Dark storm clouds gather in financial sector

Columbia Conservative Examiner
Anthony G. Martin
August 29, 2009

For the past few months I have been encouraging readers to do their own research on the U.S. economy rather than rely on the rosy picture being painted for us by the Obama administration and the talking heads on TV news.

Obama and his minions would love for us to believe that ‘recovery is just around the corner,’ and ‘we are on the brink of a rebound,’ and other such nonsense.

Indeed, the stock market seems to back them up.

However, the stock market was up significantly in the months leading up to the big crash of 1929. This is no indication that a train-wreck isn’t about to occur.

Troubling storm clouds are gathering in several sectors of the economy. First, the ever-growing load of debt the country is carrying will prevent any significant recovery. The debt is simply too high, too staggering, too mind-boggling. Second, the Obama administration keeps spending red ink money like it’s growing on trees and hints it will have to levy hefty tax increases on the middle class in the midst of a recession–not a good strategy for a ‘recovery.’ Third, the Treasury and the Federal Reserve continue the house-of-cards practice of monetizing part of the debt and then quickly auctioning off the bonds, the result of which is the creation of even more debt. And fourth, major bank failures continue and one observer stated that in the coming 2 years we could see 1000 banks fail.

If that prediction becomes reality, there is no way the FDIC will be able to cover the losses Americans will sustain as they see their bank accounts go up in smoke. Sean Hannity of Fox News stated recently that the FDIC is already out of money, teetering on the edge of bankruptcy–a claim that many say is exaggerated.

But just how many bank accounts would the FDIC be able to cover in the event of a massive meltdown?

This article continues at The Examiner

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