More on the FDIC
As I mentioned in an earlier post the FDIC has seen its reserves dwindle under the weight of this year’s bank failures. Well, the day of reckoning has come, according to The New York Times, who reports that the Federal Deposit Insurance Corporation will fall into deficit this week.
The speed with which the FDIC has eaten through its $50 Billion slush fund should alarm, but after three successive Trillion-dollar bailouts, mere billions fail to awe. Rank-and-file depositors probably have no reason to worry, however – the missing cash will most likely be “borrowed” (at no interest) from the Treasury or from our bailout-bloated mega-banks, in a maneuver only one step removed from simply printing more cash.
Our federal balance sheet has already loosed from any anchor to reality it may have once had, so, the argument goes, what’s a few billion more? But take this as an indication that the glut of bank failures, far from slowing amid last year’s bailouts, has continued at a steady clip.