109 U.S. banks have failed so far this year, 23 in this quarter alone. These failures may not cost depositors, but they do come at a steep cost to the FDIC. As discussed here with ValuEngine’s Richard Suttmeier, the FDIC Deposit Insurance has already spent $18.93 billion this year, “well above the $15.33 billion prepaid assessments for all of 2010.”
The situation is likely even worse than the FDIC portrays, says William Black Associate Professor of Economics and Law at the University of Missouri-Kansas City.
“The FDIC is sitting there knowing that it has both the residential disaster and the commercial real estate disaster [and] knowing it doesn’t have remotely enough funds to pay for it,” he says.
What the FDIC should really be doing, Black argues, is raise its assessments to better reflect the true state of the banking system. However, that would turn an already precarious position into crisis as it would cause more banks would fail. The other option, though not politically plausible, would be to ask the Treasury Department or Congress for more funds.
Therefore, we’re left in our current situation. “That also means we’re following a Japanese type strategy of hiding the losses,” he says. “This is a really stupid strategy and it’s ours.”
It’s also not a money-making strategy for stock investors. Black reminds us Japan’s Nikkei is still worth about 75% less than it was before their bubble burst in late 1989.
More Here..The Bull Market Caused the Economic Crisis
We Lost $12 Trillion in Funny Money
More Here..
The banks and Wall St. are just ripping everyone off. I agree with the above commenter; call a spade a spade and get over it.
ReplyDeleteSince we live in a financial Cannabalizing state of existence thanks to our politicians who sell us out for pennies on the dollar. I thought why not help yall save a dollar!
ReplyDeleteThis is a formula for making huge amount of tea for approx 4 cents per large cup!
Ok tip to save money. Much of your money is spent on food. You may not realize it because you are constantly bombarded with ads telling you just how hungry you are and how bad you need that junk food. Part of that money is spent on drinks. It is a known fact in scientific circles that Water and Gatorade don’t really offer the body much difference when it comes to hydration. Having said that how about many glasses(4 plus) of Sweet Tea for a fraction of the cost of buying regular tea. I also have a cheat on this concept. You get the “Save Always” brand or whatever basic generic brand from a major chain like Wally. Now you brew your dark tea which is filled with antioxidants, etc. Once it is brewed it will be hot you need a couple of ice cubes on hand during the summer months. Now the Cheat, you could add sugar if you wanted but here I like to spend the money and buy Red Diamond Iced Tea which is around 2 Dollars for a gallon. You can 50/50 the mix or I like to 60/40 (or even 70/30) the mix with the cheap tea used more. It has virtually the same taste as the expensive tea at a fraction of the cost. You can make that 2dollar gallon last a week if you do it right. The tea bags are 100 bags for a dollar or about $1.30 approx. I use two bags per big brew and let them sit for at least 20 mins or so. This comes out to a brew of about 2.5cents per pot. Also to add even more energy to the drink you can get limes fairly cheap here, sometimes as many as 15 per dollar. One lime per pot of brewed tea and you will have plenty of good stuff. Its just one way to save your hard earned dollars so you can donate to Ron Paul for Prez 2012!
f ron paul, the system is broken, and it wont get up, it is over and you know that.
ReplyDeleteThe FDIC dies not have to have any money they are there for PERCEPTION ONLY to stop Bank Runs.
ReplyDeletePeople perceive their money is SAFE because the FDIC protects them.
People may realize in the future that their money NOT SAFE in fact their money is an debt anchor around their neck. So who cares about the FDIC then?
If you control PEOPLES PERCEPTION of reality then you control what they do in the reality that you have created for them to live in. Sort of a jail for the mind like THE MATRIX.
"The way to protect oneself from this insidious disease is to stay one step ahead of the central bankers."
ReplyDeleteThis statement reminds me of Jesus having enough of the fleecing of the little man and going into the temple and kicking ass til everyone realized he wasnt "playing around" with the "money-changers"
Was Jesus a pacifist? I think not...
Of course Ron Paul is just one person, but some of you are such hardcore "Naysayers" its a wonder you get up off your lazy flouridated body bag and find time to naysay someone... well at least you tried to do something today...
Until the 'welfare state' or those who are bought into(and sold-Out) the guv system of 'survival' then we will never see a collapse. How can things collapse when there is a 75 percent increase in food stamps in under a 2 year period. It is called crowd control or keeping the sheeple in a hypnotic daze while the last vestiges of America is slated for destruction, until they have fleeced every last bit they can, then there will be no restoration of our Republic. A hungry belly makes for an angry mob.
ReplyDeletePray the November elections get us back on the right track.And for god sakes next time VOTE FOR AN AMERICAN
sell your things and live overseas in a low cost country as an expat
ReplyDelete