Boo! CIT Zombie Lender Unveiled And Walking Among The Other Dead Chapter 11's

CIT Files Bankruptcy; U.S. Unlikely to Recoup Money (Update3)

Nov. 1 (Bloomberg) -- CIT Group Inc., a 101-year-old commercial lender, filed for bankruptcy to cut $10 billion in debt after the credit crunch dried up its funding and a U.S. bailout and debt exchange offer failed.

CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan. The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.

Click here for entire article

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Correction!!! 106 Failures And Hundreds More To Follow PLUS Catherine Austin Fitts "The Slow Burn" Hits The Mark

Bank Failures Top 100 for Year, Most Since 1992

The number of banks that have failed so far this year topped 100 on Friday -- hitting 106 by the end of the day -- the most in nearly two decades.

WASHINGTON - It's a big number that only tells part of the story.

The number of banks that have failed so far this year topped 100 on Friday -- hitting 106 by the end of the day -- the most in nearly two decades. But the trouble in the banking system from bad loans and the recession goes even deeper.

Dozens, perhaps hundreds, of other banks remain open even though they are as weak as many that have been shuttered. Regulators are seizing banks slowly and selectively -- partly to avoid inciting panic and partly because buyers for bad banks are hard to find.

Click here for entire article

***

THE SLOW BURN

People often ask whether I am concerned about inflation, deflation, peak oil, or a global financial meltdown. My answer is as follows.

The future is something to be created, rather than feared. Allocating our time, networks, and resources to deal with a variety of high-risk scenarios frees us to become proactive and to build positive futures instead of negative ones. I like to understand what these scenarios mean in terms of managing risk and to know how we can succeed within all possible futures.

But my business is investment, not prophecy.

The risk scenario I weight most heavily is not listed above. I call it the “Slow Burn.”

The “slow burn” is a political culture and economy managed through principles of economic warfare in which insiders systematically protect themselves and centralize control and ownership of resources by using:

• Central banks
• Currency and lending systems
• Taxation
• Regulatory and enforcement policies
• Controlled media and entertainment
• 
  

Insiders use these means to drain the time, resources, and life of people on the outside. Although insider cartels compete and jockey for power, they are able to settle their squabbles by increasing control and draining everyone and everything else. This is why the bubble economy continues to deplete the real economy. It is likely the reason why Dick Cheney said, “Deficits don’t matter.”

Click here for Catherine's Most Excellent article. On behalf of our subscribers and frequent readers, "Thank You Catherine."

Positioning yourself takes more than a reorganization of your portfolio in the Global Governance World Economy. Subscribe to the monthly newsletter and find out more. Invest today by subscribing - Johnny

Bank Failures Scores 94. End Of Year May See 300+ More. FDIC May Tap Treasury.

U.S. Bank Failures Rise To 94

By John Letzing, MarketWatch

SAN FRANCISCO (MarketWatch) -- Two Irwin Union Bank subsidiaries in Kentucky and Indiana were closed by regulators Friday, bringing the total number of U.S. bank failures this year to 94 and punching an $850 million hole in the federal deposit insurance fund.

Click here for entire article

***

First Bank Failures Announced In Indiana; Kentucky

The first bank failures in Indiana and Kentucky were announced, Friday. The Federal Deposit Insurance Corporation announced it was appointed receiver for Louisville, Kentucky-based Irwin Union Bank, F.S.B., and Columbus, Indiana-based Irwin Union Bank and Trust Co., by the Office of Thrift Supervision and the Indiana Department of Financial Instutions, respectively.

The two failed banks have a total of 27 bank branches and are subsidiaries of the Columbus, Indiana-based Irwin Financial Corporation. Irwin Union Bank and Trust Co. had a total of $2.7 billion in assets and deposits of $2.1 billion, and Irwin Union Bank had total assets of $493 million and deposits of $441 million as of Aug. 31, of this year.

Click here for article

***

More Bank Failures Coming

September 17, 2009 — 6:27pm ET | By Jim Kim

Read more: http://www.fiercefinance.com/story/more-bank-failures-coming/2009-09-17#ixzz0RWO5obbt

So far this year, the Federal Deposit Insurance Corp. has shut down 92 banks. That compares with 25 banks last year. Business Week notes that this might be seen as surprisingly few closures. During the last banking crisis, 381 banks were seized in 1990, 268 in 1991, and 179 in 1992. But the crisis isn't over, and the pace of bank failures is picking up.

