We all remember the media claiming the sky was falling during the Bush presidency, yet since Barack Obama got elected our journalist friends have bent over backward to paint a rosy picture of a country in crisis. Whether this is because of the leftist tilt of the media or an attempt to prevent the urban apocalypse a collapse of the dollar would cause is an argument that ultimately doesn’t matter. What does matter is that you see these ten economic facts and understand what they mean to you and your family.
Then you can decide why this information is downplayed by the media.
10. There are at least 884 “problem” banks on the FDIC books.
The FDIC problem bank list has continued to grow even as the media claims the the economy is improving. As of December 2010, “problem banks’ made up 12% of all the FDIC insured institutions. That doesn’t count the failed banks for which the FDIC is already on the hook. In 2010 a total of 157 FDIC insured banks failed with combined total assets of $96,514,000,000. The FDIC, when all was said and done, lost “only” $22,355,300,000 to their Deposit Insurance Fund.
Of course this year we’re on course to surpass those numbers. At the end of February the FDIC listed 29 failed banks. If the increase in “troubled” banks represents actual risk of failure than it stands to reason that we’ll see a steady increase in bank failures which the FDIC insures. What does that mean to you? Simple, your money isn’t safe.
A year ago it was known that the FDIC was running out of money. Back in 2009, even Bloomberg couldn’t avoid reporting FDIC chair Shelia Bair’s call for increased taxpayer funding because of the FDIC’s dire financial straits. The FDIC is operating in the red and relying on the federal government to keep it afloat, which means using our tax money. That makes their recent announcement that they are extending their non-interest bearing checking account deposit insurance from $250,000 to infinity all the more transparent. Bair is desperate to make you keep money in the bank because the FDIC can’t afford a bank run.
So where are the talking heads telling you to protect your savings? If you keep more than $100,000 in any one bank you’re setting yourself up for a shock when the FDIC finally admits they can’t cover everyone. One bank run is all it will take to wipe out the FDIC, millions of Americans’ savings, and the illusion perpetrated by the leftist media that the government can protect your money.
By the way, Sheila Bair was the subject of an investigation by the FDIC Inspector General over her role in forcing large banking firms to donate tens of millions of dollars to a Chicago bank that ultimately failed. Fox Business has a copy of the letter the IG sent to the Financial Services Committee. If you want to really lose faith in the Bair led FDIC, look no further than the Shorebank scandal.