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Red flags for an arrived crisis - Part 14


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I've noticed that a lot of people are paying with cash lately, instead of credit or debit cards. It's been slowing down the check out lines at a couple of the stores I go to.

I wouldn't call that a red flag, unless you think that sheeple waking up is a red flag. :)

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Sheeple waking up? ......wow! Big Red flag, huh? :laughkick:

 

 

Well seriously, ALL of us waking up is the Red Flag that began this thread so long ago now. Two things come to mind when I hear of folks using nickles/quarters to pay for milk [bTDT in one era of our lives!!!!] or even just paying cash instead of credit cards. 1) they are waking up and trying to be more responsible/economizing and not paying the credit card fees.....or 2) they have no more credit to use.

 

Lots of folks are maxed out. And the CC companies are dropping folks too. Or reducing their credit limit. There has been at least a small shift away from trying to shove as many CC's into the hands of anyone who will use them [wisely or not]. Are older teens still getting all those offers for CC's?

 

 

MtRider [remembering the days (in the 80's) when the "change jar" got emptied for milk..... :o ]

Edited by Mt_Rider
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I was just talking to a friend and she said her nephew was supposed to close on a house when this company suddenly closed and froze everything.

 

 

 

Orlando Business Journal - August 5, 2009

/orlando/stories/2009/08/03/daily32.html

 

Business News - Local News

Wednesday, August 5, 2009, 3:49pm EDT | Modified: Thursday, August 6, 2009, 11:12am

Mortgage broker Taylor Bean halts loans

Orlando Business Journal - by Christopher Boyd Staff Writer

 

Taylor, Bean & Whitaker Mortgage Corp., the Ocala mortgage broker that abandoned an effort to rescue Colonial Bancgroup Inc. last week, ceased processing mortgages Wednesday, a day after the Federal Housing Administration and Ginnie Mae suspended doing business with the company.

 

The company said it would cease processing and closing mortgage loans after it unsuccessfully sought reversal of the federal agencies’ decision, according to a statement released Wednesday.

 

According to the Wall Street Journal, Taylor Bean was the nation’s third largest underwriter of FHA loans in the country.

 

Taylor Bean, leading a consortium of mortgage brokers that included two Orlando companies, offered to invest $300 million in Colonial Bank in exchange for a 75 percent equity stake. Colonial needed the money to qualify for $530 million in federal bailout funds. But the bank announced last week that the deal fell through.

 

Federal law enforcement agents raided a Colonial office in downtown Orlando and Taylor Bean’s headquarters Monday carting off records.

 

Montgomery, Ala.-based Colonial Bancgroup is the parent of Colonial Bank, Central Florida’s fourth largest lender. It lost $606 million during the quarter ended June 30, largely the result of loan failures. It had $1.7 billion in non-performing assets.

 

 

All contents of this site © American City Business Journals Inc. All rights reserved.

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Went to the grocery to store just now and had to pay for milk in change. As I appologized for paying in change that cashier said" Its ok, everyone has been doing all day" The biggest RED FLAG was we live in a fairly upper class area of town.
Reminds me of what happened to my children and I...

 

I took my children to Toys R Us a month ago with their piggy bank money (almost all of it was change) and the cashier didn't want to accept it. I naturally was :o then :angry: What? coins don't spend anymore?

 

"These are CHILDREN, 8 and 6, its their PIGGY BANK money..."

 

I was polite but let me tell you, I was turning red :blush: , but in the back of my mind I was thinking bible, when the love for others shall grow cold... are we in those times already? Appears so. :shakinghead:

 

He ended up calling a manager, and I got the "this is the only time we'll accept it" line.

 

:baseballbat:

Edited by LaBellaVita
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Consumer Reports is advocating prepping for Swine Flu:

 

http://news.prnewswire.com/DisplayReleaseC...1053&EDATE=

 

Consumer Reports shows how to avoid drugstore traps, and which remedies are most effective

 

YONKERS, N.Y., Aug. 3 /PRNewswire-USNewswire/ -- As the U.S. prepares for a possible second wave of H1N1 or swine flu, as well as for the annual scourge of seasonal flu and colds, a new report from Consumer Reports helps households prepare for, prevent, and treat cold and flu symptoms safely and effectively, including recommendations for what to pack in an emergency kit for a flu outbreak. The report is available in the September 2009 issue of Consumer Reports and online at www.ConsumerReportsHealth.org.

 

How to Prepare a Swine Flu Emergency Kit

 

In case the second wave of swine flu is severe enough to warrant home confinement, consumers should pack an emergency kit in advance. You will need:

 

* A two-week supply of food and water.

* Fever reducers, such as acetaminophen, ibuprofen, or naproxen.

* Cough and cold medications containing chlorpheniramine, diphenhydramine, oxymetazoline, and pseudoephedrine and lozenges with dyclonine, glycerin, or honey can help ease symptoms.

* Electrolyte drinks, such as Gatorade or Powerade, to keep you hydrated.

* Hand sanitizer with at least 60 percent alcohol, such as Purell, to kill viruses when

 

soap and water aren't available.

 

* Surgical masks with an FDA rating of at least N-95 to help prevent spreading the flu. Masks need to be replaced often and disposed of after use.

 

For all emergencies, Consumer Reports recommends packing at least three days' worth of nonperishable food; at least one gallon of water per person, per day; a first-aid kit that includes any prescription or over-the-counter medications your family might need; as well as antihistamines for allergic reactions, pain relievers, stomach and antidiarrhea remedies, and antacids.

