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FDIC's Bair warns on bank deposit insurance fund
Houston Chronicle ^

Posted on 03/04/2009 11:45:13 AM PST by txmissy

WASHINGTON — The head of the Federal Deposit Insurance Corp. has warned that the fund insuring Americans’ bank deposits could be wiped out this year without the money the agency is seeking in new fees from U.S. banks and thrifts.

FDIC Chairman Sheila Bair acknowledged, in a letter to bank CEOs, that the new increased fees and hefty emergency premium the agency voted to levy last week will bring a “significant expense” to banks, especially amid a recession and financial crisis when their earnings are under pressure.

“We also recognize that assessments reduce the funds that banks can lend in their communities to help revitalize the economy,” Bair wrote.

But given the accelerating bank failures that have been depleting the deposit insurance fund, she said, it “could become insolvent this year.”

“Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative,” Bair wrote in the letter dated Monday to the chief executives of the nation’s 8,305 federally insured banks and thrifts.

(Excerpt) Read more at chron.com ...


TOPICS: Breaking News; Business/Economy
KEYWORDS: 111th; banking; bho44; economy; fdic; first100days
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To: Jim Robinson

Chirp.


241 posted on 03/05/2009 7:41:57 PM PST by Hilltop (Control the high ground. Control the battlefield.)
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To: GoCards

Out of what?


242 posted on 03/05/2009 7:45:06 PM PST by Hilltop (Control the high ground. Control the battlefield.)
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To: reader25

“Cash” will not be king. Exchange “cash” for a hog?

You cannot eat fiat currency, but, you can enjoy a slaughtered hog.


243 posted on 03/05/2009 7:51:55 PM PST by Hilltop (Control the high ground. Control the battlefield.)
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To: norraad

LOL
Brevity is the soul of wit.

Thanks for your post!


244 posted on 03/05/2009 7:57:21 PM PST by Hilltop (Control the high ground. Control the battlefield.)
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To: Taffini

I’d only trust Oprah if I wished for advice on where to place a new black leather sofa in the den.

Sofa purchase is pending.


245 posted on 03/05/2009 8:04:27 PM PST by Hilltop (Control the high ground. Control the battlefield.)
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To: semantic
So the question becomes: would the Fed take a chance to print that much new money? It would have some serious inflationary consequences.

Inflation is the ONLY way that the U.S. will "meet its obligations"! There is no way to raise the revenue to meet its obligations.

We can count on a return of the "Carter Years" (in spades) when the recession/depression period ends!

246 posted on 03/05/2009 8:05:56 PM PST by ExSES (the "bottom-line")
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To: LomanBill

If a way can be found to manage that, I suppose it would be worth a try. What he has already proposed should embarrass any father.


247 posted on 03/06/2009 8:37:28 AM PST by DoughtyOne (Resolved: Gregg, McCain, Snowe, Spectre: 2010, Collins, Graham: 2014)
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To: Hilltop
She's startin' to look like a ;

black leather sofa

..jus' kiddin' , darlin' , luv yu, watch yu alll the tme!

248 posted on 03/06/2009 8:56:12 AM PST by norraad ("What light!">Blues Brothers)
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To: DoughtyOne

>>What he has already proposed should
>>embarrass any father.

Well, he’s presently drunk with his newly acquired power. No child should see their parents drunk

The critical time will be when Wall Street’s crash sobers him up and he realizes what a fool he’s made of himself. That’s when his puppet masters will nudge him towards military rule.

That will be a time for countering that “nudging” via leadership, wisdom, and compassion from the Right - not a time for piling on more irritation ala Oxycontin numbed dialectic boils, festering via Airwave on the right buttock of the Republic.


249 posted on 03/06/2009 9:20:56 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: LomanBill

Yes, well I’m sure Steele would agree with you.

I don’t.


250 posted on 03/06/2009 9:25:24 AM PST by DoughtyOne (Resolved: Gregg, McCain, Snowe, Spectre: 2010, Collins, Graham: 2014)
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To: mojitojoe

Sometimes it has to get worse before it gets better.


251 posted on 03/06/2009 9:27:17 AM PST by RobRoy
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To: semantic; PatriotGirl827

And to amplify what you said, watch this: http://www.youtube.com/watch?v=u6p3l8BXmhs

Go to 3:00 to get to the point that amplifies what you just said, but the whole video is very good.


252 posted on 03/06/2009 9:32:28 AM PST by RobRoy
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To: RobRoy
Thanx for the link. Time for my daily commercial: save more, spend less.

Hussein wishes to implement a 3-part takeover of the US economy:
1. Own the FIRE means of production (finance ie banks [Citi], insurance [AIG] & real estate [Fannie/Freddie])
2. Regulate/control health care
3. Direct/manage economy via energy (cap & trade)

These initiatives will only be successful if the Kenyan has sufficient tax revenues and adequate access to credit (Treasuries) to pay for his grandiose schemes.

