From The RampartsJunious Ricardo StantonUS Bank Failure Update“However, don't worry about losing the money in your checking account if your bank goes under. Congress has already approved a $500 billion line of credit to the FDIC. Without a doubt, that line of credit is going to have to be tapped. This does emphasize the insanity of having the FDIC provide the guarantees for the PPIP [Public-Private Investment Program]. The fund simply does not have the resources available to do it. The money for the inevitable large losses that the fund will take on the program will come from that line of credit. The prospect of the FDIC paying back that loan anytime soon from increased assessments on the banks is extremely remote. This is simply a back-door bailout of the FDIC, structured as a line of credit so it does not increase the reported budget deficit.” FDIC Fund Running Dry Dirk van Dijk, CFA On Wednesday May 27, 2009, 2:22 pm EDT http://finance.yahoo.com/news/The cable news networks and the corporatist propaganda machine are not telling us the truth about just how precarious the financial situation is in this country. They would rather keep us distracted by American Idol, sports, the latest celebrity gossip and disinformation that provide on point analysis of the current economic situation. For example some media reported a half million jobs were lost in April and every now and then we get reports that home mortgage defaults and foreclosures are still on the rise but did you know that as of May of this year thirty-six banks have failed and had to be taken into receivership by the FDIC? Six banks failed in January, ten in February, five in March, seven in April and thus far this month (May) eight have failed. Don’t you think this is important information? Keep in mind there were twenty-three bank failures in 2008 up from only three in 2007 and none in 2005 and 2006.Based on these numbers, we can see we are engulfed in an alarming trend which has major implications for us. Not only are bank failures increasing the list of troubled banks is growing.“As the FDIC has had to step in to take over more and more insolvent banks, the fund has dwindled to dangerously low levels. At the same time, the number of problem banks continues to grow at a rapid pace. At the end of the first quarter there were 305 'problem institutions' with a total of $220.0 billion in assets, up from 252 institutions and $159.4 billion in assets at the end of 2008. At the end of the quarter, the Deposit insurance fund was at just $13.0 billion, or 0.27% of insured deposits, a decline of 24.7% in the quarter alone.” FDIC Fund Running Dry http://finance.yahoo.com/newsThese bank failures is putting immense pressure on the Federal Deposit Insurance Corporation (FDIC). While it is true the banks fund the FDIC it is also true that as the premiums increase the banks will pass the costs onto us the consumers. Keep in mind we aren’t getting that much of a return on our savings or the interests they pay on our checking accounts if any. (As an aside this is one of the reasons for the low US savings rate, the low interest rates/payments on savings accounts have served as a disincentive to save.)Many of the bank failures are tied to the financial meltdown. The financial implosion is the result of a shift in priorities from an essentially goods producing based economy (based upon and underwritten by exploitation and war) to a fraud based casino style economy by the financial oligarches and their politician puppets. “Since about 1950, return on investments in manufacturing has sharply decreased, leading to the creation of a fantasy economy of financial scams such as derivatives, swaps, futures, options, mortgage-backed securities (MBSs), collateralized debt obligations (CDOs), and structured investment vehicles (SIVs). There has been a massive migration of capital from real, productive industry to the ‘speculative sector’ run by financial giants like AIG and Lehman Brothers. All of these swindles are unreal, mere entries in digital ‘space.’ Derivatives, for example, are mere mathematical formulas in which profits are supposed to derive not from trading assets but from speculation on the expectations of the risk of underlying assets. Such speculative chimera have created a nuclear device that has now exploded, mortally wounding the ‘real economy.’ Economic Collapse www.hermes-press.com/collapse.htm Wall Street is reaping what they have sown. Unfortunuately for us they persuaded their bought and paid for lackeys in Congress and the White House (both Bu$h and Obama) to use our taxpayer dollars to bail them out and save their sorry behinds while the rest of us suffer from their actions. Keep in mind except for Lehman Brothers the big Wall Street investment banking houses and insurance companies have been bailed out using our money. Smaller less politically connected banks caught in the violent undertow of the financial collapse are failing and aren’t getting bailed out except for being in FDIC receivership.The number of failing US banks will continue to escalate just as AmeriKKKa’s debt and fiscal red ink will continue to rise as a result of the malfeasance, corruption and criminality of the international bankers and their government consorts. Things are so bad even the International Monetary Fund has issued frightening warnings about the US and global financial predicament. “As the global economic downturn grows worse and confidence in the financial system continues to erode, the International Monetary Fund (IMF) is warning that banks and other financial institutions could face losses of $4.1 trillion at the close of 2010. In its global financial security report, the IMF estimates that financial companies could write down an estimated $2.7 trillion in loans and securities that originated in the U.S. Between 2007 and 2010. That's up from the fund's $2.2 trillion estimate made in January, and $1.4 trillion in October. According to the report, the financial crisis is ‘likely to be deep and long lasting,’ noting that financial stability has evaporated since the October 2008 report, especially in emerging markets. The IMF also doubled recent market bullishness, noting that ‘some improvements in short-term liquidity conditions and the opening of some term funding markets, other measures of instability have deteriorated to record or near-record levels.’” $4.1 Trillion in Bank Losses Possible by 2010 By Ian Cooper- Wealth Daily independent Investment Analysis and CommentaryWe will keep you abreast of the consequences of the financial oligarches’ shenanigans and explain how it will impact us. But in the meantime don’t panic or become discouraged; we can be in this system but not of it. Place your faith in a greater power than your 401K or pension fund; commit yourself to elevating your consciousness, living in integrity to your divine nature and you will thrive amidst the crisis that is coming.-30-
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