The number of banks on the FDIC “troubled bank” list has grown by more than one-third in just the past 90 days. According to information released today, the FDIC has increased the number banks at risk of failure to 416, the highest number in 15 years.
In a blog post I did less than two weeks ago I pointed out the mounting potential for looses faced by the government’s bank guarantee fund. With combined assets of almost 1/3 of a trillion dollars, the failure of a significant number of these troubled banks could wipe out the reserves of the Deposit Insurance Fund.
What these numbers represent is the continuing instability of the U.S. economy; there are just too many negative indicators to think otherwise. In a blog post from last Saturday, I pointed out 7 continuing reasons for concern.
Wall Street, the big banks, and politicians might prefer that we ignore the fundamentals, but common sense and prudence dictates otherwise.
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