MINNESOTA MELTDOWN FREE

Day later this happens elsewhere… my radar is up big time for Monday morning and to the contrary I am cashing a lot out of there. Interesting one current bank I use just last Thursday offered me a crazy good short term interest rate for for any new cash deposit of 250k or better. Yellen should have been way out ahead of this and the watching their quarterlies better.

The nature of their business demands they always keep “dirt” flow moving but there are scenario’s to extreme for that, which will fold them as well and all the gazillions of subs they use. There are some very large National developers who are publicly traded that are in trouble. There is more of this scenario than we are being told. Some other bank is going to get hurt on that deal. The problem is, the land developer has a 600 million dollar balloon payment he is going to have to default on. The builder he had contracted to sell them to just walked away from a 10 million dollar earnest money. Let's hope.įWIW, I know of a large land developer who just completed a few large lot subdivisions in Texas and Arizona. Supposedly, the amount of money in the bank NOT covered by the FDIC $250k maximum is HUGE, which is good for taxpayers, since it means there may be enough equity left in the bank to pay off those who are covered by the insurance. The brain trust who ran the bank took too long to back out of those 30 year sinking securities, and they got what they deserved. All gone, goodbye, thanks for all the fish. So depositors decided, :hey, I'm done getting fleeced on my parked money, see ya.' But, boo-ya, the cash to give those depositors their money back is in long term T-bills that only an idiot would have considered a reasonable mono-strategy. 30 years is a long time to tell those who have money parked at the bank getting no interest:'be patient'. So the Fed started economic tightening, rates went up, and those T-bills went underwater. Sorry, Charlie, but the good times don't last forever, and eventually, the piper comes to call. Of course, they failed to consider that the Fed might one day be forced, at economic gun-point, to raise rates.

MINNESOTA MELTDOWN FREE

The geniuses at the bank decided 'hey, we'll park this money in long term Treasuries, chasing a couple of percent of risk free interest and we'll all get rich with our genius risk-free plan that requires us to do nothing but collect the interest and pay ourselves huge end of year bonuses.'

The bank took deposits that they were paying effectively 0% interest on. A snapchatter had a birds-eye view of a Minnesota parking lot after a massive snowstorm. I borrowed this from a commenter at the Wall St Journal, but it summarizes what happened pretty well. Youd think they would know better by now.

Minnesota meltdown