fordguy61mi Posted March 5, 2009 Share Posted March 5, 2009 The whole country is swirling down the shitter and it's not gonna be an easy ride. I'm going to polish up my tin cup for street begging. http://news.yahoo.com/s/afp/20090305/pl_af...nkinggovernment WASHINGTON (AFP) – The US government is warning banks that its deposit insurance fund could go broke this year as bank failures mount. The head of the Federal Deposit Insurance Corporation, Sheila Bair, in a letter to bank chief executives dated March 2, defended the FDIC's plan to raise fees on banks and assess an emergency fee to shore up the fund and maintain investor confidence. Bair acknowledged the new fees, announced Friday, would put additional pressure on banks at time of financial crisis and a deepening recession, but insisted they were critical to keep the insurance fund solvent and protect. "Without these assessments, the deposit insurance fund could become insolvent this year," Bair wrote. The FDIC chief said in the letter that the rapidly deteriorating economic conditions raised the prospects of "a large number" of bank failures through 2010. "Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative," she wrote. The FDIC last Friday announced it would impose a temporary emergency fee on lenders and raise its regular assessments to shore up the rapidly depleting deposit insurance fund that insures individual customer deposits up to 250,000 dollars. A week ago the FDIC reported a sharp depletion of the deposit insurance fund in the fourth quarter due to actual and anticipated bank failures, to 19 billion dollars from 34.6 billion in the third quarter. The FDIC said it had set aside an additional 22 billion dollars for estimated losses on failures anticipated in 2009. Quote Link to comment Share on other sites More sharing options...
boatbaby Posted March 5, 2009 Share Posted March 5, 2009 The whole country is swirling down the shitter and it's not gonna be an easy ride. I'm going to polish up my tin cup for street begging. http://news.yahoo.com/s/afp/20090305/pl_af...nkinggovernment WASHINGTON (AFP) – The US government is warning banks that its deposit insurance fund could go broke this year as bank failures mount. The head of the Federal Deposit Insurance Corporation, Sheila Bair, in a letter to bank chief executives dated March 2, defended the FDIC's plan to raise fees on banks and assess an emergency fee to shore up the fund and maintain investor confidence. Bair acknowledged the new fees, announced Friday, would put additional pressure on banks at time of financial crisis and a deepening recession, but insisted they were critical to keep the insurance fund solvent and protect. "Without these assessments, the deposit insurance fund could become insolvent this year," Bair wrote. The FDIC chief said in the letter that the rapidly deteriorating economic conditions raised the prospects of "a large number" of bank failures through 2010. "Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative," she wrote. The FDIC last Friday announced it would impose a temporary emergency fee on lenders and raise its regular assessments to shore up the rapidly depleting deposit insurance fund that insures individual customer deposits up to 250,000 dollars. A week ago the FDIC reported a sharp depletion of the deposit insurance fund in the fourth quarter due to actual and anticipated bank failures, to 19 billion dollars from 34.6 billion in the third quarter. The FDIC said it had set aside an additional 22 billion dollars for estimated losses on failures anticipated in 2009. I heard this and it is just getting worse every day...down right scary. Maybe it is time to start stuffing your mattress with money or bury it in the back yard. If your bank goes under and the FDIC is broke, your bank just stole your money and you don't have a leg to stand on. When is it all going to stop spiraling down????? Quote Link to comment Share on other sites More sharing options...
fordguy61mi Posted March 6, 2009 Author Share Posted March 6, 2009 I wish we'd just hit bottom and be done with it and start working our way back up, but I don't think that's going to happen soon enough. Quote Link to comment Share on other sites More sharing options...
Spring Posted March 6, 2009 Share Posted March 6, 2009 How long before they start calling it what it is? A DEPRESSION! They were only 2 years too late on calling it a recession! Quote Link to comment Share on other sites More sharing options...
fmccap Posted March 6, 2009 Share Posted March 6, 2009 How long before they start calling it what it is? A DEPRESSION! They were only 2 years too late on calling it a recession! Actually heard it a few times on national programs. Maybe in a few years. Quote Link to comment Share on other sites More sharing options...
MTPwife Posted March 6, 2009 Share Posted March 6, 2009 Ok. well that scares the hell out of me. Would a credit union be at the same risk? Quote Link to comment Share on other sites More sharing options...
fordguy61mi Posted March 6, 2009 Author Share Posted March 6, 2009 I don't know but if people hear that announcement and start taking their money out of banks by the hoards, it could start a panic of unheard of proportions that could snowball into a depression not seen since the 30s. Lets pray that doesn't happen. Quote Link to comment Share on other sites More sharing options...
diecaster Posted March 6, 2009 Share Posted March 6, 2009 How long before they start calling it what it is? A DEPRESSION! They were only 2 years too late on calling it a recession! According to my economics instructor, that ford is paying for, a depression is when unemployment reaches 11%. Read the Detroit News tommorrow, Michigan unemployment is at 11.6% Quote Link to comment Share on other sites More sharing options...
Spring Posted March 6, 2009 Share Posted March 6, 2009 According to my economics instructor, that ford is paying for, a depression is when unemployment reaches 11%. Read the Detroit News tommorrow, Michigan unemployment is at 11.6% My point exactly! To quote a song from the last depression, "Brother, can you spare a dime"? Quote Link to comment Share on other sites More sharing options...
No1Eman Posted March 7, 2009 Share Posted March 7, 2009 I heard this and it is just getting worse every day...down right scary. Maybe it is time to start stuffing your mattress with money or bury it in the back yard. If your bank goes under and the FDIC is broke, your bank just stole your money and you don't have a leg to stand on. When is it all going to stop spiraling down????? Actually stuff your mattress with gold. At the rate they are printing money, you will need thousands to buy a loaf of bread in a couple of years. Quote Link to comment Share on other sites More sharing options...
ktp22 Posted March 7, 2009 Share Posted March 7, 2009 Actually stuff your mattress with gold. At the rate they are printing money, you will need thousands to buy a loaf of bread in a couple of years. forget gold, you can't eat gold. Stuff your mattress with wheat seed, you can make your own bread. Quote Link to comment Share on other sites More sharing options...
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