The Federal Deposit Insurance Corporation (FDIC) was hammered this week when a third quarter report demonstrated that the FDIC was running in the red to the sum of $8.2 billion. This is troubling since the FDIC protects deposits in member banks up to $250,000 and funds covered by the deposit insurance fund (DIF) are over $5.3 trillion, this amount is over one-third of our nationwide GDP. The FDIC as of Q1 of 2009 has 5,381 employees. Is that enough to deal with the enormous banking crisis?
The FDIC is proud of saying that since 1934 no depositor has ever lost a single cent of insured funds due to any bank failure. Yet what isn’t stated is the trillions needed to prop up the failing banking system. Of course, as time has gone on and the banking system has gotten more fragile the amount of insured deposits has ramped up:
1934 – $2,500
1935 – $5,000
1950 – $10,000
1966 – $15,000
1969 – $20,000
1974 – $40,000
1980 – $100,000
2008 – $250,000
Did you notice how no banks were taken over this week? This definitely bucks the overall trend for the year:
LINK HERE
Prepare for the Great Depression.
Survival Seeds
It's going to be interesting to see if over 2000 banks go under in 2010 which is what Bob Chapman predicts..that is scary for sure, as the FDIC is already in the red. Can they pay these people on time? Best check your bank right now and be wary! Laura
ReplyDeletedont worry laura helicopter ben got this all figured out.lack of funds just crank up the presses.This ploy will be repeated again and again until the Fed has completed its ruination of the currency.
ReplyDeleteThe fact that the FDIC insurance has gone from $2,500 in 1934 to $250,000 in 2008 tells us there is a serious problem.
ReplyDeleteThat is an increase of $3344 dollars per year.
all i can say is... OMG no surprise here.....
ReplyDeleteWhat is scary is that never in my 42.5 years of life can I remember a time when it seemed so many people, local, county, state, and federal agencies, as well as, corps, and companies and non-profits were in the red like this.
ReplyDeleteIt seems everywhere you turn, the bucket is empty and has more bills to pay than cash available!
WOW!
If the FDIC is out, then the FED and treasury surely are the only backstop.
Welcome to the US(SR)A!!!