Today we received an update on the solvency of the FDIC. This is the company that backs the savings in your bank account.
The following chart shows the ratio of the FDIC assets relative to the deposits they insure:
You are reading it correct. The number is below zero. Not only do they have $0 available to back the savings deposits, they currently owe $20.9 billion.
This number will get far worse as the assets they acquire every Friday night during banks failures continue to depreciate in value. (Commercial Real Estate)
So who backs the FDIC? The Federal Government. The Federal Government is currently $13 trillion underwater and borrowing $2 trillion every year to stay solvent.
Who backs the Federal Government? The Federal Reserve. With a printing press.
