More Banks to Fail

And the beat goes on! RBC Capital Markets predicts 1,000 U.S.banks could fail in the next three to five years. TMC readers, be sure you have your money in a bank that has no participation in the bailout.  Best are small local banks who are hard-ass lenders; like if you want to borrow $100 you have to have $200 on deposit with them.

There are billions of dollars of losses embedded in the system, and the system has to flush them out. The people that are going to take the losses are the taxpayers (you), and bank stockholders, and if regulators say there won’t be much loss to taxpayers, they will be lying.

The Federal Deposit Insurance Corp. closed nine banks so far this year, and shuttered 25 in 2008, leaving another 966 victims. To put it in perspective, the U.S. seized 534 lenders in 1989, during the savings & loan crisis.