 

The government is currently preparing a vaccine against the swine flu that will likely be recommended for school-age children and other high-risk individuals, such as pregnant women, those with chronic illness, and those who live or work with infants, preschoolers, or older adults. In the meantime, Consumer Reports recommends that everyone -- but especially high-risk people -- get vaccinated against regular, seasonal flu before December when that infection usually arrives.

 

"This could be an especially big year for flu, so people need to take every precaution and double their efforts to safeguard their families," says Joel Keehn, senior editor, Consumer Reports. Even when the vaccine doesn't prevent seasonal flu, it often lessens its symptoms. In terms of treatments, certain antiviral drugs can not only ease symptoms of seasonal flu but also shorten its duration and possibly prevent complications as well. Some of those drugs probably help against swine flu too. Antivirals work best if taken early on in the illness, so it's best to take them at the first sign of symptoms.

 

Brands to Buy and Brands to Skip

 

Also in this issue, in a side by side comparison, Consumer Reports identifies the Consumer Reports Best Buy Drug choices to treat eight common conditions, including Attention Deficit/ Hyperactivity Disorder (ADHD), heartburn, and insomnia that can save consumers hundreds or even thousands of dollars a year. For example, consumers who need to lower their LDL ("bad") cholesterol by less than 30 percent can save nearly $1,000 a year by taking Lovastatin, a generic statin, instead of taking Lipitor, a more expensive brand-name drug. Launched in December 2004, Consumer Reports Best Buy Drugs is a public health initiative that rates more than 200 prescription drugs using comparative effectiveness research. Best Buy Drugs reports are available for free at www.ConsumerReportsHealth.org/BestBuyDrugs. By opting for Best Buy Drug choices, consumers can realize significant monthly savings while receiving the most effective and safest treatments for their condition.

 

As the new school year approaches and weed pollen allergen levels peak, Consumer Reports also lists other useful information for treating colds and allergies without medication. For colds, the best remedies are the simplest and can often be found in your kitchen, not a drugstore. For example, you can soothe a sore throat with a saltwater gargle, or try honey or nonmedicated lozenges for a cough. Controlling allergies starts by limiting exposure to the triggers, keeping windows shut when outdoor triggers are high, and using an air conditioner or a dehumidifier to reduce humidity. To treat allergy symptoms with over-the-counter drugs, Consumer Reports recommends using generic versions of Claritin and Zyrtec -- loratadine or cetirizine.

 

Avoiding Hidden Drugstore Traps

 

No matter your ailment, consumers need to watch out for the following traps at the drugstore when shopping for remedies:

 

* Brand-name extensions. Drug manufacturers often use brand names to launch related but different products. There are 34 Vicks products and 14 Sudafed products, and countless store brands and generic versions. With so many products to choose from, people might take medications that are inappropriate or even risky.

o Recommendation: Choose remedies by active ingredients, not the brand.

* "Shotgun" remedies. Many products are loaded with multiple ingredients to blast several symptoms at once. That's a misfire, since some added ingredients can increase risks, and any ingredient that treats a symptom you don't have is unnecessary. Such products can increase the risk of overdoses if you take multiple medications.

o Recommendation: Opt for medicines with just one active ingredient.

* Prescription drugs that became over the counter (OTC). Direct access to medication can introduce new risks if people turn to them when simpler remedies would suffice or if they treat problems without a doctor's diagnosis.

o Recommendation: Before trying a drug that has become available over the counter, talk with your doctor to make sure that it's right for you, that you need it, and that the condition doesn't require medical supervision.

 

SEPTEMBER 2009

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Again, you may not like the source, however the information in this article IS IMPORTANT.

 

IMO this is something that you will be seeing at ANY protest/rally/etc. in the VERY near future.

 

(Is it time to start practicing the "Sieg Heil" salutes ??? :behindsofa: )

 

http://www.blacklistednews.com/news-5124-0-5-5--.html

 

Obama Connected Group Calls for Brownshirt Tactics Against Healthcare Opponents

 

Published on 08-07-2009

 

By Kurt Nimmo

 

An organization supported by Obama, Biden and 190 members of Congress, Health Care for America Now, instructs Democrats to confiscate signs and leaflets brought to Obamacare events by “rightwing extremists,” that is to say Americans opposed to totalitarian health care.

 

“The best way to do this is to make a blanket rule that no one can bring signs or leaflets and to advertise this fact as you do turn out in the weeks preceding the event. You can distribute your own signs in the event and offer them one as they enter if you choose to allow them to enter,” the HCAN website instructs.

 

HCAN is supported by the usual suspects, including ACORN, unions, MoveOn.org (a George Soros outfit), the National Council of La Raza, the eugenics front Planned Parenthood Federation of America, and the Clintonite John Podesta’s war-mongering Center for American Progress.

 

HCAN will organize brownshirt thugs — called “marshals” — to patrol crowds with local police assistance to make sure no opposition can be voiced. “Make sure that you assign marshals to take care of moving the crowd, keeping people organized and orderly, and acting as security should any need arise to ask noisy or disruptive protesters to leave. If you have cause to think that you will need more back-up, notify the police ahead of time.”