Three banks failed over the last few days, including Corus Bank of Illinois. Since July 1, the FDIC has closed down 47 banks. Meredith Whitney predicted not too long ago that 300 banks would fail this year. That's looking more and more prescient every week. Real estate, retail and especially commercial, remains the culprit. Construction loans are also creaking right now.

Click here for entire article

***

FDIC chief considers tapping Treasury for funds

By DANIEL WAGNER (AP) – 10 hours ago

WASHINGTON — The chairman of the Federal Deposit Insurance Corp. says she is "considering all options, including borrowing from Treasury," to replenish the dwindling fund that insures bank deposits.

"I never say never," FDIC Chairman Sheila Bair told an audience at Georgetown University Friday.

Bair's remarks go beyond what she said just three weeks ago when asked about tapping the Treasury after the fund that insures regular deposit accounts up to $250,000 hit its lowest point since 1992, at the height of the savings-and-loan crisis. "Not at this point in time," she said on Aug. 27.

Click here for entire article

Stay uptempo to the Global Economy and Global Governance issues like these by subscribing to the monthly newsletter today! - Johnny

Boo!: Zombie Banks Will Suck The Life Out Of You Soros Prophesies

U.S. Banking System is "Basically Insolvent".

Soros says U.S. faces "lasting slowdown"

Mon Apr 6, 2009 4:55pm EDT

By Jennifer Ablan and Dan Burns

NEW YORK (Reuters) - The U.S. economy is in for a "lasting slowdown" and could face a Japan-style period of relatively low growth coupled with high inflation, billionaire investor George Soros said on Monday.

Soros, speaking to Reuters Financial Television, also warned that rescuing U.S. banks could turn them into "zombies" that draw the lifeblood of the economy, prolonging the economic slowdown.

"I don't expect the U.S. economy to recover in the third or fourth quarter so I think we are in for a pretty lasting slowdown," Soros said, adding that in 2010 there might be "something" in terms of U.S. growth.

For entire Reuters article click here.

ONLY THE SAVIOR OF THE WORLD CAN SAVE US:

(INSERT QUEEN SOUNDTRACK MUSIC FROM FLASH GORDON)

O-BAMA

HE'LL SAVE EVERYONE OF US

"There's money to be made when there's blood in the streets"

Merrill Lynch Says Rich Turning To Gold Bars For Safety

Rich investors are spurning gold exchange traded funds in favour of krugerrands.

Merrill Lynch has revealed that some of its richest clients are so alarmed by the state of the financial system and signs of political instability around the world that they are now insisting on the purchase of gold bars, shunning derivatives or "paper" proxies.


By Ambrose Evans-Pritchard
Last Updated: 10:32AM GMT 09 Jan 2009


Gary Dugan, the chief investment officer for the US bank, said there has been a remarkable change in sentiment. "People are genuinely worried about what the world is going to look like in 2009. It is amazing how many clients want physical gold, not ETFs," he said, referring to exchange trade funds listed in London, New York, and other bourses.

"They are so worried they want a portable asset in their house. I never thought I would be getting calls from clients saying they want a box of krugerrands," he said.

Click for entire article

A Devastating Parody Of Central Banking - Thanks Chris Powell at GATA!

Dear Friend of GATA and Gold:


A year ago "Newstopia," the weekly satirical comedy program of the Special Broadcasting Service in Australia, the public broadcasting network there, aired a 3 1/2-minute mock interview with an official of the Reserve Bank of Australia, the Australian central bank. It features the writer, actor, and comedian Shaun Micallef as the television newsman and Nicholas Bell as the RBA official, and it is a hysterical and devastating parody of the aloof smugness and imagined omnipotence of central banking.


It will be horrible if the work of these guys isn't brought to the Northern Hemisphere, and we have to chide our Australian friends for not bringing it to GATA's attention. Because of their subversiveness the "Newstopia" people might not be allowed into the United States, at least for another couple of weeks, but since Australia is a British Commonwealth nation, they'd probably have to be admitted to Britain, and what a delight if they were put in charge of the Financial Times.

Make sure to watch it to the very end:)

KISS THE DOLLAR And JP Morgan GOOD-BYE!

December 16 - Gold $841.70 up $5.20 $16.60 - Silver $10.67 up 5 cents

JP Morgan In Big Trouble/Fed Printing In Effort To Keep Them Afloat/... Gold/Silver Fly

"If you have an important point to make, don't try to be subtle or clever. Use a pile driver. Hit the point once. Then come back and hit it again. Then hit it a third time - a tremendous whack." … Winston Churchill, Sir (1874-1965)

GO GATA!

