but I'm sure that's nothing to worry about. We've only had 69 failures so far this year and it's not like the rate of failure is increasing or anything.

Oh, wait.

Well, at least we have an administration that understands the problems and is looking to overhaul the system.

Oh, wait.

(chart link - Calculated Risk)

He says his name is Mr. Margin.

Lambert asked why they no share the monies. The NY Times article linked above is instructive.

Banks are holding on to the cash to prop up the stock price for investors (sure, sure) and especially to keep the stock prices propped so the top execs (whose lifestyles are dependent on borrowing money against the stocks they own in the companies they run) aren't busted out.

Please read Paul Jorian's blogpost regarding the implosion of the credit markets, the reasons, the influence of "The Chicago School" of economists whose assumptions continue to help us not understand how economies work, and "What it All Means".

Don't feel bad to reread each sentence, mouth-moving to form the words, just as I must do. Just read it. (plus it's fucking footnoted. My god, who footnotes a blog!!!????)

Here are some teasers:

The opener:

because voter opinion is actually having an effect.

Members of congress are reporting a deluge of calls, emails and faxes condemning the Trillion Dollar Giveaway (I refuse to call it a “bailout” because it isn’t; it’s a giveaway). The result was defeat in the House on Monday, and the direct effect of those voter contacts can be traced to a specific cohort of House members.

Nate Silver at fivethirtyeight.com helpfully pulled together the names of representatives who are in close races, people who are most acutely tuned to the will of the people. Relying on “lean” or “tossup” risk status assessments from Swing State Project, he cites a total of 38 vulnerable reps; 20 Republicans and 18 Democrats. Of those 38, 17 Republicans and 13 Democrats voted “Nay” while only 3 Republicans and 5 Democrats voted “Aye.” This 30 to 8 rejection compares to a near-even split, 197 Aye and 198 Nay, among members whose seats are considered “safe.”

Feds have seized, closed, and frozen all of its assets. Depositors will have access to ATMs ONLY.
via Bloomberg

July 11 (Bloomberg) -- IndyMac Bancorp Inc. became the second-biggest federally insured financial company to fail today after a run by depositors left the California mortgage lender short on cash.

The Federal Deposit Insurance Corp. will run a successor institution, IndyMac Federal Bank, starting next week, the Office of Thrift Supervision said in an e-mail today. Customers will have access to funds this weekend via automated teller machines.