August 03, 2009
– Comments (9)
Story is developing............
AND PEOPLE CALL THIS A RECESSION? TAXES NEVER LIE!!!
WASHINGTON (AP) -- The recession is starving the government of tax revenue, just as the president and Congress are piling a major expansion of health care and other programs on the nation's plate and struggling to find money to pay the tab.
The numbers could hardly be more stark: Tax receipts are on pace to drop 18 percent this year, the biggest single-year decline since the Great Depression, while the federal deficit balloons to a record $1.8 trillion.
Other figures in an Associated Press analysis underscore the recession's impact: Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.
The last time the government's revenues were this bleak, the year was 1932 in the midst of the Depression.
Will the FDIC be out of money? Yes...until the FED replenishes their fund. With a handfull of banks failing every weekend? When this all started, many were declaring that we'd see 1,000+ bank failures. I don't know if that will be the case, but we'll certainly see MANY more bank failures...mostly small banks, but probably some big ones as well.
This is the FBI, not the FDIC. The FDIC typically does its raids on Friday evenings.
In my MBA class Commercial Banking, my professor who is a Harvard grad said the FDIC will be bankrupt pretty soon. I got a B in the class so I guess he is right. :)
Whenever a bank is raided, it is a orchestrated operation. Something like what you would see on T.V. in a cop show. The FDIC employees accompanied by a number of armed FBI agents swoop in and shut the bank down and hold the employees over.
If you actually experienced such an event, it is pretty awsome.
I never experienced this sort of thing, however a friend of mine is a bank examiner for the FDIC and he's talked about it. If they're doing this on a Tuesday during the day, I think it might be something a little mroe serious than insolvency.
It is a pretty complicated operation. It is why many of the raids have been on smaller banks with fewer branches....less personel was needed.
My guess is that the FDIC has been increasing training and staff over the past few months to prepare for BIGGER closures.
We shall see.
The FDIC will never run out of money. F is for federal, the group that will always have the money. No matter how worthless that money actually is.
Lol I blogged the FDIC in trouble and running out of money two days ago. :P Thanks for the link interesting info.