by wildcherry on Monday, July 14th, 2008 | Business

After the Bear Sterns debacle few months ago, some people are very optimistic by saying the worst is behind us. These same people are also the ones that tell investors that banks and financial institutions are at bargain prices. Well i have been reminding anyone that talk to me about those “opportunity” that the worst is yet to come. For those that invest in the financial, they keep on seeing their investment hitting new 52 week low every day.

This weekend big news is about Indy Mac Bank, Fannie Mae, and Freddie Mac. Indy Mac Bank become the biggest bank and mortgage lender so far that has gone bankrupt. Today there are long lines of concern clients at Indy Mac Bank branches. Some of these clients are able to get most of their money out, some are not as lucky.
Here’s my next warning..the Indy Mac bank won’t be the last one that goes bankrupt. Analysts predict there might be up to 150 banks in risk of going bankrupt. So please make sure your bank is financially sound or else it might take days, months or years if they ever close. Although deposits up to $100k is Fdic insured but any redemption won’t be a quick process. Many of Indy Mac clients hoping to get 50 cents on the dollar above the insured limit.

This remind me of what happened in Asia during financial crisis. Indonesia in particular when many banks went bankrupt or went through massive consolidation. The Indonesia government had to bail out many of the banks….sounds familiar?If you have any question regarding your financial institution or any other concern you can post it here.

[ad]

Tags: bank, bankrupt, Indy Mac, money, safe, savings