'Where there is smoke, there is fire'

Re: 'Feds close down IndyMac Bank' (July 11)

Dear Editor:

The old adage, "Where there is smoke, there is fire," comes into play here. We have lots more (closures) to go. This is a repeat of the early 1990s when all of us taxpayers had to pay for the shenanigans of the savings-and-loans.

Now you're going to see Congress bailing out banks and other lenders. How the system is going to work without a secondary funding market is going to be fun.

Like Robert Toll of Toll Bros. builders said, "We're heading for a depression." They will be mentioning the "Big D" more and more from here on in.

Dick Dennis
The Landed Gentry Publications (Capitol Real Estate & Funding)
Sun City, Calif.

Dear Editor:

I find that making public the letter and comments of Sen. Charles Schumer is very similar to the cause of the Savings and Loan crisis of the '80s when information was leaked to the public. That caused a rush on deposits. Most every working person in the U.S. understands that the economy is not good and that this kind of communication causes panic. If history serves me, this is what happened in the 1930s. Depositors lined up to get their money from their banks. No bank can withstand this if most of their depositors demand their money in cash. Sen. Schumer and the rest of our representatives and senators should be working to solve the problem rather than making it worse.

Terry R. Eaton
Realty Executives
Glendale, Ariz.

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