CITI BANK is in failure right now. BOA is close to it. The OBAMA Administration and the media are lately admitting the BANKS are caught in this recession-- (see article immediately below) and everyone is probably only admitting this new danger of multiple BANKS CLOSING with your MONEY disappearing forever because transparency is becoming a major issue. Ron Paul has just managed to get one of his KILL THE FED bills into Discussion in CONGRESS. Researchers into these matters do not even remember when BANKS actually had sufficient assets, if ever, to cover deposits. They have barely had pennies on the dollar for years. PONZI scheme "Fractional banking" is a term you want to investigate. Don't take my word for it, Google the term. The FIX is at end of this piece. Real simple one, too. I learned it from Gramps who went thru The Great Depression in 1918-1933 in Germany.
FDIC Discloses Deposit Insurance Fund Is Now
Negative
By Tyler Durden
09/29/2009
[link to www.zerohedge.com]
In an unprecedented disclosure, the FDIC has highlighted that
the DIF reserve ratio went negative as of September 30. So one can safely
assume that the DIF is now well into negative territory: as of today depositors
have no insurance courtesy of a banking system that has leeched out all
the
capital of the Federal Deposit Insurance Corporation. Let's pray there
is no run on any bank soon.
Pursuant to these requirements, staff estimates that both the Fund balance and the reserve ratio as of September 30, 2009, will be negative. This reflects, in part, an increase in provisioning for anticipated failures. In contrast, cash and marketable securities available to resolve failed institutions remain positive.
Additionally, the FDIC has now raised its expectation for bank failure costs (meaning what they think they'll have to pay for all those busted banks,) from $70 billion $100 billion. It will really be ten times higher, all of it unpayable. )
Staff has also projected the Fund balance and reserve ratio for each quarter over the next several years using the most recently available information on expected failures and loss rates and statistical analyses of trends in CAMELS downgrades, failure rates and loss rates. Staff projects that, over the period 2009 through 2013, the Fund could incur approximately $100 billion in failure costs. Staff projects that most of these costs will occur in 2009 and 2010. Approximately $25 billion of the $100 billion amount has already been incurred in failure costs so far in 2009. Staff projects that most of these costs will occur in 2009 and 2010.
First Mary Schapiro has failed at her task of "regulating" anything
on Wall Street, and now Sheila Bair presides over a newly insolvent institution.
Chalk one up to Washington's success at "containing" the crisis. Zero Hedge
wishes Ms. Bair all the luck in the world in returning the DIF to its
statutory minimum requirement of 1.15% of all insured deposits (a shortfall
of a mere hundred billion or so). Maybe she can convert the FDIC to a REIT
and have Merrill Lynch do a concurrent IPO and follow-on offering (while
Goldman raises it to a Conviction Buy which incorporates the firm's expectations
for 10% GDP growth in 2010 coupled with projections for $1,000 per barrel
of crude)?
FDIC's full memorandum outlining its failure can be found here.
[A link to www.fdic.gov]
Q: WHAT DO WE DO WHEN BANK CLOSES WITH OUR
MONEY IN IT?
A: ZIP. There is no extracting yourself from
harm's way at that late date
Q: WHAT DO WE DO NOW TO PREVENT THAT OCURRING?
A: INVEST ALL YOUR CASH in FOOD
PRODUCING land with water source, ONE GAS TANK FROM THE CITY, NOW!
AND LEARN TO PLANT FRUIT, NUT TREES, VEGIES. Get a HIPPIE COUPLE who knows
gardening to live on it, build a cabin. Do not hold on to cash. August
2012, inflation will go bezerk. Your life savings will buy lunch for two.
Use the money now to buy the only precious thing out there. Alternative
is a BOARDING HOUSE
where you take in employed folks, with big garden. Some huge White
Elephant fixer-upper in a bad section of town would do the job.
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