Amusing Google Ad

Look at the Google Ad running on the sidebar right now.

IndyMac Federal Bank
9 Mo CD at 4.15% APY.
Open a FDIC Insured
High-Yield CD Today!

You Know the Saying, "Celebrities Always Die in Threes"? Banks Always Fail in Hundreds.

A bank failure - particularly the failure of a large bank for reasons that are not idiosyncratic - should sound alarm bells in the brain of anyone who knows the statistical distribution of bank failures.



Prediction: the chart will soon have another spike of bank failures.

One other observation: the FDIC is going to use up a huge chunk of its capital paying IndyMac claims. Expect them to raise deposit insurance premiums for other banks. This means even lower profits for banks.