“Government Thievery” the Obama-Congress Oligarchy

Your Bank Deposits are Now at Risk!

While the health care debate wails on with subversive Marxist-Alinski-Obama tactics the government institutions that are suppose to protect Americans from something like oh say, losing your bank deposits  has become a reality!

The FDIC is out of money!

With the most recent bank failure of  Colonial Banc Group Inc., the FDIC lost $2.8 billion.  The FDIC has set aside $25 billion for future bank failures but what about the funds deposited by everyday Americans?  In reality the total FDIC amount remaining as of today is a balance of $648.1 million.

Remember government to the rescue?  Raising from $100,000 to $250,000 per account until January 1st 2014 that change increases the deposits covered under FDIC insurance to approximately $6 trillion.

Again government feel good measures with no common sense or dose of reality has created a false sense security just as with the health care proposal, the money isn’t there for it no matter how bad they want to promise they can’t perform.  Government politicians are lying, the economy is sinking the financial end is near, just one more straw on the camel’s back and the financial house of cards falls.  Just as with the crash of 1929 there was no money in the banks to give back to Americans who deposited them!

With this dismal government track record, in these distressing financial times Comrade President Obama wants to get his hands on cash the Nationalized health care initiative he is putting forward will create another barrel of dollars the political liberals can spend then spend again before they are caught borrowing to spending it again.  The truth is government is running out of money and one-seventh of the economy’s health care spending is the new social security trust fund to pilfer, once they get their grimy hands on it.

To sum up the great job the government has done in protecting Americans from themselves instead of the Constitutional requirements to keep government limited, the Republican and Democratic liberals  have created the following problems for America through large unregulated government institutions.

The Seen and the Unseen

• Looming taxpayer bailouts of the FDIC
• Taxpayer bailouts of failed banks
• Taxpayer bailouts of mortgage reductions to keep people in their homes
• Rising property taxes because of increased speculation
• The FDIC’s role in the housing boom and bust
• Fraud costs
• Investigatory costs
• Stock market crash
• Cost to pension plans dumb enough to buy debt in failed banks simply because they were “growing”

The 74 bank failures nationwide this year compare with 25 last year and three in 2007.

As the economy has soured – with unemployment rising, home prices tumbling and loan defaults soaring – bank failures have cascaded and sapped billions out of the deposit insurance fund. It now stands at its lowest level since 1993, $13 billion as of the first quarter.

While losses on home mortgages may be leveling off, delinquencies on commercial real estate loans remain a hot spot of potential trouble, FDIC officials say. If the recession deepens, defaults on the high-risk loans could spike. Many regional banks hold large numbers of them.

The number of banks on the FDIC’s list of problem institutions leaped to 305 in the first quarter – the highest number since 1994 during the savings and loan crisis – from 252 in the fourth quarter. The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.

Colonial BancGroup Inc., the Alabama lender facing a criminal probe, had its banking operations closed by regulators and taken over by BB&T Corp. in the biggest bank failure since Washington Mutual Inc. collapsed last year.

Branches and deposits of Colonial, Alabama’s second-largest bank, were turned over to Winston-Salem, North Carolina-based BB&T in a deal brokered by the Federal Deposit Insurance Corp., the regulator said today. The failure of Montgomery-based Colonial followed a Florida expansion that saddled the lender with more than $1.7 billion in soured real-estate loans.

Colonial’s failure will deplete the FDIC’s deposit insurance fund by $2.8 billion, the agency said. The fund, which the agency uses to pay customers of a failed bank for deposit losses up to a $250,000 limit and is generated by fees paid by banks, stood at $13 billion at the end of the first quarter, according to the FDIC. The agency has set aside an additional $25 billion for bank failures, agency spokesman David Barr said.