Indy Mac Bank failure
 

With all this doom and gloom talk of our economy are we now beginning a process of making this decline self fulfilling?

An important angle in the IndyMac failure that may get lost in ominous headlines tonight and tomorrow: federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank's failure. In simple language, federal regulators blamed Schumer for a run on the bank.

Here's from the press release issued by IndyMac's regulator, the Office of Thrift Supervision: "The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors’ demands in the normal course of business and is therefore in an unsafe and unsound condition. The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York. The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts.

"This institution failed today due to a liquidity crisis," OTS Director John Reich said. "Although this institution was already in distress, I am troubled by any interference in the regulatory process."

Schumer's response? In an e-mail quoted by Bloomberg News, he says: "If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today ... Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs.''

http://latimesblogs.latimes.com/lala...ite-schum.html

How do I get on the list to do whatever stupid shit I want and pass the damage on to the taxpayers?

It is a 2 phase plan that begins with collecting signatures. then you tell everyone who'll listen how much you care for the common man who struggles every day. then you blame big business, lenders, automakers, and oil companies for the ills of the world today while announcing a completely unrealistic free medical plan for everyone.

once you're elected you implement phase 2 of your plan. That is where you make random, uneducated, and irresponsible statements about any subject that pops up when you have a microphone in front of you. The following week when someone tries to hold you simply say "not my fault". Then you know you have arrived.

And don't forget to promise everyone everything they want but don't tell anyone how you are going to pay for it.

Pay for it? You mean, transfer the balance to another credit card or something.

I don't understand. Pay for it?! What country are we living in, anyway?

The Twilight Zone.

Part B of this question, how big does a company have to be before it can be labeled critical for the economy and do whatever stupid shit it wants and pass the damage on to the taxpayers?

My phys ed teacher friend and I, had a long talk about the death of responsibility after our mtn bike ride this morning. A person could get depressed about our society nurturing weakness and subsidizing idiocy both corporate and individual. For every Lil' Lookout or Lil' Pete out there, there are dozens of kids whose parents call the school if they turn an ankle or break a sweat in gym class. Bailouts for everyone!

This has to be one of my biggest societal gripes as well. The sense of entitlement and failure to accept responsiblitiy for one's own life decisions. Nothing is any one's individual fault, the blame always has to lie with someone or something else. I am afraid this started quite a while ago and we have all seen it coming but have failed to address it.

I hear you Griff. That's why LL is in a school with personal accountability as one of the central values. There aren't excuses for bad choices. Hopefully there were conscious reasons but the consequences are the same regardless of the motivation. I feel that is important because we now live in a society that has taken the ideal of molding the world to yourself way too far. I want Lil Lookout to learn what the rules are and then win by using the rules to his advantage. I feel the same for adults. The rules may be stupid and irritating, but play within the rules, while working for change - Don't just ditch the rules and expect society to say "well, he probably had a good reason so he shouldn't be punished".

Oh, I don't know. Some rules are so stupid now-adays, they beg to be broken. However, if a person decides to break one, they should be accountable for their action.