No money left to insure your deposits. Do what you must to protect your assets.

http://www.zerohedge.com/article/fdic-discloses-deposit-insurance-fund-now-negative

Everybody run to  the bank and pull all your funds. Let's get this party started.

Huzzah!

Pfftt, just print more money.

No biggie...

... on my way to the survival forum.

Buy:

Gold
Silver
Copper
Lead
Brass

Jesus ...Dad was right all these years...hope I get the map to his backyard when he's gone

How come we don't have a panic smilie?

Your thread title and comments are factually incorrect.  The balance is only negative due to provisioning.

Of course. The sky has really and truly fallen this time.

I think.

Hmmm.

Here toy go........



 

Yeah, moreso.  With about $10 bil in the account, they've got about $15 bil to pay out.  A 50% shortfall, or about $5 bil.

They have multiple ways of getting more money, and they'll pick something.  The fat lady has such a beautiful voice; it would be a shame to silence her before the song is over.

Do NOT worry !!  The .gov is just going to make the (perhaps) solvent banks pay a few billion ahead.
5sub

Hmmm... in with my first "and so it begins"...  

This.

Wake me up when this gets worse than Y2K

Will this be worse than Y2K?



ETA, damn beat again!

Damn, where's the PMAG gif when you need it?

and still that stuff is only worth something if someone is willing to buy it.  During katrina food and water was king

Better late than never!  

FDIC is asking banks to pay their insurance fee 3 years in advance, moving the balance from 10 to 45 billion IIRC.

They were saying earlier today on the news that your deposits are still safe.

I can't find the story on any other news site.  Hmmm......

hehe,  even lootie was wealthy in those times

Lead is the only one of those that is going to to the average guy any good, assuming it's in the form of ingots.

Time to pull out all of the cash and buy gold and ammo.

Lead is plenty valuable if you have bullet molds, although you need some tin and antimony to go with it.

Fixed it for you.

Step right up, step right up!  Getcher FDIC insurance now!  One year's protection for the price of three!  Get it while it's hot!

ETA: These are the guys they want to pay three years in advance:

The Market Ticker

The Banking System Is Insolvent

Following up on the quick mention now that I have a story to cite from Amherst:

   Cure rates for these distressed loans remain low. Amherst noted a near 0% cure rate of all loans in foreclosure, 0.8% for 90 plus days delinquent, 4.4% for 60 days delinquent and 26.5% for 30-day delinquencies. All told, Amherst expects 12.42% of units (from the 13.54% of properties delinquent and in foreclosure) to eventually liquidate.

Let's put some numbers on this.

There are roughly 125 million single-family homes in the US.

Of those, roughly 30% have no mortgage on them at all.  This leaves 87.5 million single-family homes with mortgages.

Let us assume the average outstanding balance is $200,000 across the entire set and will take a 40% loss severity.  This is less than S&P has estimated for subprime loans and only assumes a roughly 20% market deficiency in the home price (the rest is from legal, rehabilitation and marketing expenses.)

These numbers are, with a high degree of confidence (90%+) low - that is, losses will exceed these estimates, perhaps dramatically so.  It is, for example, quite reasonable to believe that due to the concentration of defaults in higher-priced areas (e.g. California and Florida) that the average outstanding balance could be close to double that $200,000 value and the loss due to negative equity higher.

From this we can develop a "cocktail napkin" view of the losses to be taken in home mortgages for single-family homes (remember, this does not include condos, apartment buildings and similar "commercial" paper.)

$200,000 X 40% = $80,000 loss per foreclosure.

87.5 million homes with mortgages X 12.42% = 10,867,500 foreclosures.

10,867,500
x    80,000
=============
$869,400,000,000

or $869 billion in losses remaining in single-family mortgages alone.

What if the average outstanding is higher and negative equity greater than 20% (which is likely)?  Losses will almost certainly be well north of a trillion dollars.

The entire banking system and likely The Fed, given the quantity of Fannie and Freddie paper it has been and is "eating", is insolvent.  These facts are why the government is lying - they're well-aware of the near-zero cure rates and know that these facts mean that the banking industry has nowhere near sufficient capital to withstand these losses without folding like a paper cup getting stomped on by an elephant.

(Remember that these numbers do not include any commercial real estate losses and we have found that banks are frequently over-stating their claimed values for these loans by 50% or more - as was seen with Colonial.)

It gets better.  The FDIC has a negative balance both in its fund balance and the reserve ratio projected for the end of the quarter, which is, big surprise, tomorrow. Oh, and there is this pesky problem that the FDIC has - contrary to its mandate - been issuing bond guarantees for banks, so if and when that banking insolvency is recognized the FDIC will implode into a gravity well also, since it is on the hook for the entire deficiency of those bonds that were issued with its "guarantee" should they default.

Care to argue with the math folks?

I saw that too.  It made me chortle.

Screw the lead, bullets or ammo.

I'll take food and water, as much as I can pack into my house.

+1, this is what they will do, simply "inject" more funds into the system.  Problem solved (for now)....

They will continue to kick the can down the street a little further for as many kicks as they are able to muster.

FIXED

The FDIC insurance prepay is suppose to raise 36 billion.
So the FDIC jacks up fees, and banks jack up fees like overdraft and others.
95 banks tits up this year... so far. The troubled list is growing.
In August, FDIC wanted Treasury help and also talked about borrowing money from banks.
Wait... borrow money from banks?
Sounds like another round of bailouts is coming.
But zero and his minions say everything is lovely. Rainbows and cotton candy clouds.

Cool.  Lets spend more then.

They would say that regardless of whether it were true or not.

I'm not saying it's not true, but they'd be saying everything was fine even as it burned down around them.

FDIC bankrupt no   they will print trillions more and we will go broke long before they do

The FDIC ran out of money two months ago. They finally made it official.

When you lost 1 to 10 billions every week for the last 52 weeks you're going to go bankrupt sooner or later. There is no 500 billion credit line. Due to the debt limit there won't be any help from the government. That is why they want to get the three year advance from the banks. The problem is most banks can't afford it. They are insolvent.

They aren't closing nearly enough banks each week like they use to because they do not have the money to cover the deposit. What these means is the longer they wait to close these bank banks the more the FDIC will lose. It is a classic catch-22 with the depositor getting screwed.

if you live in a border town, now would be a nice time to open up a few bank accounts in Canada.  

banking system there is far more stable than our own.

open a U.S. dollar denominated account, as well as a Canadian dollar account.

Food. Lots, in bulk.

Why do you think I converted my cash into valuable durable goods

It'll work fine until hyper inflation rapes the hell out of us.

This is actually starting to get scary

How the hell can they do that? What if the bank goes out of business?

Wrong order because if the SHTF bad enough gold and silver will be worth shit

Would you say this is SHTF type shit of TEOTWAWKI?

On a serious note, when it all hits the fan, what will our banking/financial system look like?