The FDIC Is Broke - Now What?

ChrisMartenson.com ^ | 8/17/09 | Chris Martenson

[FromLori]

This blog post is the most recent Martenson Report which I am now making available for wider distribution. I believe this needs to be read and understood by as many people as possible.

Executive Summary With the most recent bank failures, the FDIC is out of funds. The FDIC is levying a one-time fee on member banks to cover the shortfall, but it will not be enough and it punishes the prudent. The FDIC has been suspiciously slow at shutting down banks that have admittedly already failed. Banks have been allowed to overestimate the actual worth of their assets using "mark-to-fantasy" accounting. Hundreds of banks are likely already mortally wounded and set to fail. The FDIC means well, but creates a moral hazard the effects of which now haunt us. Take prudent action: Choose only high-rated banks, and keep cash out of the bank.

[screaminsunshine]

Might be time to put my savings back in the Mattress Savings Bank.

[dynachrome]

Shell game. Much of the stimulous package has not been spent, yet. Giant slush fund for O-bozo.

[Kackikat]

BEWARE a gov’t that might change currencies at any time, and let’s work harder NOT TO ALLOW the gov’t (pg 59) HR3200 get electronic transfer power in our bank accounts...

[Daisyjane69]

Lady, that kind of post makes me wonder if I wouldn’t be better off getting a bottle of wine tonight.

LOL

[Political Junkie Too]

Mason jars buried in the back yard?

-PJ

[Kansas58]

This is where the “TARP” and “Stimulus” funds should go, but we will fund ACORN instead.

[screaminsunshine]

Hey need that for my shine.

[netmilsmom]

I’m heading off to Sam’s club.
More rice, some beans, more peanut butter, some crackers, more coffee........

[HardStarboard]

>>>Shell game. Much of the stimulous package has not been spent, yet.<<<

That's because they haven't issued the treasury bills to cover it - and there is no cash-on-hand.

No one wants our Treasuries anymore. The last two auctions were 50% subsidized by the Fed....illegal and inflationary.

Big trouble coming soon!!

[lmr]

Our banking system is still imploding?

I thought that Obama brought us back from the ‘brink’ and this recession had ‘bottomed out’.

Are Obama, his ACORN Nazi cohorts, Democrats in Congress and their compliant media propaganda arm lying to us?

[Diana in Wisconsin]

I'll join you!

[LibLieSlayer]

obamanomics... cutting off the legs of Capitalism one leg at a time. stalin smiles, looking up from hell.

LLS

[Daisyjane69]

Good!

Just about chef boyardee, junk silver, and lettuce seed time.

[FromLori]

That is where mine is going.

[Political Junkie Too]

Beware the revenuers!

-PJ

[combat_boots]

I have had relatives with money in mattresses and stuffed coffee cans buried in the back yard. Such folks never forgot what the GD actually did to so many.

[minip]

As Dave Ramsey says, “Beans and rice, rice and beans.”

[Vince Ferrer]

Small and regional banks protested vigorously, noting that they were effectively being punished for remaining sound while Wall Street and a few notorious banks played with fire. They have an excellent point. Note the strong language used by ICBA president Camden Fine: The group — made up of mostly small town, rural banks that never traded in exotic mortgage-backed securities — is outraged [by the proposed levy]. [Independent Community Bankers of America] ICBA President Camden R. Fine compares the FDIC to Japan’s attack on Pearl Harbor. He calls the special assessment on the nation’s 8,000 community banks “crippling,” and blamed “greed, incompetence and sins of the Wall Street firms that so crippled this nation’s economy.”

As far as I know membership in the FDIC is completely voluntary. Since the great depression, few banks would want to operate independently, because the customers would demand the perceived safety. But now, a wise customer may want the perceived safety of a non FDIC bank.

The ICBA Atlas is free to shrug, and set up their own insurance program.

[rawhide]

Thanks Lori. Valuable information posted here.