The FDIC has been quietly training thousands of accountants, property managers, asset appraisers, etc -- http://www.fdic.gov/about/jobs/oncamp.html. In your neighborhood, you may know of empty houses with NO “For Sale” sign out front that have NOT been statutorily-foreclosed on. WHY?
The Financial Accounting Standards Board eased the rules on mark-to-market bookkeeping in April. But the banks can't keep the foreclosed properties off the books FOREVER.
When banks are "compelled" by the FDIC to begin executing on the mass of "non-foreclosures" that have been piling up the last few months, the new rules will bring all those non-executed foreclosures onto the books. When that happens, they'll be forced to ‘mark to market’ and will have to put the new low value of the properties onto their books. The huge loses mean they'll be even further uncapitalized, and the government will force those banks to raise more capital, or close down.
As a result, it's really worse than the banks are reporting ... in more ways than one!
Within months, the Second wave of foreclosures will start kicking in, while the FDIC Deposit Insurance will have dried up because the public does NOT want more Bailouts, as inflation starts to spike due to piles of HARD cash sitting in the Federal Reserves...
$300 Billion in Foreclosures since October; $1.4 Trillion between now and Fall 2012 ...
Most likely, the FDIC Deposit Insurance funds have dried up since Mar 09 -- it just hasn't been disclosed to the public yet...
The US Treasury is printing money like mad, and the public wants NO MORE BAILOUTs.
