Jul
31
FDIC Friday: 106 Bank Failures in 2010
From Marketwatch:
Two bank closures in Florida on Friday brought the total number U.S. failures for the year to 106.
Keep in mind that “extend and pretend” is very likely being used to keep a large number of banks in business which would otherwise be shut down. The FDIC long ago ran out of any reserves of money, and so they kind of limp along week after week, shutting only those banks they can afford to at the moment.
If things were allowed to take their normal course, a lot of banks would drop in a matter of days – that would allow us to start to rebuild, but it would also shock the economy and the financial sector, thus leading to bad vibes for Democrats in November – and thus this is not allowed to happen.
Of course, the problem is still there – and the longer it goes on, the worse it gets…
