Posted on 09/29/2009 4:31:37 PM PDT by Kartographer
The government said the fund that protects consumer bank deposits has fallen into the red and will remain there into 2012, a pointed symbol of how the aftershocks of the financial crisis will reverberate for years as banks continue to fail at a high rate.
The negative balance is a headache for the Federal Deposit Insurance Corp., which runs the fund. On Tuesday, it proposed the unprecedented step of having the banking industry prepay $45 billion in fees by the end of the year to give the government more breathing room to handle future failures.
(Excerpt) Read more at online.wsj.com ...
"Honey, we shrunk the economy!"
As if they can afford that! So many are in terrible shape currently.
Importantly, according to the Federal Deposit Insurance Act, the FDIC can *only* bail out banks with money it has in its accounts. And while it can get more from the US Treasury, this is not automatic. So if there are a number of banks that need a bail out, there may be a delay before they *can* be bailed out.
And if they are in bad shape, this may mean a “bank holiday”, which is very bad news for depositors. During the Great Depression, some bank holidays lasted from 3-300 days. A long time to be without access to your money.
A friend of my mailman’s brother-in-law’s ex wife’s chimney sweep has been quietly taking out a grand a week in cash.
(Cough).
Blue Sky and Unicorns crapping Skittles Baby!!!
You told me you wouldn't mention this!!
Put ALL of your savings in Canada.
TDCanada Trust, go to a branch in Canada, in person:
https://www.tdcanadatrust.com/locator/
Call them, talk to a manager and tell them what you want to do.
Open an account, then send your money to it when you get back home.
Fill out form Form TD F 90-22.1 ( google it)
and pay taxes on interest and gains , don’t try to hide it.
Canada eh?
I’ve been after my husband for months and months about this FDIC problem. His response is always “what else are we to do, we can’t hide it under the mattress?”
Do Canadian banks have their own type of FDIC insurance?
Be skilful when you go to Canada, Call ahead and get a managers name.Make an appointment. Tell him what you want to do.
Yes.But they never have to use it.The Canadian System is heavily supervised and audited by government.
Interesting chart! There's about 100 banks to the page and there are 87 pages. You have to get almost to the end of the eighth page before you run into two-star banks, which are rated below peer. The first eight pages are NR (Not Rated) or one star, which is the lowest rating. The three star banks (performing) don't begin until page 18, out of 84, so roughly 22% of the banks listed are in trouble or soon will be.
I did a search on Credit Unions, which, as suspected, are in better shape (80 pages).
Folks might want to check HERE. You can sort on the heading, so sort on "State" to see your area or use the right hand box and check your bank. .
That friend of my mailman’s brother-in-law’s ex wife’s chimney sweep has the right idea. Right now, the US has the bizarre situation of a “currency split”, in which electronic money hyper inflates, but paper money strongly deflates, at the same time.
To start with, only paper money is “legal tender”, two words that suddenly take on enormous importance. By law, everyone must accept legal tender for debts. But nobody is compelled by law to accept any form of electronic payment, not credit cards, debit cards, checks, wire transfers, any other token, any of it.
But while the government can play games with electronic money, pretending it can create trillions of dollars just by entering the new amount into a computer, it cannot do so with paper money.
The US Bureau of Engraving and Printing has only two printing offices capable of producing US currency. One in Washington, D.C., and the other in Fort Worth, TX. Year around, they print at 100% capacity, mostly $1 bills, and in doing so can only print enough paper money to back a mere 5% of daily US retail trade.
That is, if our economy was solely based on paper money and coins, that currency would already be 95% deflated. Deflation also happened in the Great Depression, but nowhere as severe as it could today. As the expression went, “You could buy a pound of hamburger for a nickel, but nobody had a nickel.”
And this is the situation that we face today. Importantly, the US government *can’t* physically print more money without opening 18 more high security printing offices, and buying a LOT more paper and ink, which is never abundant. Nor can it print higher denomination money for the simple fact that there are very few $100 and $50 bills in circulation, and even if they printed $500 bills, nobody could make currency change for them.
What good is a $500 bill if you can’t spend it? It has the same value as the old $1000 bill, that has been removed from circulation. That is, it has only novelty value.
And if every business out there demands cash, and refuses to accept electronic money, cash becomes king. Even federal employees will have to demand cash, because they can’t spend money that nobody will take.
For any large depositors, this is a valuable list. FDIC refuses to list ratings, so Bankrate is the best available. I found out my bank is a 2 star rated bank.
Your breakdown is correct. We could easily see a thousand banks fail in the next two years. Credit unions are in better shape, but still there are many that are on shaky ground. Several have been shut down so far this year!
Financial ping!
Your thoughts?
As it has been for the last year: Food, guns and ammo. And if Obamacare pass and Cap and Trade get passed I recommend lots and lots of ammo.
Unless he is buying gold eagles with those $, he is toast.
What, you trust a commie oriented country (Canada)? Better to put your money in gold and silver hard assets, screw national current good luck. Canada will ride the wave until they need the cash, then seize it, no problemo.
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