FDIC Update…….Uh-Oh!

medium_3267644572I just wrote last month about the razor-thin percentage of the six trillion dollar FDIC-insured bank accounts versus the tiny amount of reserves  available in the event of a large bank(s) collapse.

Well lo and behold, the brilliant minds  in Congress just passed a spending bill that includes the Citibank-written provision that essentially puts us (the taxpayers) on the hook via “FDIC insurance” for not only the old six trillion of our money in the banks but an additional 700 trillion (I know there’s no way to wrap your mind around that number but bear with me) of derivative exposure, 90% of which is held by five large banks: you probably deal with one of those five in some fashion.

We are on the precipice of a financial disaster that makes the crash of ’29 feel like a Sunday drive with the top down. I can’t say when, if I knew that I would be the wealthiest man in the world some day soon. But I can tell you it is coming, and your money sitting in the bank “insured” by the FDIC is not safe, period.