The IndyMac bank failure was the fifth this year. What do you think will happen if more banks fail?

Question

Report: 150 Banks Could Fail Over Next 18 Months

Financial analysts are projecting that as many as 150 banks could fail over the next eighteen months as the nation’s financial crisis worsens. ... Billionaire investor George Soros said Monday that the current financial market turmoil represents the most serious financial crisis of our lifetime.

http://www.democracynow.org/2008/7/15/headlines#1

And this:

The Australian

http://www.theaustralian.news.com.au/story/0,25197,24012456-36418,00.html

The bank was the fifth FDIC-insured failure of the year, and is expected to cost the FDIC between $US4 billion and $US8 billion, wiping out as much as 10 per cent of its $US53-billion Deposit Insurance Fund.

I think it is worth repeating, the IndyMac bailout cost 10% of the entire Federal Deposit Insurance Fund. What happens if these banks keep failing, if 150 banks fail!!?!?!?

Answer 1

The 1929 depression was triggered by a bank failure in Austria.

History is a cycle.

Answer 2

I think we are headed towards another depression. The last one in 1929 lasted for 10 years.

Answer 3

The government needs to stop stepping in to "save" these companies. They took risks they shouldn't have taken if they had good judgement. Often for every bad choice, there is a bad reaction.

There has to be a point where the government stops bailing out these companies!!! And if it doesn't, then the people need to step up and say "Enough is enough!" That probably will not happen though because no one wants to loose it all.