Link for embed failures. Via CR.
They don’t ask how small a run on the banking system may be needed to make it collapse completely, they don’t mention that at the current rate of more than 2 bank failures a week we’ll see over 100 this year, up from 25 total last year (though taken to the stratosphere when counted by dollar value of assets in failed institutions of ought-eight). They do mention the FDIC is totally afraid of the three large banks, saying they need to be regulated to not get so big they would cause nation-wide economic chaos were they to collapse (witness the Lehman fallout). They don’t mention how the FDIC has something between $60 and 200 billion left to Failout banks with, and that the banking system has a total of $6 trillion on deposit, $4 trillion or so insured. In contrast to these huge numbers we’ve seen lately, the economic stimulus and bailout we’ve seen so far amounts to maybe 10% of the wealth we’ve seen destroyed by the market and housing crashes, and the bailout is already a trillion or more dollars in total, with trillion or two in deficit in the barrel in the next year alone, and who knows what’s going to explode next. Is it going to be another huge institution that’s going to cause a springtime Red October (the 25% drop of last October) or is it going to be another Madoff, or maybe even some scam more audacious? I mean, a year ago people were preaching the “9th inning, to use a baseball metaphor.” Does anyone believe people saying now “don’t worry, recovery is right around the corner?”
Tags: depression 2.0