According to the Federal Deposit Insurance Corp. Atlanta's Georgian Bank is the 95th bank to fail in 2009 and the eighth biggest failure this year.
To give you an idea of the scope of the current deflation hammering banks here is a list of bank failures since 2000:
2009 - 95 bank failures
2008 - 26
2007 - 3
2006 - 0
2005 - 0
2004 - 4
2003 - 2
2002 - 11
2001 - 04
2000 - 02
The total bank failures for 2008 + 2009 is 121!! From 2000 to 2007 there were only 26 banks that failed.
Wow!
The cost of Georgian Bank's failure to FDIC's deposit-insurance fund is $892 million, whose balance has hit a 17-year low of $10 billion as of this summer. Given that there is more deflation to come the FDIC will find it necessary to go to the U.S. Treasury and borrow from its $500 billion credit line. The question is will that be enough?
That's why we recommend you get Conquer the Crash, by Robert Prechter, because it comes with a "vital supplement to its still-prescient original content." Included with each book is a brand new CD-ROM addition that has lists for:
- The Two Highest-Rated Banks in each of the 50 U.S. states
- The Highest-Rated Large Banks in America
- The Largest Treasury-Only Money Market Funds
- The Highest-Rated U.S. Insurers
Back in 1802 Thomas Jefferson said 'I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.' Certainly very topical for what's happening today.
So if you want to find out whether your bank is next on the 'failure' list order your copy today!
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