Yes, we can use the "C" word now

bonddad lays the reality out pretty starkly today in this post on Daily Kos. He was clear with the title. It's a Very Serious Banking Crises

This comes on the heels of being struck with the Wall Journal's 7/12 story entitled Crises Deepens as Big Bank Fails.

IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators, in the third-largest bank failure in U.S. history. IndyMac is the biggest mortgage lender to go under since a fall in housing prices and surge in defaults began rippling through the economy last year -- and it likely won't be the last. Banking regulators are bracing for a slew of failures over the next year as analysts say housing prices have yet to bottom out.

The fall of IndyMac and the increasing use of the word "Crisis" by financial media are painting a clear picture that we are in for some deep trouble. How far and how deep is the only remaining question.

Today, the WSJ followed up with an even graver warning. Bank Fears Spread After Seizure of IndyMac

The federal government's seizure of IndyMac Bank is deepening worries among executives, regulators and consumers about the U.S. banking industry, which is in a tightening bind following a long run of prosperity. Banks and thrifts are struggling against a rising tide of bad loans, and it is becoming increasingly clear that some lenders won't be able to escape. While fewer banks are expected to fail than the 834 that went under from 1990 to 1992, it will likely take several years for battered financial institutions to work through their bad loans and replenish their depleted capital.

Further down, this WSJ article focuses on the problem with insured vs. uninsured deposits and raises issues facing more than just middle class Americans. The chart above reflects this looming issue. Well worth the read.