 

The corporate media should also be tightly controlled, according to the organization. “It’s important that you take away right-wingers opportunities to talk with reporters by making sure that your staff or leaders are in constant contact with the media who attend. You should set up a special table or area for the press to sit during the event and that area should be close t the stage and away from any areas of the venue where protesters may gather. Also make sure you have materials ready for the reporters so that they know the purpose and message of the event,” the website explains.

 

HCAN claims Democrats and Obamanoids “are getting beaten up by right wing zealots in these meetings.” In fact, as Infowars documented earlier today, the exact opposite is the case — union thugs attacked a patriot outside of St. Louis yesterday and put him in the hospital. Police arrested anti-Obamacare demonstrators and even media covering the demonstrations.

 

HCAN also suggests Democrats get with members of Congress to shut down free speech and control the opposition. “One advantage to organizing your own Town Hall or public event with Members of Congress is that you will have much more control over the event and limit the other side’s opportunities for disruption.”

 

Earlier this week, Infowars reported on Obama’s plan to organize informer-citizens to turn in their neighbors and others who oppose Obamacare. “Since we can’t keep track of all of [the "rightwing" opponents] here at the White House, we’re asking for your help. If you get an email or see something on the web about health insurance reform that seems fishy, send it to flag@whitehouse.gov,” writes Macon Phillips, the White House Director of New Media, in a post on the White House website.

 

News report on Obama’s enemies list.

 

During Bush’s reign the same tactics were evident, much to the outrage of liberals and Democrats. “As Bush has traveled the United States during this political campaign, the Secret Service and local police have often handled public protest by quickly arresting or removing demonstrators, free-speech advocates say,” the Washington Post reported on October 28, 2004. “In addition, access to Bush’s events has been unusually tightly controlled and people who do not support Bush’s reelection have been removed.” Now that the shoe is on the other foot, Democrats have become strident zealots in an effort to deny the First Amendment to their opponents.

 

 

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The Taylor Bean shut down came as a real surprise to my nephew and his girlfriend, both out of work now. There were 1,238 employees, except for a skeleton crew, all employees recieved an e-mail Wed. at 1 PM, all positions were terminated at that time. Leave now, nephew said it wa surreal...guards at every building and entrance, reporters all over the place. Have heard that BOA will be taking the Taylor Bean accounts.

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Reading this article this morning raised a Red Flag....not unexpected but.... [ya know...I *hate* confirmation of the facts...KWIM? ]

 

Talking about the resurgence of Urban Farming [goats and chickens and gardens are springing up in empty lots, etc] and about how folks who have never had money issues are being introduced to the Dept Human Services system....

 

:shakinghead: Is EVERYone gonna hafta be 'on the dole' ?

 

http://money.cnn.com/2009/08/06/news/econo...ney_mostpopular

 

 

Here are some snips.....

........In this recession-racked town, the lack of food is a serious problem. It's a theme that comes up again and again in conversations in Detroit. There isn't a single major chain supermarket in the city, forcing residents to buy food from corner stores. Often less healthy and more expensive food.........Detroiters have responded to this crisis. Huge amounts of vacant land has led to a resurgence in urban farming. Volunteers at local food pantries have also increased.

 

But the food crunch is intensifying, and spreading to people not used to dealing with hunger. As middle class workers lose their jobs, the same folks that used to donate to soup kitchens and pantries have become their fastest growing set of recipients..........Now it's middle class folks who lost their $60,000-a-year auto job, or home owners who got caught on the wrong side of the real estate bubble.

 

Many of these people have never navigated the public assistance bureaucracy before, and that makes getting aid to them a challenge.

 

"They have no idea where the DHS office is," said DeWayne Wells, president of Gleaners, the food distributor.

 

To assist these newly hungry, Wells pointed to the United Way's 211 program, where people can call the hotline and speak to an operator that guides them through a wide range of available social services.

 

The Michigan Department of Human Services is going digital, rolling out a program where people can apply for food stamps via the Web. .........."

 

 

MtRider [........ God help us all ........ ]

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I read that 1 in 9 are on FS nationwide. How long can that continue?

 

Just had a thought. Can the gov force retailers to accept FS? If the gov isn't paying the bill each month, the retailers sure can't afford to give the food away. How long till the gov starts handing out ious?

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How long till the gov starts handing out ious?
by CGA

 

Already happened ....last month, I believe. Couple states were doing just that. :shrug:

 

I LIKE the comments about the Urban Farms springing up tho. :cheer: Might create new jobs: Farm security.

 

 

MtRider

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kAre you all keeping up with the town hall meetings across America?

 

Huge deal. Very angry people. Sometimes calm but pointed. In our state, Rep Wu was basically told that if he couldn't or wouldn't read the laws before he voted on them, that maybe he was in the wrong line of work, because that certainly isn't what we voted him in for. His reply was that he's kept all his campaign promises.

 

Reports that people have been beaten or threatened after speaking up at town hall meetings. By whom, I'm not sure. But that's across American, not just in one or two pockets.

 

This is a huge red flag for me. Congress is being confronted by the people who voted them in. And it isn't pretty.

 

Our next town hall meeting will be held in the McMinnville police station. Not a good sign.

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The people yelling at the town meetings here, appear to have come not to discuss anything but to close the meeting down.

They make it impossible to get any work done.

 

If they are trying to get the meetings closed to the public, then they're going about it right. Myself, I like public input.

