Friday afternoon, the feds seized two more banks. The increase in bank seizures, failures and runs are a sure sign of economic difficulties that we are in. The Huffington Post connects the dots and calls it a depression. The situation is made worse when politicians do not want us talking about the Fannie Mae/Freddie Mac bailout, which the Senate approved. An interesting twist occurred in Florida, where a private group was threatening a bank seizure.A federal judge stepped in and issued an injunction to prevent the seizure of private assets. It seems that in the bank seizure business, the feds do not want any competition. Any way one decides to look at the banking and housing industries are going through tough times. Texas saw many bank seizures in the 1980’s related to the oil bust. It was out of those seizures, that a formula known as the “Texas Ratio” occurred.

(The Texas ratio is calculated by dividing the institution’s bad and delinquent loans by its cash on hand plus money set aside to cover loans that go bad. When the ration is 100 or higher, it means a bank is in deep financial distress. IndyMac’s recent Texas ratio was 116.)

Free Texas!

J Murrah

bank seizures, Current Affairs, economic depression, economic difficulties, Economic Independence, fannie mae, florida, freddie mac, indymac, private seizure of a bank, texas ratio

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