The funny thing about bubbles is that sooner or later they burst. Once again I…
Browsing: Federal Deposit Insurance Corporation
I realize I am not the only guy on this planet who reads the “news” as presented both in the newspapers and on the Internet. Even if I didn’t read the news, I’d get a good dose of what people are calling reality. That dose comes from the mix of clients our insurance agency serves. Lucky me…
Here are two sentences taken from two separate news stories:
“The coffers of the Federal Deposit Insurance Corp. have been so depleted by the epidemic of collapsing financial institutions that analysts warn it could sink into the red by the end of this year.” – AP
“Pending U.S. home sales rose more than expected in July to the highest level in more than two years as first-time buyers rushed to take advantage of a tax credit that expires this fall.” – AP
Is it me or are these two sentences sending conflicting messages. If it is me, I apologize upfront. However, I don’t think it is me.
According to published reports, so far this year, 81 banks have failed. Last year only 25 went down the toilet while in 2007, if you’re counting, only three went south. These same sources project hundreds of more banks are expected to fall. The primary reason given is due to souring loans for commercial real estate.
The following is a guest post by Hiland Doolittle:
In December, CIT Group received a $2.33 billion lifeline from the Troubled Asset Relief Program. CIT Group is one of the country’s largest lenders specializing in loans to small and mid-sized businesses. The struggling giant has applied to the Federal Deposit Insurance Corp for assistance under a program that guarantees newly issued debt.
The FDIC is reluctant to intervene. In strained meetings with the FDIC, The Treasury and The Federal Reserve, CIT’s financial instability has come under fire and poses a serious roadblock for a proposed bailout.
I would suppose every American has heard about the $700-billion financial bailout Washington shoved down…