From My Favorite Favorite Southern Gent - Franklin Sanders

The Money Changer - Tuesday, 16 December a.d. 2008
Whoa! You men paying attention? Stand up where
you are, twist your body to the right, place your right
hand in your back pocket, withdraw your wallet, pull
out a green federal reserve note, lift it to your lips,
and KISS THE DOLLAR GOOD-BYE!
You women will have to fish in your purses ten
minutes to find your wallets, then dig out a
out a buck and kiss it good-bye.
Not only have the Fed & the Treasury executed a
coup d'etat & taken over the yankee government entire, the
Fed reduced the Fed Funds rate to 0.5%, lowest level
in history. But in case that doesn't work, they also have
yet another new strategy: "quantitative easing." That
is "Fedspeak" for printing money. Let the presses begin!
Let there be money, and let it flood the hills & valleys,
yea, let it flow into the shallowest pockets in the land,
& let the desert economy bloom!
Folks, if any of y'all yet cling to the "deflationary"
outcome, you had best let it go today. Although the
economic outcome will be depression, the monetary
outcome will be massive inflation, & quite likely,
hyperinflation. The dollar will evaporate, while silver &
gold will skyrocket, unless the laws of cause & effect
have been repealed by a compliant congress.
Gold closed at US$841.70, up 6.30, until the Fed announced
its "plans", sending gold up to US$861, another US$19.30.
Silver, which had closed up 8.5 cents to 1067.40 cents,
jumped 70 more cents to 1137 cents. The prices show for
gold & silver items below derive from those higher
aftermarket prices.
All bets are off, friends, for any sort of peaceful landing.
Every man for himself! Today your government & the
private corporation that controls the economy & the
money, the Federal Reserve, threw you, and the US dollar,
out of the boat, with an anvil tied to your feet. Every
one of us had better learn to swim.

***

FROM GATA

JUST IN … OK, here’s the latest on the coming JP Morgan blow up.

The information I sent your way yesterday was re-confirmed today. The lack of trust in the financial world over counterparty risk is "accelerating." This is forcing "remaining contracts" of all kinds, especially in the Over The Counter markets, to be "settled."

What is stressed to me is that it is a "currency" problem … so I did my best to nail that down. It has to do with the dollar, US interest rates, AND gold and silver, which represent a SUBSTANTIAL part of the JP Morgan derivatives book … and it is TRILLIONS and TRILLIONS … the magnitude of the problem is that large.

JP Morgan, the Fed’s bank supposedly can’t handle it, so the US Government is stepping in … and the only way the Fed can handle the GROWING problem, is to PRINT money. BUT, they can’t PRINT the money fast enough.

And yes ... this a major reason why the dollar is suddenly falling apart. If I, WE, know … much of the BIG MONEY has to know and they are dumping dollars as fast as they can, ergo the dollar is TANKING, and will continue to tank.

The Madoff mess, and $50 billion catastrophic loss, could not come at a worse time for the US Government and JP Morgan. Our government knows they CANNOT let Morgan fail and they are going all out to prevent that from happening. However, the Madoff scandal, and loss of capital, has those fearful of counterparty risk problems accelerating their exit from dealings with Morgan and other US institutions, in which they have dollar based, counterparty contracts. It is so bad that word to me is that the US cannot "waste time" on the relatively insignificant Madoff "disintermediation" nightmare, the JP Morgan problem is so MONSTROUS … because disintermediation is spreading like a horrible, malignant cancer and the numbers are mounting daily.

So, what are we left with? Bernanke’s helicopter drill is NOW in effect. The problem is Bernanke needs B-47’s or some gorilla plane like that. We have talked about this sort of scenario in MIDAS for some time. Well, we are here for sure and it is in play (Bill H and others have been all over this).

What will be critical for JP Morgan to stay afloat is for the Fed to be able to print money fast enough to meet the demand of those closing out contracts with Morgan.

The bottom line: HYPERINFLATION is upon us, or the eve of hyperinflation is.

As far as I know, no one else out there is delving into the JP Morgan mess. The insiders are trying to keep this horror show as quiet as possible.

