What is Digg?112 Comments
- inactive, on 08/27/2008, -1/+47Reminds me of robbing Peter to pay Paul. I think we can all presume the government is broke on many different levels.
- zyklon, on 08/27/2008, -1/+23And so it begins...
- StingingNettle, on 08/27/2008, -0/+21Fromt todays 5min: http://www.agorafinancial.com/5min/consumer-debt-f ...
If you’d like to make a “problem list” of your own, here’s how the FDIC does it:
C — Capital
A — Assets
M — Management
E — Earnings
L — Liquidity
S — Sensitivity to risk
The bigwigs at the FDIC rate each letter with a score of 1-5, 5 being the worst. If the average score is 4 or higher, you’re on the list. Yes, it really is that simple.
and
“More banks will come on the list as credit problems worsen, and assets of problem institutions will continue to rise," said FDIC head honcho Sheila Bair. The FDIC mentioned that, historically, 13% of those on the list end up failing. Should that be true, about 15 more banks will bite the dust, atop the nine already resting in peace. Remember IndyMac — the biggest bust this year — wasn’t even on the list. - UtahApocalyse, on 08/27/2008, -0/+18I wish I could print money when I need it.
- howdareyou, on 08/27/2008, -0/+17Whoops! Remember that $600 in cash we gave ya'll? Well it looks like we're gonna need it back.
- inactive, on 08/27/2008, -0/+16Can't say I'm surprised...a lot of Americans do this to cover their debts, too. Credit card after credit card to pay off their CREDIT CARDS. The madness will never end....get out while you still can.
- stubarwick, on 08/27/2008, -0/+15I'm no economist... but I'm pretty sure this is a bad thing
- Joe_rigby, on 08/27/2008, -1/+16Sooo .. We're ***** long-term?
- trer, on 08/27/2008, -0/+15Heck, why not go straight to the source and ask each and every American to donate $100 to the Federal Government?
- portableteejay, on 08/27/2008, -1/+16HOORAY, we're *****.
- TexanRudeBoy, on 08/27/2008, -1/+16The FDIC insures deposits, but it doesn't have anywhere near enough funds to cover everything they've "insured". Its no different than a normal bank's fractional reserve. The entire system is completely and inherently insolvent. If enough member banks fail it would be no different than if consumers made a bank run on their banks. The money isn't there. The only answer they could have would be to "print" enough to cover everything that's insured. Hyperinflation here we come.
- KSUdesigner, on 08/27/2008, -1/+15They do, they just call it "taxes" instead of "donations."
- jmcorro, on 08/27/2008, -0/+12Sorry, zyklon....this began a long time ago.
- zeusthemoose, on 08/27/2008, -0/+11But "taxes" are meant to be used to provide you with vital services such as roads, emergency rescue, safety from other countries with military etc. Taxes are not meant to be a source of cash flow to bail out failing businesses. I have a better idea. Lets simply take away all assets of these filthy rich CEO's and the board of directors. That way, we would be able to pay off all the money they owe no problem.
- odigity, on 08/27/2008, -4/+14Obama is no different. They will both maintain the same policies. Everything else is just marketing and spin.
There are more than two choices. - bizzywho, on 08/27/2008, -4/+13Hmmm...remember how Ron Paul predicted the Russian and Georgia conflict back in 2002?: http://www.youtube.com/watch?v=zFl6Aq4ZJVo
Look at the first line of the third paragraph of what Ron Paul said back in 2005 about deposit insurance: http://www.lewrockwell.com/paul/paul289.html
Seriously, is Ron Paul the only politician who looks at the facts? - Rekutyn, on 08/27/2008, -0/+9"Noncurrent loans are still rising sharply. The amount of noncurrent loans and leases (90 days or more past due or in nonaccrual status) increased by $26.7 billion (20 percent) during the second quarter, following a $26.2 billion increase in the first quarter and a $27.0 billion increase in the fourth quarter of 2007. Almost 90 percent of the increase in noncurrent loans and leases in the last three quarters consisted of real estate loans, but noncurrent levels have been rising in all major loan categories. At the end of June, 2.04 percent of all loans and leases were noncurrent, the highest level for the industry since 1993."
Just got that from the FDIC today. Over-due loans are up 20% in the last QUARTER. That's ~80% annualized (actually more when you take into account the compounding effect).
And here's another (more technical) snippet, related to this story:
"The FDIC's Deposit Insurance Fund reserve ratio fell. Due to a significant increase in loss reserves, including reserves for failures that have occurred since June 30th, the DIF balance fell to $45.2 billion at the end of the second quarter, down from $52.8 billion at the end of the first quarter. While insured deposits rose only 0.5 percent during the quarter, the decline in the fund balance caused the reserve ratio to fall to 1.01 percent as of June 30th from 1.19 percent one quarter earlier. Because the reserve ratio is now below 1.15 percent, the Federal Deposit Insurance Reform Act of 2005 requires the FDIC to develop a restoration plan that will raise the reserve ratio to no less than 1.15 percent within five years."
So, I guess their plan is to recover from their insurmountable losses due to debt with more debt. - gaqua, on 08/27/2008, -1/+10Time to start stockpiling canned goods and shotgun shells I guess.
My friend with the bunker designed for the Y2K apocalypse will probably let me stay there, at least. - kronzdigg, on 08/27/2008, -1/+9They have 1.04% of the funds necessary to cover all the deposits. Read that on their website last night. They want a "safe" 1.15% UNBELIEVABLE.
- lulzitsadigg, on 08/27/2008, -0/+8Maybe they can borrow it from Iraq.. I heard they had a big budget surplus.
- inactive, on 08/27/2008, -0/+8And the Treasury will get the money by borrowing from who?