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Maybe some are there to cause trouble. But many are frustrated with the lack of answers being given by both replubican and democrat congresspeople.

 

The yelling people are saying the same things as calmer people in quieter town meetings.

 

Just the fact that town meetings are national news is enough for me to sit up and take notice, regardless of my political opinion.

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This is by Chuck Norris on "Obamacare" and the government telling YOU how to raise YOUR CHILD

 

http://townhall.com/Common/PrintPage.aspx?...92c7f6e&t=c

 

Dirty Secret No. 1 in Obamacare

Chuck Norris

Tuesday, August 11, 2009

 

Health care reforms are turning into health care revolts. Americans are turning up the heat on congressmen in town hall meetings across the U.S.

 

While watching these political hot August nights, I decided to research the reasons so many are opposed to Obamacare to separate the facts from the fantasy. What I discovered is that there are indeed dirty little secrets buried deep within the 1,000-plus page health care bill.

 

Culture of Corruption by Michelle Malkin FREE

 

Dirty secret No. 1 in Obamacare is about the government's coming into homes and usurping parental rights over child care and development.

 

It's outlined in sections 440 and 1904 of the House bill (Page 838), under the heading "home visitation programs for families with young children and families expecting children." The programs (provided via grants to states) would educate parents on child behavior and parenting skills.

 

The bill says that the government agents, "well-trained and competent staff," would "provide parents with knowledge of age-appropriate child development in cognitive, language, social, emotional, and motor domains ... modeling, consulting, and coaching on parenting practices," and "skills to interact with their child to enhance age-appropriate development."

 

Are you kidding me?! With whose parental principles and values? Their own? Certain experts'? From what field and theory of childhood development? As if there are one-size-fits-all parenting techniques! Do we really believe they would contextualize and personalize every form of parenting in their education, or would they merely universally indoctrinate with their own?

 

Are we to assume the state's mediators would understand every parent's social or religious core values on parenting? Or would they teach some secular-progressive and religiously neutered version of parental values and wisdom? And if they were to consult and coach those who expect babies, would they ever decide circumstances to be not beneficial for the children and encourage abortions?

 

One government rebuttal is that this program would be "voluntary." Is that right? Does that imply that this agency would just sit back passively until some parent needing parenting skills said, "I don't think I'll call my parents, priest or friends or read a plethora of books, but I'll go down to the local government offices"? To the contrary, the bill points to specific targeted groups and problems, on Page 840: The state "shall identify and prioritize serving communities that are in high need of such services, especially communities with a high proportion of low-income families."

 

Are we further to conclude by those words that low-income families know less about parenting? Are middle- and upper-class parents really better parents? Less neglectful of their children? Less needful of parental help and training? Is this "prioritized" training not a biased, discriminatory and even prejudicial stereotype and generalization that has no place in federal government, law or practice?

 

Bottom line: Is all this what you want or expect in a universal health care bill being rushed through Congress? Do you want government agents coming into your home and telling you how to parent your children? When did government health care turn into government child care?

 

Government needs less of a role in running our children's lives and more of a role in supporting parents' decisions for their children. Children belong to their parents, not the government. And the parents ought to have the right -- and government support -- to parent them without the fed's mandates, education or intervention in our homes.

 

Kids are very important to my wife, Gena, and me. That's why we've spent the past 17 years developing our nonprofit KICKSTART program in public schools in Texas. It builds up their self-esteem and teaches them respect and discipline. Of course, whether or not they participate in the program is their and their parents' choice.

 

How contrary is Obamacare's home intrusion and indoctrination family services, in which state agents prioritize houses to enter and enforce their universal values and principles upon the hearts and minds of families across America?

 

Government's real motives and rationale are quite simple, though rarely, if ever, stated. If one wants to control the future ebbs and flows of a country, one must have command over future generations. That is done by seizing parental and educational power, legislating preferred educational methods and materials, and limiting private educational options. It is so simple that any socialist can understand it. As Josef Stalin once stated, "Education is a weapon whose effects depend on who holds it in his hands and at whom it is aimed."

 

Before so-called universal health care turns into universal he** care, write or call your representative today and protest his voting Obamacare into law. Remind him that what is needed in Washington is a truly bipartisan group that is allowed an ample amount of time to work on a compromise health care law that wouldn't raise taxes (for anyone), regulate personal medical choices, ration health care or restrict American citizens.

 

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This would be a red flag to truck drivers. They are working on putting in a place here in Alabama close to Bessemer sort of a train depot. They said instead of hauling frieght by truck they are going to go back to trains like the older days because of the price of fuel. Its suppose to make like 5000 jobs but truckers making long hauls I would say will be hurting. Everyone has been wondering why diesel cost more then gas when its suppose to be cheaper to make I guess even though trains are diesel they must get better milage then trucks.

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Kelly, the thing is, a train's flat bed can carry two (2) 40 ft containers or one (1) 53 ft trailer. They use diesel but the engines are actually diesel-electric so they're pretty efficient. We've seen freight trains hauling nearly 100 cars packed with the 40 ft containers, which would take nearly 200 trucks off the road. But the trucks are still needed to get the containers (or trailers) to their terminus since the trains can't deliver to Wal-Mart or wherever!

 

I don't know how this will play out. There are some areas where trains aren't as common, especially out west.

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Toxic Loans Topping 5% May Push 150 Banks to Point of No Return

 

By Ari Levy

 

Aug. 14 (Bloomberg) -- More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank's equity and threaten its survival.