One more thing, I asked my source about "settling" in regards to gold and silver contracts. Let the shorts cover I said. To cover anywhere near here, after THEY forced the prices down and caused billions of dollars of spec losses, would be more than just a travesty of justice, It would open the potential for hundreds of billions of lawsuits for what would be clear cut fraud by the concentrated shorts who took the market down the past many months. It is one thing to have gold go $1500 bid overnight (or in a few weeks) and silver go $30 bid, and then declare a force majeure (unable to deliver for unforeseen reasons) after letting the free markets play out until there is a legitimate reason WHY something HAS be done. It is another to force settlement of gold and silver contracts in what Dennis Gartman calls a BEAR MARKET!

Now, I am not saying that this gold/silver settle scenario is in the cards at this point in time, so don’t go running to the CFTC, and others, and raise a ruckus, it is just something to be aware of. In the meantime, it seems to me that owning as much gold, silver and the shares is the way to go. That’s where my head is.

GATA BE IN IT TO WIN IT! We Love You GATA & Franklin! Thanks A Bunch!

What A Hypocrite! A Brood Of Vipers Jesus Called Them! Sitting In His Lavished Palace Of Treasures! Vatican Gold Condemns Banks! Ha!

Pope Benedict XVI, seen, during the works of a meeting of 253 bishops at the Vatican. Photograph: Gregorio Borgia/AP

MIDNIGHT IN THE GARDEN OF GOOD AND EVIL PART 3

VATICAN
GOLD CROSS
J
U
D
G
E
S
FRACTIONAL RESERVE BANKING!

FELLOW CITY WOLF ROWAN WILLIAMS ENCOURAGES MARXIST IDEOLOGY IN REGARDS TO MONEY!

Pope Benedict has passed his own judgment on the economic crisis, suggesting that the global financial system is built "on sand".

"Whoever builds his life on this reality, on material things, on success ... builds (his house) on sand. Only the word of God is the foundation of all reality," he said yesterday, according to Reuters.

The pontiff added: ''We are now seeing, in the collapse of major banks, that money vanishes, it is nothing. All these things that appear to be real are in fact secondary. Only God's words are a solid reality'.'

For entire article click here

The Shadow Market Finally Revealed on Primetime

Arcane Maybe, But Definitely The Lovely Centerpiece Of The Robber Barons Banquet Table.

Its been a long, long, time coming for us that stood as a lone voice in the wilderness as to what was really taking place since 9-11. Many of our Christian family scoffed at such conspiratorial ideas and even mocked us to the point where we were no longer taking serious. But not anymore. No, we're being taken serious now. Those that were forewarned are listening to us now. - Johnny

A Look At Wall Street's Shadow Market

60 Minutes: How Some Arcane Wall Street Financial Instruments Magnified Economic Crisis

Say "No" To The Big "Do Over" : Continue To Call Your Reps

U.S. NATIONAL DEBT CLOCK The Outstanding Public Debt as of 02 Oct 2008 at 01:46:05 PM GMT is:



"...massive lending institutions and banks have been caught with cooked books and gross mismanagement, the American people must bail them out to "recapitalize," reward incompetence and perhaps even criminal activity"

Devvy The Dynamite Red Head Nails It Again!

THE FAKE $700 BILLION BAILOUT RESCUE PLAN

WAMU Seized By The Feds!

We Are In The Midnight Hour In The Garden Of Good And Evil

There's only a few things that interest me...work...and those
trappings of aristocracy that I find worthwhile.
The very things they're forced to sell when the money runs out.
And it always runs out.
And then all they're left with...is their lovely manners. -
Kevin Spacey as Jim Williams from the movie
"Midnight In The Garden Of Good and Evil"

U.S. Government Seizes Washington Mutual

Friday, September 26, 2008

The U.S. government on Thursday made the largest bank seizure in American history, taking over Washington Mutual, the severely troubled savings and loan, and selling pieces of it to JPMorgan Chase in an emergency deal intended to avoid sticking the taxpayer with a bill for another bank, according to people briefed on the plan.

For weeks, the Federal Reserve and the Treasury Department had been nervous about the fate of WaMu, among the worst-hit by the housing crisis, and had pressed hard for the bank to sell itself. As panic gripped financial markets last week after the collapse of the investment bank Lehman Brothers, U.S. regulators stepped up their efforts, working behind the scenes, and at times going behind WaMu's back to work privately with potential bidders.

The Global Economic Landscape Will Never Look The Same Again

From the Telegraph.co.uk
Hard times: central banks have acted to avoid a repeat of 1929

Financial Crisis: Default By The US Government Is No Longer Unthinkable

By Liam Halligan

Last Updated: 11:48am BST 21/09/2008

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So, here we are - the start of a new world order. After the tumultuous events of the last fortnight, the global economic landscape will never look the same again.