We are in the Eye of the Hurricane

By Mid to Late October... It will Not feel like a Recession but rather a Depression!

Here are the reasons why...

#1. We're about to see the Largest Bulk, of the "option arm-risky Loans" written by the banks, Re-adjust from a Fixed-- "Teaser-rate" to a Variable rate.

Home owners will go from a 4.25-4.5% interest rate, to 8-10% (Libor rates). People will No longer afford their mortgage payment! Foreclosures Will Skyrocket!..

Banks will Not have equity (payments) coming in...They're going to Fail!

#2. Banking system is Under water; according to the FDIC website, we have already seen more than Three times as many banks Fail this year, than the last 10 years put together... Banking Holiday??

The FDIC has published information about yet another "stimulus" plan called Foreclosure Prevention Initiative which you can read about by clicking the above link.

#3. Unemployment is rising; many prominent economist believe Real unemployment is closer to 15%... At the height of the 1930s Depression, unemployment hit 18%...we're almost there!

#4. Housing is being artificially kept from crashing by Banks, whom are holding onto foreclosed properties, Only releasing a small amount of inventory.. They don't want to Flood the regional market with excess inventory.. Hence; Crashing Prices even further!

Nevertheless, foreclosures are rising ...They will have to release inventory at one point!

#5. The FEDS continue to bailout the banks by Buying "Toxic" Mortgage Backed Security, for both residential & commercial loans. Plus, the auto industry by their creative "Cash for Clunkers" program. Not to mention, the FEDS are Now Buying their own Bonds, at the T-Bill Auctions... China doesn't want our Debt/Bonds anymore...Who can blame them?

Ladies and Gentlemen, the writing is on the wall.

It's about to get Really Bad, Really Quick!

http://www.bankrate.com/finance/savings/q-a-with-the-fdic-s-david-barr-1.aspx

Questions for David Barr (FDIC Spokesperson):

Some industry analysts are predicting more than 200 bank failures in 2009. Does that seem like a reasonable number?

Predicting failures from the outside is a difficult thing to do. Last year we had 25 failures. To go back to when we had more than 25 failures in a given year you'd have to go to 1993, when we had 50. In 1992, we had 181.

From: http://www.bankrate.com/finance/savings/2009-list-of-failed-banks.aspx

2009 list of (94 so far by September) failed banks

Failed bankDate closedEstimated cost to DIF ($millions)

