Quote:
Originally Posted by trularin
You act like this instantly happened.
Remember, Rome wasn't burned in a day.
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And, also this ---
FDIC’s Bair warns on bank deposit insurance fund
http://www.chron.com/disp/story.mpl/front/6293463.html
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Think about this - at the end of 2007 the FDIC balance sheet indicated a reserve balance of just over $53 Billion. That report was issued on February 15, 2008. It’s now March 4, 2009 and no report covering 2008 has been posted for review.
There are two important facts to note about the balance sheet.
First, as of December 31st (2007), the FDIC only anticipated losses of insured institutions to amount to $124 million. Now with IndyMac alone estimated to cost between $4 to $8 billion, how realistic is their assumption about future losses?
Second, about $46.5 billion of their assets are held in U.S. Treasury securities and mostly at face value. Two questions arise. What is the market value of those securities today? What might the market value of those securities be if they lose their AAA rating?
Thus, it should be apparent that if additional financial institutions go under, the staff of the FDIC will be swamped and their reserves will be significantly reduced, particularly, if another large institution fails. It should not be forgotten that many of these financial institutions are interwoven into a financial web. When one part of the web is torn, it affects the entire structure.
The FDIC is in big trouble and now they must take funds from the Banking Industry to stay afloat - we just may be doomed.
On the other hand, just think what would happen if the FDIC was not able to pay out deposit balances when necessary - therefore, if the FDIC goes south, America goes south. Unfortunately, with what is happening - that scenario becomes a possible scenario.
The collapse of the FDIC would wipe out middle class savings (which have been increasing by 5% lately). Obama doesn't care about the FDIC. It will make more people wards of the state faster and this is the goal. No individual wealth and no individual power. Look what they are trying to do to Rush this week. Destroy the individual and leave only the state and those who are privileged to run it.