Tom Petruno
Los Angeles Times
July 12, 2008

In a modern financial system, nothing is more frightening than a run on the bank.

The U.S. now has suffered through a series of them, and they are escalating in size and scope — posing a serious threat to the already reeling economy.

On Friday, rumors swamped financial markets that the federal government would be forced to step in to aid mortgage-finance giants Fannie Mae and Freddie Mac, which together own or guarantee $5 trillion in U.S. home loans.

In Wall Street’s version of a bank run, investors drove shares of Fannie Mae and Freddie Mac to 17-year lows, signaling a gnawing lack of faith in the companies’ ability to survive rising mortgage defaults without government help.

Later in the day, regulators took over IndyMac Bank of Pasadena, saying the $32-billion lender had collapsed under the weight of bad home loans and withdrawals by spooked depositors. It was the second-largest bank failure in U.S. history.

Read article

Truth Rising 9/11 Chronicles Part One: Truth Rising
Get the DVD and make copies or watch the high quality streaming and download version online at Prison Planet.tv. Click here to read more about the film and view sample trailers.

By the way, people who know what's coming are taking advantage of our healthy & delicious storable food!


Related Articles


Comments