 

The number of banks exceeding the threshold more than doubled in the year through June, according to data compiled by Bloomberg, as real estate and credit-card defaults surged. Almost 300 reported 3 percent or more of their loans were nonperforming, a term for commercial and consumer debt that has stopped collecting interest or will no longer be paid in full.

 

The biggest banks with nonperforming loans of at least 5 percent include Wisconsin's Marshall & Ilsley Corp. and Georgia's Synovus Financial Corp., according to Bloomberg data. Among those exceeding 10 percent, the biggest in the 50 U.S. states was Michigan's Flagstar Bancorp. All said in second- quarter filings they're "well-capitalized" by regulatory standards, which means they're considered financially sound.

 

"At a 3 percent level, I'd be concerned that there's some underlying issue, and if they're at 5 percent, chances are regulators have them classified as being in unsafe and unsound condition," said Walter Mix, former commissioner of the California Department of Financial Institutions, and now a managing director of consulting firm LECG in Los Angeles. He wasn't commenting on any specific banks.

 

Missed payments by consumers, builders and small businesses pushed 72 lenders into failure this year, the most since 1992. More collapses may lie ahead as the recession causes increased defaults and swells the confidential U.S. list of "problem banks," which stood at 305 in the first quarter.

 

Cash Drain

 

Nonperforming loans can eat into a company's earnings and deplete cash, leaving banks below the minimum capital levels required by regulators. Three lenders with nonaccruing ratios of at least 6.2 percent as of March were closed last week. Chicago- based Corus Bankshares Inc., Austin-based Guaranty Financial Group Inc. and Colonial BancGroup Inc. in Montgomery, Alabama, each with ratios of at least 6.5 percent, said in the past month that they expect to be shut.

 

"This is a fairly widespread issue for the larger community banks and some regional banks across the country," said Mix of LECG, where William Isaac, former head of the Federal Deposit Insurance Corp., is chairman of the global financial services unit.

 

Ratios above 5 percent don't always lead to failures because banks keep capital cushions and set aside reserves to absorb bad loans. Banks with higher ratios of equity to total assets can better withstand such losses, said Jim Barth, a former chief economist at the Office of Thrift Supervision. Marshall & Ilsley and Synovus said they've been getting bad loans off their books by selling them.

 

Exclusions

 

Bloomberg's list was compiled by screening U.S. banks for nonperforming loans of 5 percent or more, and then ranked by assets. The list excluded U.S. territories and lenders that have already failed. Also left out were the 19 lenders that underwent the Treasury's stress tests in May; they were deemed "too big to fail" and told by regulators that government capital was available to keep them in business.

 

Excluding the stress-test list, banks with nonperformers above 5 percent had combined deposits of $193 billion, according to Bloomberg data. That's almost 15 times the size of the FDIC's deposit insurance fund at the end of the first quarter.

 

About 2.6 percent of the $7.74 trillion in bank loans outstanding in the U.S. at the end of March were nonaccruing, the highest in 17 years, according to the most recent data from the FDIC. Nonaccrual loans peaked at 3.27 percent in the second quarter of 1991, during the savings and loan crisis, and averaged 1.54 percent over the past 25 years.

 

'Off the Charts'

 

"These numbers are off the charts," said Blake Howells, an analyst at Becker Capital Management in Portland, Oregon, referring to the nonperforming loan levels at companies he follows. Banks are losing the "ability to try and earn their way through the cycle," said Howells, who previously spent 13 years at Minneapolis-based U.S. Bancorp.

 

Corus, with more than two-thirds of its loans nonperforming, has the highest rate among publicly traded banks. The company said last month that it's "critically undercapitalized" after five consecutive quarterly losses tied to defaults on condominium construction loans. Randy Curtis, Corus's interim chief executive officer, didn't respond to calls for comment.

 

Marshall & Ilsley, Wisconsin's biggest bank, reduced its nonperforming loans last month to 5.01 percent from 5.18 percent after selling $297 million in soured loans, mostly residential mortgages in Arizona, the Milwaukee-based company said Aug. 10.

 

Deadline for Nonperformers

 

The bank has "been very aggressive in identifying and tackling credit challenges," Chief Financial Officer Greg Smith said in an Aug. 12 interview. Smith said 26 percent of loans classified as nonperforming are overdue by less than the industry's typical standard of 90 days. With those excluded, the ratio would be around 3.7 percent, he said.

 

Synovus, plagued by defaulting construction loans in the Atlanta area, said nonperforming loans rose to 5.4 percent in the second quarter from 5.2 percent the previous period. Disposals of nonperforming assets reached $404 million in the quarter ended in June, the Columbus, Georgia-based company said.

 

Synovus is selling troubled loans and will continue its "aggressive stance on disposing of nonperforming assets" as long as the level is elevated, spokesman Greg Hudgison said in an e-mailed statement.

 

Michigan Home

 

Flagstar is based in Troy, Michigan, the state with the nation's highest unemployment rate. Flagstar has $16.4 billion in assets and reported last month that 11.2 percent of its loans were nonperforming; about two-thirds were home mortgages. Flagstar CFO Paul Borja didn't return repeated calls for comment.

 

The bank's allowance for loan losses was 5.4 percent of total loans at the end of the second quarter, compared with 3.3 percent at Synovus and 2.8 percent at Marshall & Ilsley, according to company filings. All three reported at least three straight quarterly deficits.

