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Will bank insolvencies be funded by increased federal deficit spending?

*, by Jim Sinclair, August 13, 2008

“Please notice herein that the FDIC outlays are rising with each report. It says here that the FDIC outlaid $15 billions in bank takeovers. The FDIC has $53 billion to start. Now that figure has dropped to $38 billion. That means the FDIC has burned approximately 28% of its capital already. I imagine when it hits $30 billion the FDIC will be screaming for more funding.

Have you protected yourself? Don’t let this phony dollar rally lull you into a false sense of calm. Nothing has changed. As outlined here in the past, fundamental dollar problems are significantly worse than the media would suggest. It is still early in this unwinding of a financial system and already the FDIC is headed for its own debacle.”

*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.