Posted on 02/24/2010 12:19:51 PM PST by Cheap_Hessian
The Federal Deposit Insurance Corporation is bracing for a new wave of bank failures that could cost the agency many billions of dollars and further strain its finances.
With bank failures running at their highest level in nearly two decades, the F.D.I.C. is racing to keep up with rising losses to its insurance fund, which safeguards savers’ deposits. On Tuesday, the agency announced that it had placed 702 lenders on its list of “problem” banks, the highest number since 1993.
Not all of those banks are destined to founder, and F.D.I.C. officials said Tuesday that they expected failures to peak this year. But they also warned that the fund might have to cover $20 billion in additional losses by 2013 — a bill that could be even greater if the economy worsens.
F.D.I.C. officials say the fund has ample resources to cope with its projected losses.
“We think that we have the cash we need,” Sheila C. Bair, the F.D.I.C. chairwoman, said in an interview on Tuesday. She said it was unlikely the F.D.I.C. would need to tap its emergency credit line with the Treasury Department, although she did not rule out such an action.
(Excerpt) Read more at nytimes.com ...
The Savings and Loan debacle crashed 700 banks. 1,000 executives were convicted. This time? Zip, nada, zero. No fraud going on here.
The govt bailed out the big criminal banks and is allowing the small and regional banks to go bankrupt and be acquired by the big govt supported banks.
This isn’t by chance.
No, none of this is by chance. It is intentional and deliberate and it is not over.
And on the “other government hand”, they are whining about banks not making Enough loans.
Ah, Mister bank analyst, if your metaphor is correct, the storm wall on the opposite side is about to hit; it's NOT clean-up time!!
You get paid, it is “wired” to bank A ,which “wires” payments to banks B, C, and D. When you use your debit card the bank “wires” virtual money to the store's account.
When you buy stock or put virtual money into your 401K, no actual money changes hands.
People just don't get it. The world is going plastic and you have absolutely NOTHING to show for it.
Some day people will get it. There is no money to cover all of this debt.
It's just some person typing in numbers on a computer somewhere.
“The Federal Deposit Insurance Corporation is bracing for a new wave of bank failures that could cost the agency many billions of dollars and further strain its finances.”
What finances?
There’s no “lockbox”.
“This isn’t by chance.”
What, you mean the 50 other times it has happened the exact same way wasn’t by chance, either? One of these days we might actually learn from history.
“Ah, Mister bank analyst, if your metaphor is correct”
It’s not correct, but why should he limit himself to making mistakes in one discipline only?
History tells us we don't.
“There is no money to cover all of this debt.”
It’s more than that. Our money itself is, in fact, debt. Federal Reserve notes come into being when the Federal Reserve creates an obligation against itself. An obligation that it will never (for the most part, can never, although it does own some things of value) repay. To put it simply, the Fed creates money out its legal power to issue credit. And people accept its notes not because they have faith that the Fed can cover its debts, but because the law demands they accept them (it’s right there on your bills, “legal tender” “for all debts public and private”).
If there were no such thing as debt, there would be no more money. Everyone knows it. That’s why they pretend like the world is going to end whenever there’s a panic (though, of course, the world wouldn’t end. The economy would grind to a halt, temporarily, but all our goods and all our capital would still be there). The same people, ironically, also continuously tempt the system to collapse. They do so, through their banks, by issuing still more debt, called “loans,” on top of the original debt. Which debt, when it is in turn deposited in a bank, itself is further inflated upon. And so on, and so on. Sometimes people speculate on particular loans, bundle them as “securities,” sell insurance on them, and speculate further. And so on.
Really, it never stops. When the speculation (on loans, securities, or whatever) goes bad, banks (big ones, at least) don’t worry too much. The Fed will issue still more debt, out of nothing, to cover it. And people will live with it, because the FDIC will keep them warm (HA!). Oh, and the law says they must. Not that they must use banks, but that they must accept Fed notes, which ensures they will, in turn, use banks.
But you’re right, there isn’t enough money to cover any of it. Not the money created by banks in the realm of ten times larger than the value kept in bank vaults. Nor the money kept in the vaults, neither, which itself was created out of nothing in the first place.
however, I'll say this...people in they're hearts KNOW but we can do NOTHING about it....we've been good little doobees and kept saving into our 401's....now, we're stuck....
when the govt controls every avenue of legal money exchange,one has little hope....
heck, they even want to license garage sales in some areas and tax them...
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