Saturday, January 17, 2009

2009 & More Bank Failures

Please click on chart to expand.

Two more closed on Friday, further depleting the FDIC's insurance fund. To review, the fund was last reported to sport a reserve ratio of only 0.76%. That is, funds of $34.6 billion backing $4.54 trillion in deposits. Add to that the over $120 billion in corporate debt that the FDIC now insures (TLGP) and an estimated $230 million in losses caused by Friday's closures and you have a system in which THE TAXPAYER IS ESSENTIALLY INSURING THEIR OWN DEPOSITS. THE FDIC DOES NOT HAVE ENOUGH IN RESERVES, THE TAXPAYER WILL BE CALLED ON TO BACK THE FUND VIA TREASURY DEBT ISSUANCE. WE ARE BEING HAD.

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