 

The FDIC doesn't comment on lenders that are open and operating and doesn't disclose which banks are on its problem list. The agency will probably impose an emergency fee on the more than 8,200 banks it insures in the fourth quarter to replenish the insurance fund, the second special assessment this year, Chairman Sheila Bair said last week. The FDIC attempts to sell deposits and assets of seized banks to healthier firms to avoid eroding the fund, said agency spokesman David Barr.

 

Capital Levels

 

To determine which banks are most troubled, regulators compare the ratio of nonperforming loans to the percentage of equity a firm has relative to its assets, said Barth, the former OTS economist. A company with 5 percent nonperforming loans and equity of 8 percent is better positioned than one with the same amount of troubled loans and equity of 4 percent, he said.

 

Flagstar's equity-to-assets ratio in the second quarter was 5.4 percent, Synovus's was 8.9 percent and Marshall & Ilsley, which raised $552 million through a stock sale in June, was at 11 percent, according to the banks.

 

The three lenders that failed last week -- Florida's First State Bank and Community National Bank and Oregon's Community First Bank -- all had nonperforming loans above 6 percent and equity ratios below 4.5 percent.

 

"The nonperforming ratio, in and of itself, should be a great concern," said Barth, a professor of finance at Auburn University in Alabama and senior finance fellow at the Milken Institute in Santa Monica, California. "It becomes even more troublesome when it goes above 3 percent and the equity-to-asset ratio is quite low."

 

Toast Time

 

While 5 percent can be "fatal" for home lenders, commercial real estate lenders may be able to withstand higher rates, said William K. Black, former lawyer at the Federal Home Loan Bank of San Francisco and the OTS. Commercial loans carry higher interest rates because they're riskier, he said.

 

"At the 5 percent range, you're probably hurting," said Black, an associate professor of economics and law at the University of Missouri-Kansas City. "Once it gets around 10 percent, you're likely toast."

 

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

 

Last Updated: August 14, 2009 00:00 EDT

 

 

http://bloomberg.com/apps/news?pid=2060108...id=aTTT9jivRIWE#

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This would be a red flag to truck drivers. They are working on putting in a place here in Alabama close to Bessemer sort of a train depot. They said instead of hauling frieght by truck they are going to go back to trains like the older days because of the price of fuel. Its suppose to make like 5000 jobs but truckers making long hauls I would say will be hurting. Everyone has been wondering why diesel cost more then gas when its suppose to be cheaper to make I guess even though trains are diesel they must get better milage then trucks.

 

 

Here is a link for that:

http://blog.al.com/businessnews/2009/08/no...icials_ans.html

 

Looks like they are wanting to do a corridor like they planned for Texas.

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Toxic Loans Topping 5% May Push 150 Banks to Point of No Return

 

By Ari Levy

 

Aug. 14 (Bloomberg) -- More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank's equity and threaten its survival.

 

The number of banks exceeding the threshold more than doubled in the year through June, according to data compiled by Bloomberg, as real estate and credit-card defaults surged. Almost 300 reported 3 percent or more of their loans were nonperforming, a term for commercial and consumer debt that has stopped collecting interest or will no longer be paid in full.

 

The biggest banks with nonperforming loans of at least 5 percent include Wisconsin's Marshall & Ilsley Corp. and Georgia's Synovus Financial Corp., according to Bloomberg data. Among those exceeding 10 percent, the biggest in the 50 U.S. states was Michigan's Flagstar Bancorp. All said in second- quarter filings they're "well-capitalized" by regulatory standards, which means they're considered financially sound.

 

"At a 3 percent level, I'd be concerned that there's some underlying issue, and if they're at 5 percent, chances are regulators have them classified as being in unsafe and unsound condition," said Walter Mix, former commissioner of the California Department of Financial Institutions, and now a managing director of consulting firm LECG in Los Angeles. He wasn't commenting on any specific banks.

 

Missed payments by consumers, builders and small businesses pushed 72 lenders into failure this year, the most since 1992. More collapses may lie ahead as the recession causes increased defaults and swells the confidential U.S. list of "problem banks," which stood at 305 in the first quarter.

 

Cash Drain

 

Nonperforming loans can eat into a company's earnings and deplete cash, leaving banks below the minimum capital levels required by regulators. Three lenders with nonaccruing ratios of at least 6.2 percent as of March were closed last week. Chicago- based Corus Bankshares Inc., Austin-based Guaranty Financial Group Inc. and Colonial BancGroup Inc. in Montgomery, Alabama, each with ratios of at least 6.5 percent, said in the past month that they expect to be shut.

 

"This is a fairly widespread issue for the larger community banks and some regional banks across the country," said Mix of LECG, where William Isaac, former head of the Federal Deposit Insurance Corp., is chairman of the global financial services unit.

 

Ratios above 5 percent don't always lead to failures because banks keep capital cushions and set aside reserves to absorb bad loans. Banks with higher ratios of equity to total assets can better withstand such losses, said Jim Barth, a former chief economist at the Office of Thrift Supervision. Marshall & Ilsley and Synovus said they've been getting bad loans off their books by selling them.

 

Exclusions

 

Bloomberg's list was compiled by screening U.S. banks for nonperforming loans of 5 percent or more, and then ranked by assets. The list excluded U.S. territories and lenders that have already failed. Also left out were the 19 lenders that underwent the Treasury's stress tests in May; they were deemed "too big to fail" and told by regulators that government capital was available to keep them in business.

