Monday, March 22, 2010

Bank Failures Gain Steam in 2010 Outpacing 2009

The media is keeping the bad news under the public radar that U.S. bank collapses are accelerating. The largest bank to recently fail in California is La Jolla Bank FSB in La Jolla, California.

La Jolla Bank FSB in California was taken over by the Federal Deposit Insurance Corp. It had 10 branches, $3.6 billion in assets and $2.8 billion in deposits. Its deposits and assets were taken over by OneWest Bank in Pasadena in a deal that is expected to cost the insurance fund $882.3 million. OneWest and the FDIC will share the losses on failed bank loans and other assets of approximately $3.3 billion.

Like the Titanic gradually imploded into the sea, so is the U.S. banking system. In February, 2010, bank failures surged 25% in one week. The banking system is gradually hemorrhaging. Smart people will make sure to invest in precious metals, long term food storage, survival gear and prepare for the worst. Banks could very well prevent withdrawals from accounts with a banking holiday.

Based on what I've read and listened to the past several months, including that of top trends forecaster Gerald Celente, 2010 is going to be a year of economic collapse. Key states including California and Illinois are on the verge of bankruptcy.

After the health care bill was passed on March 21, 2010, Congressman Ron Paul predicted the United States will go into bankruptcy. "Obamacare will be repealed by bankruptcy" Paul proclaimed.