The Other McCain

"One should either write ruthlessly what one believes to be the truth, or else shut up." — Arthur Koestler

It’s FDIC Failed-Bank Friday!

Posted on | July 16, 2010 | 4 Comments

How’s that “recovery summer” workin’ out for ya?

Regulators on Friday shut down three banks in Florida, two in South Carolina and one in Michigan, bringing to 96 the number of U.S. banks to succumb this year to the recession and mounting loan defaults. . . .
With 96 closures nationwide so far this year, the pace of bank failures far outstrips that of 2009, which was already a brisk year for shutdowns. By this time last year, regulators had closed 57 banks. The pace has accelerated as banks’ losses mount on loans made for commercial property and development. . . .
As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, and its deficit stood at $20.7 billion as of March 31.

So, six more bank failures, the Dow drops 261 points and even Ezra Klein admits Obamanomics can’t produce a real recovery.

All in all, a great day for pessimists!

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Category: Economics

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