 

Excluding the stress-test list, banks with nonperformers above 5 percent had combined deposits of $193 billion, according to Bloomberg data. That's almost 15 times the size of the FDIC's deposit insurance fund at the end of the first quarter.

 

About 2.6 percent of the $7.74 trillion in bank loans outstanding in the U.S. at the end of March were nonaccruing, the highest in 17 years, according to the most recent data from the FDIC. Nonaccrual loans peaked at 3.27 percent in the second quarter of 1991, during the savings and loan crisis, and averaged 1.54 percent over the past 25 years.

 

'Off the Charts'

 

"These numbers are off the charts," said Blake Howells, an analyst at Becker Capital Management in Portland, Oregon, referring to the nonperforming loan levels at companies he follows. Banks are losing the "ability to try and earn their way through the cycle," said Howells, who previously spent 13 years at Minneapolis-based U.S. Bancorp.

 

Corus, with more than two-thirds of its loans nonperforming, has the highest rate among publicly traded banks. The company said last month that it's "critically undercapitalized" after five consecutive quarterly losses tied to defaults on condominium construction loans. Randy Curtis, Corus's interim chief executive officer, didn't respond to calls for comment.

 

Marshall & Ilsley, Wisconsin's biggest bank, reduced its nonperforming loans last month to 5.01 percent from 5.18 percent after selling $297 million in soured loans, mostly residential mortgages in Arizona, the Milwaukee-based company said Aug. 10.

 

Deadline for Nonperformers

 

The bank has "been very aggressive in identifying and tackling credit challenges," Chief Financial Officer Greg Smith said in an Aug. 12 interview. Smith said 26 percent of loans classified as nonperforming are overdue by less than the industry's typical standard of 90 days. With those excluded, the ratio would be around 3.7 percent, he said.

 

Synovus, plagued by defaulting construction loans in the Atlanta area, said nonperforming loans rose to 5.4 percent in the second quarter from 5.2 percent the previous period. Disposals of nonperforming assets reached $404 million in the quarter ended in June, the Columbus, Georgia-based company said.

 

Synovus is selling troubled loans and will continue its "aggressive stance on disposing of nonperforming assets" as long as the level is elevated, spokesman Greg Hudgison said in an e-mailed statement.

 

Michigan Home

 

Flagstar is based in Troy, Michigan, the state with the nation's highest unemployment rate. Flagstar has $16.4 billion in assets and reported last month that 11.2 percent of its loans were nonperforming; about two-thirds were home mortgages. Flagstar CFO Paul Borja didn't return repeated calls for comment.

 

The bank's allowance for loan losses was 5.4 percent of total loans at the end of the second quarter, compared with 3.3 percent at Synovus and 2.8 percent at Marshall & Ilsley, according to company filings. All three reported at least three straight quarterly deficits.

 

The FDIC doesn't comment on lenders that are open and operating and doesn't disclose which banks are on its problem list. The agency will probably impose an emergency fee on the more than 8,200 banks it insures in the fourth quarter to replenish the insurance fund, the second special assessment this year, Chairman Sheila Bair said last week. The FDIC attempts to sell deposits and assets of seized banks to healthier firms to avoid eroding the fund, said agency spokesman David Barr.

 

Capital Levels

 

To determine which banks are most troubled, regulators compare the ratio of nonperforming loans to the percentage of equity a firm has relative to its assets, said Barth, the former OTS economist. A company with 5 percent nonperforming loans and equity of 8 percent is better positioned than one with the same amount of troubled loans and equity of 4 percent, he said.

 

Flagstar's equity-to-assets ratio in the second quarter was 5.4 percent, Synovus's was 8.9 percent and Marshall & Ilsley, which raised $552 million through a stock sale in June, was at 11 percent, according to the banks.

 

The three lenders that failed last week -- Florida's First State Bank and Community National Bank and Oregon's Community First Bank -- all had nonperforming loans above 6 percent and equity ratios below 4.5 percent.

 

"The nonperforming ratio, in and of itself, should be a great concern," said Barth, a professor of finance at Auburn University in Alabama and senior finance fellow at the Milken Institute in Santa Monica, California. "It becomes even more troublesome when it goes above 3 percent and the equity-to-asset ratio is quite low."

 

Toast Time

 

While 5 percent can be "fatal" for home lenders, commercial real estate lenders may be able to withstand higher rates, said William K. Black, former lawyer at the Federal Home Loan Bank of San Francisco and the OTS. Commercial loans carry higher interest rates because they're riskier, he said.

 

"At the 5 percent range, you're probably hurting," said Black, an associate professor of economics and law at the University of Missouri-Kansas City. "Once it gets around 10 percent, you're likely toast."

 

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

 

Last Updated: August 14, 2009 00:00 EDT

 

 

http://bloomberg.com/apps/news?pid=2060108...id=aTTT9jivRIWE#

 

 

These loans were what the TARP funds were for. Some of the banks blew the money instead of taking care of business.

Link to post

Well, continuing in that vein, here's an even scarier report:

 

http://www.silverbearcafe.com/private/08.09/breakdown.html

 

I'm not going to post the article here; it's too long and has lots of graphics but it is REALLY worth your time. The Silver Bear Cafe is a great place to get news you can use, free of much spin. They always have lots of food for thought.

