I have not talked about banks failing in a while, but it is still happening every Friday night, every week.
This past Friday the FDIC closed down 8 new banks.
The following chart shows the total bank closings for 2008 (black), 2009 (blue), and the start of 2010 (orange). As you can see we are on a spectacular pace:
Quick reminder of what backs your savings in your bank account:
The lender that guarantees your deposits if your bank should fail (up to $250,000) is the FDIC.
The FDIC ran out of money in late 2009, and is currently borrowing from the Federal Government to back your savings account.
The Federal Government also does not have any money. They are currently borrowing between $200-$300 billion every month in order to avoid bankruptcy/default.
By looking at recent Asian outflows out of the treasury market, many now speculate that the largest buyer of this Federal debt every month is the Federal Reserve.
The Federal Reserve does not have any money. They only have a printing press.