more bank closings on the way….


by problembear

is the worst over in the bush-crash yet?

banks are still going under with lots more to come as the dominoes continue to fall several tiers beneath the too-big-to-fail giants propped up by gov’t bail-outs.

but, i have no doubt that even though the FDIC is at its lowest level of solvency since the great depression, it is on top of things???

(place cynical eye roll here)


meanwhile, am noticing a lot of commercial space vacancies sprouting up while making my daily rounds here in missoula.  most businesses and the jobs they provide disappear without a whimper until you see the for rent and for lease signs.  it looks like it is getting worse around here to me.

what do you think? is the worst over?

  1. Lizard

    the quick answer is no.

    and to call it the “bush-crash” is inaccurate. there’s a whole lot more to this economic game than bush’s ineptitude.

    obama was onboard from day one to continue the bailout bush started, and until that uncomfortable reality sinks into the minds of the party faithful, they will continue to simply pin this colossal banking clusterfuck on bush.

    on the local front, is that really another office building being built on Broadway and Ryman?

    • Pogo Possum

      Lizard – Yes. Another building is going up. It will be the new office space for the law firm Garlington Lohn & Robinson. They outgrew their old building.

      “Work will start this week on the newest and biggest addition to downtown Missoula: a six-story glass-and-brick office building for the longtime Missoula law firm Garlington, Lohn & Robinson.

      The new $14 million structure will go up at the corner of Ryman and West Broadway, in the space previously occupied by Scooterville, across from the County Courthouse.

      Missoula’s newest 52,927-square-foot high-rise will be remarkable in several ways: Not only will it bring a more urban look to downtown, but it also will be an example of leading-edge green technology and the state’s first project financed with federal New Markets Tax Credits

    • goof houlihan

      The quick answer is “yes” there are more bank failures to come. We are up to 84 this year including the first second and third largest failures of the year happening this past month or so.

      For the most part, these failures are a “trailing indicator”, however, there is more debt to default than just the real estate loans.

      Ironically, as the “too big to fail” banks pay bonuses, the regional banks who have to soak up the higher costs of the bailouts, continue to struggle. The number of at risk banks is higher as well.

      Is the worst over? Not for my area; we are is still riding the curve down and will be even if national indicators bottom out and begin to rise.

  2. problembear

    it started on his watch lizard. you can call it poor luck if you want. but i happen to think that failed republican policies of unfettered free market gone wild are at the root.

    yes, the idiot democrats went along with it out of craven cowardice and/or complicity, but the roots of the current depression began with reagan. like warren buffet told us when the magnitude of this failure was becoming apparent- nobody wants to be the last one to leave the party.

    bush had an obligation to stem the greed and gambling fever on wall street and in every real estate office in the country and he failed to do anything.

    it is the bush-crash because bush was the last one at the party and he failed to act until it was too late. it is and will always be my position that bail-outs only breed more incompetence. it rewards bad behavior and what else can we expect from wall street in the future when we reward it besides more bad behavior?

    that the ensueing bad behavior is allowed to continue by a democratically controlled presidency and congress is just more evidence that washington is controlled by private interests like corporations who supply us with war machines, health insurers and big banks, not by the people anymore. that is simply a political fact.

    • Lizard

      calling it the bush-crash is too limiting. call it the wall street crash overseen by the crack-smoking fiscal ambulance drivers at the federal reserve.

      it started on his watch lizard. you can call it poor luck if you want. but i happen to think that failed republican policies of unfettered free market gone wild are at the root.

      by “it” i’m assuming you mean the bailouts, and yes, hank started the ball rolling as bush finished off his failed reign.

      but i would disagree that it’s been solely “republican” policies of unfettered free market gone wild that is at the root. you have to include the neo-liberal democrat corporate sell-out if you want to understand the total failure of our political system currently destroying this country’s chance at providing health care for ALL its citizens.

      and i hate to say this right now as the media is busy enshrining his memory, but Ted Kennedy was a part of that neo-liberal sell-out. Alexander Cockburn @ counterpunch continues to prove he is one of the few journalists capable of bringing an equal opportunity critique to both sides of the isle.

      Though the obituarists have glowingly evoked Kennedy’s 46-year stint in the US Senate and, as ‘the last liberal’, his mastery of the legislative process, they miss the all-important fact that it was out of Kennedy’s Senate office that came two momentous slabs of legislation that signalled the onset of the neo-liberal era: deregulation of trucking and aviation. They were a disaster for organized labor and the working conditions and pay of people in those industries.

      read the whole article, and then tell me it’s all just the fault of the republicans starting with reagan.

  3. Pogo Possum

    I am not certain where you got the

    “. . . FDIC is at its lowest level of solvency since the great depression”

    information, PBear. My understanding is that the FDIC fund is about where is was in 1993 during the S&L crisis.

    Here is an interesting article from Businessweek that does a decent job of interpreting some of the numbers the FDIC just released.

    “. . . .The banking industry is hurting, make no mistake. But before you stash your savings in your mattress, take a closer look at the numbers out today from the Federal Deposit Insurance Corp. They’re not rosy, but they might not be quite as scary as they seem, even if they signal more pain for the banks themselves.

    Let’s start with that $10.4 billion, a low-water mark not seen in the FDIC’s deposit insurance fund since about 1993.

    You get it by taking the FDIC’s assets — $21.6 billion in cash or equivalents and another $43.2 billion in other assets, largely accumulated by taking over failed banks — and subtracting $22.4 billion in liabilities and another $32 billion for a “contingent loss reserve for expected failures.” That leaves $10.4 billion left over.

    But here’s the good news: That contingent loss reserve is what the FDIC expects to shell out (over time) for bank failures going forward, taking into account worsening conditions. In other words, even after projecting the pain from the financial crisis, the FDIC still expects the deposit-insurance fund to be $10.4 billion in the black.”

    There is more interesting info to find in the article.

  4. problembear

    great contribution pogo. will read up.

  5. Lizard

    i think obama’s obsession with “looking forward” reflects a broader national refusal to admit mistakes made in the past, who made those mistakes, and how those mistakes continue to shape our present and our future.

    throw out the jargon, cagey math, and high-level, bipartisan political protection, and what you have in the financial sector are a bunch nicely dressed gangsters who have grown so accustom to theft as a way of life, they literally cannot fathom that, without their gutless apologists in congress and the white house, they would be prosecuted and imprisoned for fraud, extortion, and probably in some cases, treason.

  6. petetalbot

    The link I went to listed every Montana bank. I just didn’t feel like clicking on every bank in every city to see what its score was (for example, two banks I deal with in Missoula are: First Security, 13.3%; Mountain West, 28.9%. I’ve gotta wonder if my loans for our building project are lumped into the “troubled assets” category.

  7. problembear

    the loans would have to be more than 30 days past due to go into the troubled assets pile pete….

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