Purposely slowing down the economy through a concerted effort to save more & spend less will help crater tax receipts. With falling revenues, -0- will be forced to borrow more to make up the shortfalls.

Escalating demand for debt (increased risk = increased prices of debt & higher interest rates), and a dawning realization that invested funds will not contribute to increased imports (Chinese perspective), will serve to detonate the bond market and dry up his ability to loan money.

No taxes and no Treasuries means the shiftless punk from ChiTown will be sh!t out of luck trying to take over our country. Wake up and get with the program. It's not really an option - we're literally in a fight for our lives. If we help breathe new life into the economy, we're merely funding the agents of our oppression.

253 posted on 03/06/2009 9:34:00 AM PST by semantic
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To: semantic

I’m breathing new life in one way: Guns, ammo, seeds, beans Rice, tire repair materials for my bicycles.

That is it.


254 posted on 03/06/2009 9:37:42 AM PST by RobRoy
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To: DoughtyOne
>>Yes, well I’m sure Steele would agree with you.
>>
>>I don’t.

Well we're free to disagree, presently. That was sort of the point, back in 1776.

That freedom is precisely what our would-be dialectic sheeple herders have always despised; and it is something they've always had designs on eliminating.

It's an individual’s responsibility to be aware of, and not assist them in achieving, that objective.

255 posted on 03/06/2009 9:38:08 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: semantic
>>These initiatives will only be successful if the
>>Kenyan has sufficient tax revenues and adequate
>>access to credit (Treasuries)

What's to stop him from simply firing up the printing presses?

His minions won't care as long as he keeps printing “Free Pie” with which to purchase bread, circuses, and beer.

Bread + Circuses + Beer = Pie.

The formula hasn't changed much since the last time the eagle flew over the Roman Empire...

256 posted on 03/06/2009 9:52:41 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: LomanBill
It's a game of high-stakes poker. Hussein will either be forced to cut back on entitlement programs or the Fed will have to engage in QE (ie quantitative easing aka "printing money"), which of course brings on inflation.

I think it is very doubtful that the Fed will take that route for the simple reason that they are an (nominally) independent institution. This country has never had hyper-inflation - I don't see the Fed & Congress (which would have to raise the debt ceiling and authorize the sale of Ts in the first place) willing to chance a Zimbwabe.

(Btw, a more logical explanation is that if printing money was effective, why would anyone ever work? Why haven't societies for 1,000s of years just created money?)

Either way works towards destroying the welfare state, which is our chief objective. Anyway, at the end of the day, someone is going to have to take the boy aside and explain to him that the game is over. We'll have significant budget cut backs and the Commies will have to plot for another generation.

257 posted on 03/06/2009 9:56:18 AM PST by semantic
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To: LomanBill

Yes, you’re free to say pretty much what you like. And folks who read what you say are free to assess what light they cast on you.

Right now we have one person in this nation at a highly visible position that won’t couch his words, and you refer to his offerings as “Oxycontin numbed dialectic boils, festering via Airwave on the right buttock of the Republic.”

That’s just pathetic IMO.


258 posted on 03/06/2009 10:12:32 AM PST by DoughtyOne (Resolved: Gregg, McCain, Snowe, Spectre: 2010, Collins, Graham: 2014)
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To: semantic; Carry_Okie
>>someone is going to have to take the boy aside
>>and explain to him that the game is over.

That's an unrealistic expectation, IMHO.

Seems to me the Mobsters who put Obama in power WANT to crash the system - the system of governance that was deliberately constructed to prevent folks like them from exploiting and acting out the instinctive nature that has always plagued humanity.

The Tyranny of fascist collectivism is in our nature. The American founders recognized this and attempted to construct a framework of governance to protect us from that nature.

Others recognize the same nature, but instead exploit it for their own gratification.

It's nothing new:

Meet the New Boss, same as the Old Baal
—The Who?

259 posted on 03/06/2009 10:15:42 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: LomanBill
Seems to me the Mobsters who put Obama in power WANT to crash the system

There's a big difference between want and ability. In order to pull this off (btw, I completely agree with you that this is their objective), they need OUR own money in which to do it. No money, no takeover. Simple as that.

Ironic, isn't it? We've been funding the very agents of our oppression. Yet to throw off the yoke and deny them their goal is easily within our reach.

Everyone is cutting back anyway, so it's not like "save more, spend less" requires any affirmative action. It just spins it in a more positive light so that as people cut back, they'll have a goal in mind as to what it is they are achieving.

260 posted on 03/06/2009 10:30:25 AM PST by semantic
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