Posted on Monday, August 31, 2009
We've been saying since day one that government needs to be saving for a rainy day. Yes giving folks cash to buy new cars may help make consumer spending stats look better. But keeping our banking system afloat is certainly more important.
The FDIC has only about 10 billion left of the $50 billion or so it had last year and still a whopping 416 banks remain on its watch list. The agency says it earned $16 billion during the first 6 months of 2009 and $7 billion in fees from banks but will this be enough to foot the bill?
So far 109 banks have failed since Jan 2008.