Comments on: 10 FDIC Charts and Graphs Highlighting Bank Problems: FDIC Analysis Examining 2009 Future of over 8,000 Banks Insured by the FDIC. http://www.mybudget360.com/10-fdic-charts-and-graphs-highlighting-bank-problems-fdic-analysis-examining-2009-future-of-over-8000-banks-insured-by-the-fdic/ Investing ideas for preserving wealth in a fluctuating market. Sat, 13 Mar 2010 01:35:24 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: John Smith http://www.mybudget360.com/10-fdic-charts-and-graphs-highlighting-bank-problems-fdic-analysis-examining-2009-future-of-over-8000-banks-insured-by-the-fdic/comment-page-1/#comment-4701 John Smith Fri, 20 Mar 2009 15:28:01 +0000 http://www.mybudget360.com/10-fdic-charts-and-graphs-highlighting-bank-problems-fdic-analysis-examining-2009-future-of-over-8000-banks-insured-by-the-fdic/#comment-4701 I think the reflection on the numbers coming out of the FDIC and trends moving forward is right on - regardless of how you evaluate the "notional value" as the numbers are big enough that at this point we are left no choice have a back to create some IOUs between the U.S. govenment and Fed to bail out the banks and the economy...and some devaluing of the USD along the way. The question is not if we will come out of this, but rather how long it will take and longer term how many more times we will be permitted to do this with foreign owners of government debt approaching 30% (up from 24% in 2006) and China becoming an ever larger owner. Saving grace continues to be the myth of decoupling...at least for now. I think the reflection on the numbers coming out of the FDIC and trends moving forward is right on – regardless of how you evaluate the “notional value” as the numbers are big enough that at this point we are left no choice have a back to create some IOUs between the U.S. govenment and Fed to bail out the banks and the economy…and some devaluing of the USD along the way. The question is not if we will come out of this, but rather how long it will take and longer term how many more times we will be permitted to do this with foreign owners of government debt approaching 30% (up from 24% in 2006) and China becoming an ever larger owner. Saving grace continues to be the myth of decoupling…at least for now.

]]> By: Bill M http://www.mybudget360.com/10-fdic-charts-and-graphs-highlighting-bank-problems-fdic-analysis-examining-2009-future-of-over-8000-banks-insured-by-the-fdic/comment-page-1/#comment-2785 Bill M Sun, 04 Jan 2009 02:48:00 +0000 http://www.mybudget360.com/10-fdic-charts-and-graphs-highlighting-bank-problems-fdic-analysis-examining-2009-future-of-over-8000-banks-insured-by-the-fdic/#comment-2785 If FDIC ever fails which I don't think it will happed, it is not a very smart economic move, but if it moves into a liquidity crisis, they will just borrow from the "Fed" like every other bank is doing now. If FDIC ever fails which I don’t think it will happed, it is not a very smart economic move, but if it moves into a liquidity crisis, they will just borrow from the “Fed” like every other bank is doing now.

]]> By: Enginerd http://www.mybudget360.com/10-fdic-charts-and-graphs-highlighting-bank-problems-fdic-analysis-examining-2009-future-of-over-8000-banks-insured-by-the-fdic/comment-page-1/#comment-2784 Enginerd Sun, 04 Jan 2009 02:34:37 +0000 http://www.mybudget360.com/10-fdic-charts-and-graphs-highlighting-bank-problems-fdic-analysis-examining-2009-future-of-over-8000-banks-insured-by-the-fdic/#comment-2784 That last graph is meaningless. The "notional value" of options are the strike price. A put and a call on a stock of strike price 100 have exactly inverse value, but the "notional value" of the two together is 200. This, as you put it, is flat out absurd. Only the absurdity is in the metric being used, not in the actual situation. I'm not knowledgeable enough about swaps to say for sure, but I'd bet the "notional value" being used above is something equally ridiculous. That last graph is meaningless. The “notional value” of options are the strike price. A put and a call on a stock of strike price 100 have exactly inverse value, but the “notional value” of the two together is 200. This, as you put it, is flat out absurd. Only the absurdity is in the metric being used, not in the actual situation.

I’m not knowledgeable enough about swaps to say for sure, but I’d bet the “notional value” being used above is something equally ridiculous.

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