The REAL clunkers...........from Rico

The failure of Colonial Bank is hardly news, although it is the largest bank failure since the largest of all bank failures to date (Washington Mutual), last year. Four other 'smaller' banks were also closed.
- Remember this number: Colonial is expected to 'cost' the FDIC $2.8 bn!

Neither is the failure of 77 banks year-to-date vs. 25 banks last year vs. 3 banks in 2007 "news"...no story here. Move along folks. Nothing to see.

The REAL news (which is NOT being reported, and the Beard and TurboTax Timmy DON'T want you to understand) is that the FDIC is estimating that bank failures will 'cost' it about $70 bn by 2013.
- OK, we already know how accurate government 'estimates' are.
- If (see the number above) Colonial 'cost' the FDIC almost three billion and the other smaller four banks presumably less...Q: how many bank failures YET TO HAPPEN does this suggest?
A: A whole lot more! [My guess is triple-digits...say 125? More?]
- By 2013. Note the date. We're not quite into 2010 yet.

I guess when 'they' tell us things have turned around, the recession is over, blah-blah-blah you can believe them. C'mon, REALLY. Would the gooberment lie to you?

I am now convinced that the much-hyped "cash for clunkers" was just another distraction to keep us from noticing that our financial system is the real 'clunker' and things are just a bit worse than anyone will fess up to.


UPDATE:

Well, THAT was FAST!!!

I stand corrected.

I'm told that in private conversations the FDIC Chairman Sheila Bair thinks 500 banks will fail. My 'source' says this number is quite low, that the number of failures yet to come could be nearer 1,000.
- Bankruptcy for the FDIC?

Apparently the little banks are dropping like flies.

Gee, who knew?
- I guess any investment advice would have to be: lead (ammo), then gold, then silver in that scenario.