The FDIC closed 7 banks last Friday.
Click here for a rundown on some major banking issues from Jim Sinclair.
Some interesting things are brewing in the credit markets, and of course, the F-TV talking heads are not covering it as they should. The credit market is still frozen and now the cracks are showing……
CIT, the retail industry creditor, is unofficially bankrupt. Implosion will happen.
Capmark, the commercial industry creditor, is on its way to bankruptcy court, offically now.
GE Capital will be gone too at some point.
GMAC too (or Ben prints more money for that one)
Even if the government will not let these companies “officially” declare insolvency for the good of the country, it doesn’t matter. Whether official or not, these industries have no means of credit. Therefore, they are frozen and will implode at some point. There is no growth possiblity at all.
The only thing the government is trying to do (the only thing they can do) is control when certain institutions implode and make sure the public is as blind as possible. At some point, they will even lose that control.
Uncle Harry came out with his monthly letter yesterday. He is now suggesting your “ark” have 50% precious metals, with half of that in the physical metal. I completely agree. No cash, only short-term bonds.
The global financial crisis is not getting better, it is building up pressure. Nothing has been fixed.
Make sure you are prepared.
muses of the moment 
I might mention that bankruptcies and bank closures surge at the end of a bear market, not the beginning. While the market may not go up in terms of real dollars, thee is nothing to say it can’t print new highs in Obama dollars.
The best analog for this market is 1937, not 1932. The most dangerous thing you can hold is cash – equity holders made out like bandits in the Weimar republic. The herd owns cash, and the herd is always wrong.
Comment by Shemran McCoy — October 27, 2009 @ 8:30 pm