Major Bank Failure: 10,000 People Lose Massive Amounts of their Savings Deposits Over $1 Billion Uninsured Deposits!

Q: Why is Henry Paulson covering his hands over his face?

A.







He knows the #$%@ is about to hit the fan!!

And the media is hiding the story.







This morning if you go to www. cnn. com it is buried and even The New York Times does not have the story on the cover of its business section! What the heck is going on here?

This is the third largest bank in U.S. History to fail. It is up there with the failure of Republic Bank in Texas in the 1980s as well as Continental Bank of Illinois. This loss is wiping out $4 to $8 billion of the FDIC's $53 billion deposit-insurance fund.







Get set for a slew of failures!

THE LARGE BANKS ARE STARTING TO FAIL!

The Federal Reserve and the U.S. Treasury have been hinting about the danger of one or more major banks failing for a few weeks now in hopes that making that the warning ahead of time might help overt an all out banking panic.

The Pasadena, California thrift IndyMac Bank, spun out of Countrywide Credit who was a prolific mortgage specialist that helped fuel the housing boom, was seized by federal regulators late yesterday, in the third-largest bank failure in U.S. history.

What caused the failure? Simple. Bad loans. The run on the bank occurred when Senator Charles Schumer of NewYork made a bad situation worse when he released a letter he wrote to the Office of Thrift Supervision expressing concern that IndyMac was not a going concern. He then released this letter to grandstand his views. As these views became known over $1 billion was taken from the bank, effectively a bank run.

The Wall Street Journal is saying this collapse won’t likely be the last.







The Journal goes on to report that Banking regulators are bracing “for a slew of failures”.

To give you an idea on how immense this failure is it is expected to cost the Federal Deposit Insurance Corp. between $4 billion and $8 billion, potentially wiping out more than 10% of the FDIC's $53 billion deposit-insurance fund.

I believe this his failure is going to shock and frighten most people in that over 10,000 people are going to loose half the money they had in the bank over the FDIC insured $100,000.

If you have more than $100,000 in any one bank, I am begging you to take steps immediately to make sure you don’t have more than $100,000 in any one bank and that every bank you are doing business with had FDIC insurance to cover the amount you have on deposit. Please, NO BANK IS TOO BIG TO FAIL.

Also, you need to review where your assets are held in brokerage accounts. Just like the banks who are insured by the FDIC your brokerage accounts are insured by SPIC.







This stands for Securities Investor Protection Corporation. SPIC has even less in its insurance fund, only $1 billion. That’s right while the FDIC has $53 billion SPIC has $1 billion.

SIPC coverage is limited to $500,000 per customer but here is the catch ONLY $100,000 in cash. How could they cover a failure of Merrill Lynch whose assets are in the trillions? The answer is they cannot.

Yesterday, even before the market opened fears that Fannie Mae and Freddie Mac (which have issued insurance on $5 Trillion in mortgages and have just $80 billion in reserves) were going about to collapse sent shares in both nose diving over 40%. Should the mortgage failure rate continue to rise even a few percentage points at this point, we could see the worst financial meltdown since 1929. Even though the Federal Reserve has said it would come to the rescue of Fannie Mae and Freddie Mac.

Where are they going to get the money from? You got it, they’ll just print it!

Wall Street’s Reaction

To be clear I am not saying Wall Street will collapse because of this one bank failure but I am issuing this urgent call so you can to take steps to make sure you don’t wind up standing in line outside any bank you do business to collect what’s left of your deposits.

Please ... if you don’t own physical gold or just own a small amount it’s now a matter of financial survival that you put at least 15% of your savings in U.S. and World Gold and Platinum bullion and rare coins. I prefer rare coins certified and graded by NGC or PCGS. You can actually buy physical gold, platinum and silver for your IRA and my staff of gold experts can help you do this.

When I envisioned gold shooting to $2,500 and platinum soaring to $5,000 I always knew the first sign of a dollar panic would come in the form of a “slew of bank failures.” I consider the the largest banking failure in almost twenty years as a clear shot over the bow and the warnings of more to come to be enough a clear signal that we may be only months, weeks or even days from a catastrophic banking panic.