Irwin Union Bank, F.S.B., Louisville, KY*9/18/2009*850 for both

Irwin Union Bank and Trust Co., Columbus, IN*9/18/2009*850 for both

Corus Bank, National Association, Chicago, IL9/11/20091,700

Brickwell Community Bank, Woodbury, MN9/11/200922

Venture Bank, Lacy, WA9/11/2009298

First Bank of Kansas City, Kansas City, MO9/4/20096

InBank, Oak Forest, IL9/4/200966

Vantus Bank, Sioux City, IA9/4/2009168

Platinum Community Bank, Rolling Meadows, IL9/4/2009114.3

First State Bank, Flagstaff, AZ9/4/200947

Bradford Bank, Baltimore, MD8/28/200997

Mainstreet Bank, Forest Lake, MN8/28/200995

Affinity Bank, Ventura, CA8/28/2009254

eBank, Atlanta, GA8/21/200963

First Coweta Bank, Newman, GA8/21/200948

CapitalSouth Bank, Birmingham, AL8/21/2009151

Guaranty Bank, Austin, TX8/21/20093,000

Community Bank of Nevada, Las Vegas, NV8/14/20091,400

Community Bank of Arizona, Phoenix, AZ8/14/200926

Union Bank, National Assoc., Gilbert, AZ8/14/200961

Colonial Bank, Montgomery, AL8/14/20092,800

Dwelling House Savings and Loan Assoc., Pittsburgh, PA8/14/20097

Community First Bank, Prineville, OR8/7/200945

Community National Bank of Sarasota County, Venice, FL8/7/200924

First State Bank, Sarasota, FL8/7/2009116

Mutual Bank, Harvey, IL7/31/2009696

First BankAmericano, Elizabeth, NJ7/31/200915

Peoples Community Bank, West Chester, OH7/31/2009130

First State Bank of Altus, Altus, OK7/31/200925

Integrity Bank, Jupiter, FL7/31/200946

Waterford Village Bank, Williamsville, NY7/24/20095.6

Security Bank of Jones County, Gray, GA7/24/2009807

Security Bank of Houston County, Perry, GA7/24/2009807

Security Bank of Bibb County, Macon, GA7/24/2009807

Security Bank of North Metro, Woodstock, GA7/24/2009807

Security Bank of North Fulton, Alpharetta, GA7/24/2009807

Security Bank of Gwinnett County, Suwanee, GA7/24/2009807

Temecula Valley Bank, Temecula, CA7/17/2009391

Vineyard Bank, Rancho Cucamonga, CA7/17/2009579

First Piedmont Bank, Winder, GA7/17/200929

BankFirst, Sioux Falls, SD7/17/200991

Bank of Wyoming, Thermopolis, WY7/10/200927

John Warner Bank, Clinton, IL7/2/200910

First State Bank of Winchester, Winchester, IL7/2/20096

Elizabeth State Bank, Elizabeth, IL7/2/200911.2

First National Bank of Danville, Danville, IL7/2/200924

Rock River Bank, Oregon, IL7/2/200927.6

Millennium State Bank of Texas, Dallas, TX7/2/200947

Founders Bank, Worth, IL7/2/2009188.5

Mirae Bank, Los Angeles, CA6/26/200950

MetroPacific Bank, Irvine, CA6/26/200929

Horizon Bank, Pine City, MN6/26/200933.5

Neighborhood Community Bank, Newnan, GA6/26/200966.7

Community Bank of West Georgia, Villa Rica, GA6/26/200985

First National Bank of Anthony, Anthony, KS6/19/200932.2

Cooperative Bank, Wilmington, NC6/19/2009217

Southern Community Bank, Fayetteville, GA6/19/2009114

Bank of Lincolnwood, Lincolnwood, IL6/5/200983

Citizens National Bank, Macomb, IL5/22/2009106

Strategic Capital Bank, Champaign, IL5/22/2009173

BankUnited, Coral Gables, FL5/21/20094,900

Westsound Bank, Bremerton, WA5/8/2009108

America West Bank, Layton, UT5/1/2009119.4

Citizens Community Bank, Ridgewood, NJ5/1/200918.1

Silverton Bank, Atlanta, GA5/1/20091,003

First Bank of Idaho, Ketchum, ID4/24/2009191.2

First Bank of Beverly Hills, CA4/24/2009394

Michigan Heritage Bank, Farmington Hills, MI4/24/200971.3

American Southern Bank, Kennesaw, GA4/24/200941.9

Great Basin Bank, Elko, NV4/17/200942

American Sterling Bank, Sugar Creek, MO4/17/200942

New Frontier Bank, Greeley, CO4/10/2009670

Cape Fear Bank, Wilmington, NC4/10/2009131

Omni National Bank, Atlanta, GA3/27/2009290

FirstCity Bank, Stockbridge, GA3/20/2009100

Colorado National Bank, Colorado Springs, CO3/20/20099

Teambank, N.A., Paola, KA3/20/200998

Freedom Bank of Georgia, Commerce, GA3/6/200936.2

Security Savings Bank, Henderson, NV2/27/200959.1

Heritage Community Bank, Glenwood, IL2/27/200941.6

Silver Falls Bank, Silverton, OR2/20/200950

Pinnacle Bank, Beaverton, OR2/13/200912.1

Corn Belt Bank & Trust, Pittsfield, IL2/13/2009100

Riverside Bank of the Gulf Coast, Cape Coral, FL2/13/2009201.5

Sherman County Bank, Loup City, NE2/13/200928

County Bank, Merced, CA2/6/2009135

Alliance Bank, Culver City, CA2/6/2009206

FirstBank Financial Services, McDonough, GA2/6/2009111

Ocala NB, Ocala, FL1/30/200999.6

Suburban FSB, Crofton, MD1/30/2009126

Magnet Bank, Salt Lake City, UT1/30/2009119.4

1st Centennial Bank, Redlands, CA1/23/2009227

Bank of Clark County, Vancouver, WA1/16/2009120 - 145

National Bank of Commerce, Berkely, IL1/16/200997.1