FDIC hits NEGATIVE 20.9 Billion

[redrumloa]

http://dailypaul.com/node/126889

The U.S. banking industry continued to struggle in the fourth quarter, as the number of banks on the brink of failure continued
to rise and the government's fund to protect deposits fell sharply into the red.

The Federal Deposit Insurance Corp. said Tuesday that its deposit-insurance fund fell to $20.9 billion at the end of 2009, a $12.6 billion drop in the final three months of the year, as bank failures continued at a pace not seen since the savings and loan crisis. The fund's reserve ratio was -0.39% at the end of the quarter, the lowest on record for the combined bank and thrift fund.

Anyone like Obama who says the recession is over is either a liar or an idiot.

 

[FluffyMcDeath]

Speaking of where things are going and the FDIC:

There are some perverse incentives built into what the FDIC has been doing. The whole Obama mortgage renegotiation stuff is dead dead dead because the FDIC is making it more profitable to foreclose or short sell than negotiate to avoid a heavier loss.

Check out this video for an example of how mortgage holders can benefit from pulling the plug on a mortgage.