IndyMac has shut its doors, leaving depositors with a very stressful weekend as they try to find out whether their deposits are secured by the FDIC. And, even if they are, how soon before they can get to their money.
And, in the wake of that, there are rumblings that Freddie Mac and Fannie Mae may be next. If that happens, it will be very very difficult to get a mortgage loan for at least a few months. I talked to Aaron Van Trojen (Morgan Financial) two days ago and he said that there would likely be NO stated income loans available by the end of the month.
On the positive side of all of that, Morgan Financial just got approved two days ago to open a Private Bank in Arizona. I probably am going to get a note from Aaron on that one – I think I just scooped their big announcement. But, I thought we needed some positive news here.
Does this mean the end is near? Of course not. I could go on and on (and will, if anyone even cares) about my opinion on what needs to happen with monetary policy in crisis times. Paul Volker pulled us out of even scarier times in the 1980’s.
But, there are some action steps you should take. First, find out if your current deposits are insured. You can do that by checking with your bank or, even better, checking with the FDIC online. I have the link and info in the First Class Lounge Forum. Second, check if your bank is one of the “imploded” lenders. There’s a higher risk with them. My favorite site is the (Implode-o-meter)[http://ml-implode.com/]