Ke nobi
/ 83.5.208.* / 2009-08-05 08:48
Five more U.S. banks failed this week, while a separate report warned that a large, Texas-based bank with “negative capital” would be next. With 69 failed banks already this year, bank failures are already on course to exceed the number of failures in 2008 by 400%.
However, if they continue accelerating, that increase could easily rise to 500% or 600%.
Meanwhile, despite raising the size of its bribes to take over these failed companies, the FDIC is seeing less bidders step up to bid on these companies. It's “insurance fund” will be nearly completely exhausted when the pending failure of Texas-based Guaranty Bank (GBNK) takes place – forcing it to tap into a $200 billion “line of credit” from the insolvent U.S. Treasury.
Does this sound like an economy which is “recovering”?
If the U.S. housing sector is actually “stabilizing”, as the propagandists assure us, why are bank failures accelerating? Why aren't other banks fighting over the chance of taking over these “distressed assets”, in anticipation of the “economic turn-around” which they continue to tell us is taking place?