Probably by borrowing money from the Fed, So we will inflate the currency and take on further debt at the same time that we make the bankers richer. - Good idea! - realestateloop, on 08/27/2008, -1/+8lets just ask China for some more money!! :^P
- hwy9nightkid, on 08/27/2008, -1/+8then why are the small towners the ones closing shop?
- buba1243, on 08/27/2008, -0/+7Why not use credit cards to get out of debt when you can get 0% interest for a year then roll it over to another one for another year. The only problem is when you start to not be able to get more credit cards.
- hugolp, on 08/27/2008, -0/+7I may need to borrow from the treasury as well. I guess thats not a problem neither.
- inactive, on 08/27/2008, -0/+7Yes. And the ones being robbed are the current crop of American Taxpayers. All of those FILTHY THIEVES need to be in prison. Who's going to reopen Alcatraz to house the FILTH???
- StopTheLie, on 08/27/2008, -0/+6"So what happens when the FDIC needs money to cover depositor’s losses? The government must borrow it. So it sells more I.O.U.’s (treasury securities) and whatever the public doesn’t buy, the Federal Reserve agrees to purchase. But the Fed has no money either…no problem. Whatever the Fed needs to buy the bonds will simply be “created out of thin air” and presto: the FDIC is now funded. The newly created money floods into the economy, the purchasing power of our currency goes down, and through the hidden tax of inflation we all pay the price. Isn’t this fun?"
http://joeplummer.com/chapter_2_something_for_noth ... - T8erT0T, on 08/27/2008, -0/+6Too late, I bought a ps3 with it. But the good thing it's heavy enough to tie my ankle too and sink to the bottom of the ocean when I finally decided I lost all faith in America.
- anachronaut, on 08/27/2008, -1/+6Just don't tell that to Joe "Big Banking" Biden. Don't get me wrong -- I strongly dislike and would never in a million years vote for McCain or what he's currently representing, but the hard truth is that Obama's VP Biden is much more closely tied to the banking industry than McCain.
I do like Biden's tendency to speak his mind even when it's not necessarily politically expedient, but on the other hand his close ties to the MAFIAA, big banking, etc., worry me a great deal. - craftyguy, on 08/27/2008, -0/+5Pshh, they'd create a new tax to pay for renovating Alcatraz.
How about learning a little from China and putting a bullet in them, and sending the bill to their families instead of using tax money to purchase the bullets? - enantiodromia, on 08/27/2008, -0/+5The economy is fine! Thriving even. Don't worry your pretty little head, America.
btw, i am running for president. i think i have a decent chance! - cohortq, on 08/27/2008, -0/+5FDIC Friday's!!
They're coming soon! - BetterOffEd, on 08/27/2008, -0/+4*paid
- zyklon, on 08/27/2008, -0/+4The only people that do that are foolish. They don't think of the interest rates, only temporary satisfaction. It works a little like the Federal Reserve though...
- nontoxyc, on 08/28/2008, -1/+5Banks are scams
- macman2k, on 08/28/2008, -0/+4Be sure to include a nice wad of cash with your letter otherwise they will ignore it.
- thealsir, on 08/28/2008, -0/+4I would digg you up 100 times if I could.
- zyklon, on 08/27/2008, -0/+4So, what will be the straw that breaks the camel's back?
But seriously, which bank will be the one to just topple the whole thing and spin us into a very real, very deep depression? It's really just a matter of time now. - yaddayaddayoda, on 08/27/2008, -0/+4Got news for you... it's not just the right side of the aisle.
- BetterOffEd, on 08/27/2008, -0/+4This is gonna do *wonders* for the value of the dollar.
- kronzdigg, on 08/27/2008, -0/+3ANOTHER HUGE TAX!!! Borrow, right! who will pay it back? YOU and ME
- AndrewMoyer, on 08/27/2008, -0/+3Cut up your credit cards all you want, you can't do ***** about it when the banks themselves are irresponsible spenders. Except, you know, watch inflation skyrocket and your savings and equity evaporate.
I wonder if any of these banks are going to be paying off John McCain this time? - Carnage6669, on 08/27/2008, -0/+3sounds kinda funny.... hasn't it always been the other way around?
- SkippyDoorknob, on 08/27/2008, -2/+5PANIC!!!
- BESTenemy, on 08/27/2008, -1/+4So, they've finally linked the printing press directly to deposit insurance. At this rate the FED will run out of treasuries in less than a year (as they are a part of the FDIC bailout deal). The bad thing is that it will boost the monetary inflation (not to be confused with net credit+cash inflation). The good thing is that the process will drain the treasuries directly from the FED. It'll wipe their balance sheet and make the organization completely irrelevant. Some say the FED and the treasury are already in that position.
Insuring deposits with money that doesn't exists is a dead end solution. But then again, our military, our medicare, our social services all get the money from the same source. Nobody knows how long it will be before the government officially defaults.
Right now the growth in fiat is counter-balanced by the evaporation of asset values. Once the writedowns stop and the assets are all marked to market, the momentum of money printing will deliver the final blow. The house of cards might just collapse overnight.
Short term safe haven - treasuries. Long term safe haven - precious metals. - jodes440, on 08/28/2008, -0/+3Basically, yea, we're in big ***** trouble.
- ready4orbit, on 08/27/2008, -0/+3The picture with that story is priceless!
"So about that $45.2 billion I had mentioned before..." - Jes1FromFL, on 08/27/2008, -3/+6Vote Ron Paul and end this madness.
- odigity, on 08/27/2008, -1/+4I did. And I will.
- Hangly, on 08/28/2008, -0/+2*wad of gold
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