America is just a few days away from a possible day of reckoning. I again call attention to this day, August 25, when the Federal Deposit Insurance Corporation issues its 2nd Quarter report for 2009 on the state of health of American banks.
A plethora of bank failures has depleted the FDIC reserve fund from $52.8 billion in 2008 to $13 billion in the 1st Quarter of 2009. (See chart below)



Alison Vekshin, writing for Bloomberg, indicates.
"The failure of 77 banks this year is draining the fund." Vekshin goes on to report that 56 bank failures since March 31 have cost the FDIC an estimated $16 billion. (For comparison, in the 1st Quarter, bank failures only cost the FDIC $2.2 billion.) That $16 billion bank rescue would fully deplete the FDIC fund as it only had $13 billion at the close of the 1stQuarter. It’s possible the FDIC has already tapped into its line of credit at the Treasury Department without setting off alarm bells to the public.

FDIC's $13 billion against $220 billion liabilities.
So just how much liability does the FDIC bear aggregately for its "problem banks?"At the end of the 1st Quarter in 2009 the FDIC said that figure was $220 billion. Remember now, the FDIC had only about $13 billion to over these institutions at the time. (See chart below) This figure will likely grow beyond imagination with the issuance of the FDIC 2ndQ report.


OK BUT WHAT DOES ALL THAT MEAN??

The mother of all bank runs?

Now if just a small portion of American bank depositors hear that the FDIC had to tap into the US Treasury for funds, and these depositors feel their banked money is at risk and want to withdraw some of it, the mother of all bank runs could ensue. This could create the day of reckoning that many have predicted. A short banking holiday would have to be declared and who knows what happens from there – troops in the streets, issuance of new currency, martial law? Don’t think those in the Federal government haven’t made plans for such an occurrence.

Please understand, im not showing you this article to spread fear..im sharing it for the information within it. This is serious.If any of you have significant money in the bank, PLEASE do yourself the favor of staying informed, through August 25th. When the FDIC releases its 2nd quarter report, which will tell us EXACTLY what sort of health the banks, and your insured deposits are in..I mean it, watch for this report, if you have significant savings in cash,in FDIC insured accounts..This is the TRUE source of all the Bank Run Rumors,Bank Holidays, and Martial Law threats, dont take it lightly, but dont panic. Yet.



"He who fights with monsters might take care lest he thereby become a monster. And if you gaze for long into an abyss, the abyss gazes also into you." - Fredrick Neechee.

Source: Disclose.tv
By: Bill Sardi - LewRockwell.com