 

Here is an excerpt:

 

DeutscheBank forecasts 48% of all US mortgage loans to be underwater by 2011. Ouch! Borrowers of loan products with already high underwater rates will only grow worse. By 2011, DBank predicts 89% of Option ARM borrowers will be underwater, up from 77% in 2009. That is correct, 77% of current Option ARM mortgages are stuck with negative equity, upside down. That is a recovery??? No! It is the source of further home price declines, to any analyst that features a brain stem. They expect the rate of underwater sub-prime borrowers to increase from 50% to 69%, and underwater Alt-A borrowers to increase from 49% to 66%. Then there is the commercial mortgage wrecking ball soon to hit the financial bank structures. The $3.5 trillion commercial real estate market is eroding. Defaults are doubling on loans for apartment buildings, office buildings, housing complexes, strip malls, hotels, hospitals. A staggering amount of loans must be rolled over this year into refinancing, or else go bust with liquidation to follow. Prices in commercial real estate have fallen about 39% from the peak in mid 2007, according to the MIT Center for Real Estate, with no signs of improvement or abatement.

 

FDIC Chairman Sheila Bair believes up to 500 more banks could fail, according to conversations between US senators and Bair from recent meetings. That story received little if any coverage. The real number is 1000 banks, from Bair's own conversations. Little banks are dropping like flies, and we are due for a big bank to fail very soon. No need to guess, since accidents will be random among the crippled edifices. The biggest bailed out banks merely invest in USTreasurys, capturing easy profits from the steep yield curve. Lastly, prepare for a big surprise. AIG will soon be forced to reveal it is bankrupt again, encountering another painful failure, despite all its falsified reports of revival. It is dead, even after $180 billion in aid. AIG has been busy conducting a shell game to move assets from recently audited subsidiaries to the next subsidiary to be audited, in order to hide its neverending bust played out. It is a veritable Black Hole under the USGovt roof. For each and every sector of the ailing defunct landscape, one can safely said THAT AINT RECOVERY, FOLKS!! Stimulus, rescue, bailouts, nationalizations, and more USDollar ruination lie directly ahead. Gold will thrive in the coming months, as panic sets in.

 

 

Edited by The MacKinnon
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This would be a red flag to truck drivers. They are working on putting in a place here in Alabama close to Bessemer sort of a train depot. They said instead of hauling frieght by truck they are going to go back to trains like the older days because of the price of fuel. Its suppose to make like 5000 jobs but truckers making long hauls I would say will be hurting. Everyone has been wondering why diesel cost more then gas when its suppose to be cheaper to make I guess even though trains are diesel they must get better milage then trucks.

 

Norfolk Southern has been showing ads here touting the advantages to everybody of sending freight by train. Their big emphasis is how many trucks will be off of the roads, leaving more room for everybody else. There are a lot of congested highways on the Eastern Seaboard.

Link to post

Oregon already isn't doing well.

 

*We are the top or near the top with the highest number of mortgages that are upside down due to the economic issues of the last year

*We are in the top 10 of highest number of foreclosures

 

On top of that, the front page news is that the grass seed farmers are in deep trouble. They are going to lose $150 to $300 per acre compared to last year.

 

We knew it was coming. The farmers had already purchased their seed etc last year when things started falling apart. After years of growing grass seed in the valley and doing so well with it financially, it's kind of hard to switch to something else when you aren't as sure of the markets and you have to get different machinery to harvest. Corn would have been great! But then they would have had to take out loans for planting and harvesting machinery, so they would be looking at a loss the first year.

 

Like I said, we all knew it was coming. :(

 

Lastly, eveyrone is kind of getting used to paying for gas and milk with change. I don't feel so embarassed about it anymore, because everyone has to do it once in a while.

 

I was in one of the stores whree you can go to pay your bills. There was a nice looking mom with 3 nice looking kids. I didn't want to eavesdrop, but I was waiting in line. She wanted to pay her bill (for what utility I don't know), but the sweet girl behind the cash register could take her dollar bills because you can't pay overdue bills at the store.

 

First off, this lady looked educated and sweet and not down and out at all, and her kids were well behaved and dressed in nice clothes of a nice family

Secondly, she was paying with crumpled small bills

Thirdly, she had a really nice cell phone

Fourthly, they didn't have a car. I guess they walked there, and she looked so discouraged after not being able to pay the bill on a Friday night (I'm guessing the utility was already turned off? and she couldn't pay by cash over the phone?)...that she called her children to her, and was on the phone trying to find a ride to the utility office.

 

I've seen this scenario with poor mothers, and I *really* hate that they have to go thru this!!

 

Watching the scenario with someone who had been well off enough to get those clothes and the nice cell phone sometime in the recent past somehow made the scenario that much uglier.

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Isn't that sad. We haven't been what people would call well off in a very long time. We are used to struggling - it came much earlier for us then most people these days. And still, i feel terrible for people that are loosing everything and I wish I could help them.

 

It amazes me that now the economy is so terrible here in Michigan most people here still aren't prepping. I hit a 10 for $10 this morning. i was 1 jars of smuckers grape jam and the container was 32 oz. (a good buy here!). I commented to the cashier how they must be going fast,, they weren't.

 

If it's getting bad in Oregon just keep doing what you are, believe me, it'll pay off.

 

 

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