Saturday, July 12, 2008

Weekend Wrap Up

Hello everybody,
I’ve been extremely busy with work and school this week as you can tell by my lack of posts. Obviously I missed a lot of stuff. I picked up the
Wall Street Journal today and the headline reads: Crisis Deepens as Big Bank Fails: IndyMac seized in largest bust in two decades.

IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators, in the third-largest bank failure in U.S. history.
IndyMac is the biggest mortgage lender to go under since a fall in housing prices and surge in defaults began rippling through the economy last year -- and it likely won't be the last.
Banking regulators are bracing for a slew of failures over the next year as analysts say housing prices have yet to bottom out.
The collapse is expected to cost the Federal Deposit Insurance Corp. between $4 billion and $8 billion, potentially wiping out more than 10% of the FDIC's $53 billion deposit-insurance fund.

I can’t say I’m surprised; I shorted the stock for a while last year. Mish already shared his thoughts on the failure.

I also missed the implosion of Freddy and Fanny. Many of you emailed me about this one but as you know I am not an industry insider so I don’t know how this will affect the Portland area. Maybe you have some ideas.

I’m taking a long weekend but will probably post again on Monday.

Get out and enjoy the sun!