Fwd: FDIC Severely Undercapitalized To Handle Coming Bank Failures

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Daniel Rezac

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Jul 28, 2008, 7:13:45 PM7/28/08

fyi, you'll appreciate this analysis....

-Dan

---------- Forwarded message ----------
From: infor...@jsmineset.com <infor...@jsmineset.com>
Date: Jul 28, 2008 2:27 PM
Subject: FDIC Severely Undercapitalized To Handle Coming Bank Failures
To: ML__530...@portaldynamonow.com

Posted On: Monday, July 28, 2008, 3:10:00 PM EST

FDIC Severely Undercapitalized To Handle Coming Bank Failures

Author: Jim Sinclair

Dear CIGAs,

Because all of us here at JSMineset care, here is the FDIC and SIPC missive from this weekend.

Have you protected yourself?

FDIC Insurance quoted by all banks to calm the fear of depositors is another exercise in smoke and mirrors. This can be seen in the recent commentary from FDIC on last week?s takeover of the insolvent banks, First National and First Heritage.

The FDIC notes that this bailout cost only $862 million dollars, or 0.30 percent of the $13.4 trillion dollars insured at approximately 8500 insured institutions.

We know the FDIC had net assets of $53 billion before IndyMac, which according to the FDIC will cost them between $4 billion and $8 billion. Taking the lower estimate and last week?s double-header, the FDIC?s available assets would have been reduced from $53 billion to $48 billion. We therefore have $48 billion in available funds guaranteeing $13.4 trillion in deposits. By rounding out the total FDIC assets, they represent 0.35% of what is insured.

This amounts to a vastly undercapitalized insurance company that makes outrageous claims, guaranteeing all US depositors up to $100,000 through 8,500 institutions.

I estimate that with the failure of one more major bank and ten reasonably sized regional banks the FDIC will be screaming for additional capital. That is monetizing bankrupt banks. This is true because the funds will come from public money.

Are you still in a freeze frame about protecting yourself?

Think about the other smoke and mirror game called SIPC that your broker assures you will take care of any loss in client assets, which is capitalized at $1.5 billion. Any of the big 6 has more than that in customer assets. It is possible that just one account at one of the big six has that amount alone.

You might consider all the calming brokers speaking about the additional insurance they carry for their clients, written to the firm for the benefit of their clients, even though your name is not on it. Now we all trust our brokers to do right by us, don?t we?

I wonder how long a bankruptcy judge would take to distribute the secondary funds to clients. I am sure it would take at least a few years.

If such an event were to occur, I imagine the dollar would be confetti by the time of distribution.

Respectfully yours,
Jim

( Click on the link below to visit our website. )

http://www.jsmineset.com/

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--
Dan

sca...@gmail.com

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Jul 29, 2008, 4:44:29 PM7/29/08

to TruthAvengers

I read with interest what you mentioned here and thought back to a few
years ago when speaking with a local phone company repairmen.He was at
retirement age and had planned on taking his retirement fund he had
been funding for 30 years(he was 65 at the time).
His retirement fund was tied to the Fannie Mae/ Freddie Mac
groups. One day his healthy nest egg was there and a few days later it
wasn't. When he called his fund manager, he was told the cause was
Wall street losses and that had been what cleaned out his account and
that of many others.
Not long after that I was told by a friend that those Fannie Mae/
Freddie Mac funds had been stolen. This would be confirmed by bit and
pieces I received over the last two years.
By bailing out these two organizations (private and now
seemingly government owned due to bailout with taxpayer money)
taxpayers are covering a theft of massive proportions and footing the
bill.
Because the U.S. banking industry hasn't been able to use SWIFT
since mid April 2008 and thus not being able to trade on
debentures(long overused) we are seeing the multiple stresses hitting
home and banks closing.
What is happening though is a massive cleanup of banking
officers, their lawyers and illegal transactions stemming from
decades of corrupt manipulation of the banking system.
I think we'll see many banks in poor financial condition bought
out by stronger banks and other organizations, many more arrests and
increasing public coverage of the many illegal transactions and thefts
and it looks to be a good time to learn how to barter with out cash.
The change coming is a good one for all people, but we may see some
rough times before we get there .

PatM

On Jul 28, 5:13 pm, "Daniel Rezac" <daniel.re...@gmail.com> wrote:
> fyi, you'll appreciate this analysis....
> -Dan
>
> ---------- Forwarded message ----------
> From: informat...@jsmineset.com <informat...@jsmineset.com>
> Date: Jul 28, 2008 2:27 PM
> Subject: FDIC Severely Undercapitalized To Handle Coming Bank Failures
> To: ML__530369_...@portaldynamonow.com
>
> Posted On: Monday, July 28, 2008, 3:10:00 PM EST
>

> FDIC Severely Undercapitalized To Handle Coming Bank Failures
>

> Author: *Jim Sinclair*
>
> *Dear CIGAs,*

> *http://www.jsmineset.com/*<http://www.jsmineset.com/>

> To remove yourself from the mailing list, please click here

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