Community | November 24, 2009 | 22 comments

FDIC is Officially Bankrupt

source: http://www2.fdic.gov/qbp/2009sep/qbp.pdf

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WASHINGTON, DC - Today the FDIC released its quarterly report (http://www2.fdic.gov/qbp/2009sep/qbp.pdf), revealing that the Deposit Insurance Fund is bankrupt and now stands at negative $8.2 billion dollars. (page 13/26) Central planner and FDIC Chairwoman Sheila Bair has confirmed separately that future bank failures will be funded by the bailout fund allotted to the FDIC.

If you are new to the US banking scheme, you might question why banks and the FDIC are going bankrupt -- don't they HAVE all the money? The answer is they do not, banks in July 2008 had lent out about 99.4% of all the money they had on deposit. This is despite the rather insane truth that the Federal Reserve can create more money whenever it desires.

The FDIC had predicted its bankruptcy in a September letter. I had been following the FDIC closely for the past 18 months, but I finally threw my hands in the air after seeing how the report was rigged to keep the DIF fund positive in the Q2 2009 report, as I reported in "FDIC: 'We Aren't Bankrupt and Everything is A-OK.'"

However, the best friends of the FED banking cartel, the United States Congress, has a lot more nice surprises in store for America's working class. Politicians like to wave around one hand as they mess around with the other hand behind their backs, out of sight. While all the fury of the concerned is focused on the health care spend-and-tax bill, HR 3996, dubbed by yours truly as the "Automatic Bailout Bill" will grant the FED the ability to bailout any "individual, trust, or corporation" (section 1701) as well as impose a bureaucratic system of unneeded regulations.

Here's the article by Jake Towne on his website: http://towneforcongress.com/economy/fdic-officially-goes-bankrupt. (It's slow so be patient.)
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22 comments // FDIC is Officially Bankrupt

  • akamaial
    • 0
      akamaial [removed]  
    • Image

    • ~ It is the interest on the national debt that makes our future unstable. The exploding size of that burden suggests that, short of devaluing the dollar and taking a large bite out of the middle class through inflation and taxation, there is no way to ever pay down that bill.

      ~ With our mounting national debt and budget deficits, it is reasonable to assume that in the near future interest rates on new and refinanced debt could double or triple.

      ~ In stark but simple terms, unless Americans are made aware of this financial crisis and demand accountability, the very fabric of our society will be destroyed. Interest rates and interest costs will soar and government revenues will be devoured by interest on the national debt. Eventually, most of what we spend on Social Security, Medicare, education, national defense and much more may have to come from new borrowing, if such funding can be obtained. Left unchecked, this destructive deficit-debt cycle will leave the White House and Congress with either having to default on the national debt or instruct the Treasury to run the printing presses into a policy of hyperinflation.

      http://online.wsj.com/article/SB10001424052748704429304574467071019099570.html

      ~ It is against this background that the fools in Washington (yes, sadly I mean our elected representatives) are now debating whether to create social programs we can't afford.
      Stupid is as stupid does.... so lets give our govt control of national health care to the tune of trillions of taxpayer dollars...yeah, that'll turn the economic crisis around...you think?

    • 2 years ago
  • rickm8
    • 0
      rickm8  

    • ROFL, obviously the gubment is lacking cash. but no, no, no lets push through more programs with appetites for cash similar to those of the bankers who helped get us in this mess.

    • 2 years ago
  • RaceBannon
  • passjay
    • 0
      passjay  

    • Why don't they just burrow some money from the FED...................Oooops forgot...the American goverment is already indebted to them as is.

    • 2 years ago
  • neocongo
    • 0
      neocongo  

    • The FDIC was scheduled to receive bailout money, and now they are. Big fucking deal. Over the remotest amount of nothing, and you anti-government conspiracy freaks lose it. If you start foaming at the mouth, it's probably rabies. Get gun, apply to mouth. Pull trigger.

    • 2 years ago
  • bbar
    • 0
      bbar  
    • neocongo:

      Yeah you're totally right neo (again) -- who cares if the DIF fund has not only dried up, but actually ended up negative last quarter. Who cares if the institution that's supposed to "bailout" depositors actually needs a bailout of their own.

      The fact is, they don't have a clue what's going on. With the Federal Deposit Insurance Reform Act of 2005 they were supposed to "regulate"/assess the banks. Hey, how's that working out for them now?

      So let's just print more money, keep interest rates artificially low, prop up this artificial market even more than it already is, inflate the bubble again and watch it all come down...again. Okay good idea.

    • 2 years ago
  • lvp
  • ras_menelik
    • 0
      ras_menelik  
    • Image

    • China Offers U.S. Subprime Loan on All U.S. Territories

      China launched repo-copters to relocate properties to a Beijing warehouse, where they will be auctioned and sold on eBay. - photo by Tim Etler

    • 2 years ago
  • ras_menelik
  • artemis6
  • LowShred
  • bushama
  • bbar
  • asherp
  • kennymotown
  • Ihatethemall
  • courage
  • kennymotown
  • lvp
  • nursediesel
  • cyman01
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