Categories

Login Status

You are not logged in.

Polls

Is Facebook overvalued at $40/share?

View Results

Loading ... Loading ...

Calendar

July 2017
M T W T F S S
« Oct    
 12
3456789
10111213141516
17181920212223
24252627282930
31  

FDIC Truth, you can’t handle the truth!

Consider this, BAC over 1.5 Trillion in assets, FDIC able to cover less than 1.3% of those.   

“Those losses have depleted the FDIC’s insurance fund, which is used to pay off depositors when an institution goes under. The fund was reduced to $10.4 billion at the end of June, the agency said Thursday, down from $13 billion at the end of March.”

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/28/AR2009082803684.html

             We only had 84 bank failures this year yet the FDIC reserves are the lowest sense 1992.  Worst, all the banks that are too big to fail are still within the system and now being supported with taxpayer’s money.  These banks are still giving out millions in bonuses to non deserving employees.  The biggest bank failure this year has been Colonial Bank, a REGIONAL bank in Alabama.  But if you really want to keep reality in perspective, consider the fact that many National Banks are technically insolvent and only operating because of the trillion dollar unlimited government bailout.

                The biggest too big to fail bank, Bank of America, financial documents are a joke.  They hold worthless assets not only generated by the original BAC, but also Countrywide Financials and Meryl.  BAC for example has 1.47 TRILLION in long term assets.  If you examine their balance sheet, you can see that this is an increase of over 300 billion increase from December 2008 quarter to the first quarter 2009.  At the same time, their short term investment decreased by over 200 billion.  Any amount of common sense however will tell you that this book seems cooked.  How can a company be growing by so many billions when the economy is decreasing, foreclosures is happening, and customers have decreased by over 50%.

                Unfortunately, auditing the Bank of America book would be a complete nightmare.  You would probably need thousands of auditors paying close attention to detail to fully be able to understand what is in the book and if the value given is even accurate.   But using common sense, mortgages values dropped by 50%, many of those CDOs were leveraged 30 to 1, so a 3% drop in price would of completely wiped out all the money invested in mortgages.  We have experienced a situation 10 Times worst than the scenario required to wipe out the mortgage industry.

                Our opinion is that this Enron accounting practices now legitimized by government will end in a total global economic collapse.  The collapse is Just a matter of time, not if it will happen but when.  You cannot have multiple companies with cooked books that are too big to fail remain alive when you have a cheating parasite like Goldman Sachs sucking away the wealth of the system.  Something is going to die, the host or the parasite.  But one thing is crystal clear; the FDIC can barely handle the regional bank failures, so it takes only 1 national bank failure to collapse our fragile, fraudulent, corrupt system.

This content is restricted to site members. If you are an existing user, please login. New users may register below.

Existing Users Log In
 Remember Me  
New User Registration
*Required field

Comments