's resulting from the collapsing housing market.

reply to post by Sean48

Right


There will be some of that sure but what does that mean for you? What does Bank Failure entail for you?

Originally posted by Moonsouljah


There will be some of that sure but what does that mean for you? What does Bank Failure entail for you?

For me personally , be no immediate effect.
Canada has a solid banking system, hasn't been a collapse in 95 years or so.

We would feel a ripple effect if the American System broke down, our economies are very intertwined.

Look's like FDIC disclosure is coming, or is this just a front.... 1 in 11 banks due to fail, according to this article from CNN






money.cnn.com...

Originally posted by Sean48

Originally posted by Moonsouljah


There will be some of that sure but what does that mean for you? What does Bank Failure entail for you?

For me personally , be no immediate effect.
Canada has a solid banking system, hasn't been a collapse in 95 years or so.

We would feel a ripple effect if the American System broke down, our economies are very intertwined.

Yeah... sorry to tell you Sean.. your way off the mark.

I hear this all the time from my fellow Canucks... but it amounts to nothing more than head-up-your-ass ignorance..

You know that Canada is in the midst of it's biggest housing bubble ever?
You know that Canada owns more sub-prime mortgages than anywhere else in the world?
You know that Canada at every level is running historic deficits?
You know that NOTHING has changed since the beginning of the 'crisis'?

NOTHING has changed but it's supposed to be all fixed and happy?

I am really tired of us canadians saying 'we will be fine'... blah blah blah..
We won't be in the short term.. Like you said.. the bubble hasn't popped for almost 100years...
Guess what we will get to witness!


edit: Nice profile pic... my fave series of books... all time..

[edit on 23-2-2010 by pynner]

Originally posted by pynner


You know that Canada is in the midst of it's biggest housing bubble ever?
You know that Canada owns more sub-prime mortgages than anywhere else in the world?
You know that Canada at every level is running historic deficits?
You know that NOTHING has changed since the beginning of the 'crisis'?

Always willing to learn.
Can you provide and links to these claims?

Edit, to your edit.

I hear the guy who produces the Lost Show, will be making The Dark Tower
series , after Lost is done.

Commercial real state is been kept out of side and out of mind, numbers had been manipulated to avoid the public from getting into another scare run.

This year commercial real state may plunge the markets once again like the financial did last year.

The analyst are warning investors and so far we have the biggest bank closures in 17 years just in the last two years and growing

Plans to Hide Commercial Real Estate Losses Won’t Avert a Double-Dip Downturn.

Sooner or later, mounting losses on commercial real estate could crash through the market's 2009 optimism and send the economy and stocks into a double-dip downturn.

The major problem is that lawmakers and regulators are setting up investors into believing that commercial real estate (CRE) losses are being effectively addressed. The truth is that escalating losses are being hidden as part of a campaign of optimism in a desperate gamble that a robustly reviving economy will save the day.

moneymorning.com...

Anybody here see this thread? Sound's not good...






www.abovetopsecret.com...

reply to post by Sean48


Oh.. I knew you were gonna ask for links...
There have been soooo many articles on these things..
google news is a good place to start...

I will try and dig some of it up... after hockey..

also wanted to add:

Bank of Canada head = Goldman Sacs trainee.... we are owned by the same people..


re: darktower

Sweet! that's good news... I'm already looking forward to it..

Sorry I didn't get back to you sooner Sean... Hockey = drunk.

Looks like you will have to use google news to find out stuff about the canadian market... I had a whole bunch of links on facebook, but they don't seem to be there any more..

oh.. I did find one:

www.financialpost.com...

from (an excellent site)

thecomingdepression.blogspot.com...

thecomingdepression.blogspot.com...

Looks like we are #2 in the world in subprime loans.. behind australia.

Don't be fooled by the happy talk.. once the olympics are done, there is NOTHING going on in our country... nothing has been fixed...


[edit on 24-2-2010 by pynner]

Originally posted by pynner

Looks like we are #2 in the world in subprime loans.. behind australia.

This claim isnt accurate. What the original article talks about is housing bubbles, not subprime loans.

It might be correct to say that Australia now has the largest housing bubble, but its not correct to call it a "subprime" housing bubble. The criteria for loans has been relaxed (ie banks are allowing peopole to get away with a higher proportion of salary in the payment assumptions), but there are very few genuine subprime loans (ie loans made to people who have no chance of repayment).

Australia's bubble is still credit related, but there are factors such as low levels of construction and high immigration that are helping to fuel the bubble rather than subprime loans. This is why the Aussie bubble is yet to pop, and why its so hard to predict when it will.

Originally posted by zvezdar

Originally posted by pynner

Looks like we are #2 in the world in subprime loans.. behind australia.

This claim isnt accurate. What the original article talks about is housing bubbles, not subprime loans.

It might be correct to say that Australia now has the largest housing bubble, but its not correct to call it a "subprime" housing bubble. The criteria for loans has been relaxed (ie banks are allowing peopole to get away with a higher proportion of salary in the payment assumptions), but there are very few genuine subprime loans (ie loans made to people who have no chance of repayment).

Australia's bubble is still credit related, but there are factors such as low levels of construction and high immigration that are helping to fuel the bubble rather than subprime loans. This is why the Aussie bubble is yet to pop, and why its so hard to predict when it will.

Your right... I did miss quote it... oops!
thanks for catching that..

There are sooo many things going on right now, it can get jumbled up..

So I still stand by the "Canada w/ most sub prime"... but hey, it's all backed by the government.... what could go wrong?

Our canuck government has done an outstanding job of suppressing any news about this kind of thing.. Harper does what Bush could on dream of..
ie: don't like the way things are going for your 'party'... close down government for months on end..