CIT Files for Bankruptcy

[StartingOver08]

http://dealbook.blogs.nytimes.com/2009/11/01/cit-to-file-for-bankruptcy-soon/?pagemode=print

[andy158]

Wonder how much in bonuses were paid out by THIS bank before the announcement? Don't worrry our government will bail them out again with our tax money if the chapter 11 fails. It pays to have a strong lobby in congress.

[DeadManCrawling]

This is a very important news story. Aside from the obvious implications like taxpayer money and so on, it is a harbinger of more to come, I think.

Tip of the iceberg, indeed.

Other major lenders are on their heels to a degree that is, so far, being hidden behind accounting practices and government secrecy. The gov't has a list of about 600 lenders it regards as being appropriate for BK. They are propping them up in the short term, but do not release dollar figures, or info on the size of the institutions.

Advanta will topple soon, too, I think. By first quarter, at the latest, I imagine.

The other biggies remain mired in trouble as well, Citi, BoA, all the majors are on the verge of collapse, while the average person thinks a recovery is underway or has already occurred. Interesting times ahead.

[BobMango]

Speaking of tip of the iceberg, I just saw the other day that Fannie Mae's seriously delinquent rate ramped up to 4.45% From 1.57% in the prior year. That's a 300% plus increase. If folks think the housing crisis is over they are sadly mistaken.

When you take into account that we are printing up about $80 billion a month to keep them afloat you may be concerned about how our kids and grandkids are gonna pay for all this.

[banca rotta]

This is a very important news story. Aside from the obvious implications like taxpayer money and so on, it is a harbinger of more to come, I think.

Tip of the iceberg, indeed.

Other major lenders are on their heels to a degree that is, so far, being hidden behind accounting practices and government secrecy. The gov't has a list of about 600 lenders it regards as being appropriate for BK. They are propping them up in the short term, but do not release dollar figures, or info on the size of the institutions.

Advanta will topple soon, too, I think. By first quarter, at the latest, I imagine.

The other biggies remain mired in trouble as well, Citi, BoA, all the majors are on the verge of collapse, while the average person thinks a recovery is underway or has already occurred. Interesting times ahead.

I agree with most of what you say except the average person like most of us here know the truth that the recovery is window dressing.

The only ones that think we are in recovery are some CNBC reporters as well as others in the media and a small handful of Obama supporters. The least educated of his supporters believes it all. Only when he stops the stimulus and welfare to the wealthy will we be in recovery but that isn't happening anytime soon so enjoy the ride and brush up on your Chinese.

[banca rotta]

Speaking of tip of the iceberg, I just saw the other day that Fannie Mae's seriously delinquent rate ramped up to 4.45% From 1.57% in the prior year. That's a 300% plus increase. If folks think the housing crisis is over they are sadly mistaken.

When you take into account that we are printing up about $80 billion a month to keep them afloat you may be concerned about how our kids and grandkids are gonna pay for all this.

That's an easy one. Our kids will earn $80 billion a year and the national debt will be paid for very quickly.

It worked well in Germany 80 years ago. I just hope our kids grow their own crops otherwise they won't have anything to eat.

[shabam]

With these lenders collapsing, good luck trying to obtain credit in the near future. If people with no bankruptcy on their file and sound credit reports cannot obtain credit, we will have no chance.

[DeadManCrawling]

With these lenders collapsing, good luck trying to obtain credit in the near future. If people with no bankruptcy on their file and sound credit reports cannot obtain credit, we will have no chance.

We, on the forum, must count ourselves fortunate in this case. We, at least, are learning to live with NO credit, and do for ourselves what has, in the past, been expected of banks, society, and government.

Self-sustaining is a good word to keep handy, and many of us on the forum are making moves to be self-sustaining, at least as much as possible.

It will be trial by fire, anyway, but I personally, am preparing for the flames.

[justbroke]

Bring on the Ameros!

(If only I had stockpiled some when they were announced. )

[Lajazz947]

We, on the forum, must count ourselves fortunate in this case. We, at least, are learning to live with NO credit, and do for ourselves what has, in the past, been expected of banks, society, and government.

Self-sustaining is a good word to keep handy, and many of us on the forum are making moves to be self-sustaining, at least as much as possible.

It will be trial by fire, anyway, but I personally, am preparing for the flames.

Good comments.

We have completely adjusted to all cash and it feesl great to have no consumer debt.

I am patiently waiting to get my modification and tax debt straightened out before I buy a used car with A/C and in the meantime I have fixed up ( all cash ) my 98 Jeep Wrangler and maintain my wife's '03 Acura.

The Jeep Rides rough and the Acura is getting along in miles but we own them outright and we sure do not miss the $1400+ payments we had on our other cars.

[nc73]

It is possible to live without credit. I hope they all go bankrupt. It will force everyone to live within their means.