Holy Cow! Now Indy Mac went under a few days ago. I thought this was ridiculous:
On June 26, 2008, several letters by Senator Charles Schumer (D-NY), a member of the Senate Banking Committee, chairman of Congress’ Joint Economic Committee and the third-ranking Democrat in the Senate, were released. These opined that “The possible collapse of big mortgage lender IndyMac Bancorp Inc. poses significant financial risks to its borrowers and depositors, and regulators may not be ready to intervene to protect them”. The letters set off a bank run. IndyMac depositors, fearing for the worst, sought to withdraw their funds from the ailing bank. Regulators and others in the financial sector quickly criticized Senator Schumer for publicly releasing his letter, which acted to further destabilize the bank.
(Wikipedia: Indymac)
It’s like a scene out of It’s a Wonderful Life! Gigantic banks folding overnight, it’s being taken over by the Feds (Just like democrats want). Everyone runs for their money.. It’s a terrible thing.
