Gary North

Feb. 28, 2009

The FDIC's numbers were assembled by Bill Sardi. They trace the decline of the DIF: Deposit Insurance Fund.

Look at March, 2007. See how much money (T-bills) was in the kitty? What a difference a year makes!

The chart is here.

It is obvious where this is headed. Congress dares not let a major bank go under. This is why Obama has pledged a bailout for the 19 largest banks .

But there are 252 banks on the FDIC's troubled bank list.

The FDIC has a $30 billion line of credit with Congress. The FDIC will probably have to tap into this in 2009. What if it runs dry? The FDIC has asked for this credit line to be raised to $100 billion.

This is a bottomless pit, or close to it.

How soon do you expect a recovery?

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