Monday, 14 July 2008

Many more US Bank Failures likely after IndyMac

U.S. banks may fail in far greater numbers following the collapse of the big mortgage lender IndyMac Bancorp Inc, straining a financial system seeking stability after years of lending excesses.

More than 300 banks could fail in the next three years, said RBC Capital Markets analyst Gerard Cassidy, who had in February estimated no more than 150.

Almost everything about the US economy is worse than initially reported. Furthermore we know that the official statistics on inflation and unemployment are gross underestimations.

It's very likely that many more than 300 banks in the US will fail in the next three years- unfortunately.

[Posted at the SpookyWeather blog, July 14th, 2008.]

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