Wednesday, March 27, 2013

This doesn't sound good...

Too big to fail or ignore: How the US went from over 13,000 banks in 1987 to 6,000 today. $7.4 trillion in deposits backed by $32 billion dollars.

Remember when too big to fail brought our economy to a grinding halt? Of course you do because this is a recent financial event with dramatic ramifications. In the time since the buffet of bailouts was rolled out you might be surprised that the too big to fail banks have only grown even larger and if they were too big to fail before, what happens when they become even bigger? Some walk around in a financially comfortable delusion about our current system even though we all realize that we will never payback our $16 trillion in national debt. You also have a banking system backing $7.4 trillion in insured deposits with $32 billion (that is, 0.43 percent). Yet in our current system the Fed is digitally inflating away our currency and limiting available banking options. Are we simply ignoring the too big to fail?

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