FDIC Fund Sinks Into the Red

http://online.wsj.com/article/SB125907631604662501.html?mod=WSJ_hpp_MIDDLTopStories

The government insurance fund that protects more than $4.5 trillion of U.S. bank deposits slipped into the red at the end of September, after fifty banks collapsed during the third quarter.

The deposit insurance fund dropped by $18.6 billion during the third quarter of 2009 to negative $8.2 billion, as the Federal Deposit Insurance Corp. set aside $21.7 billion in provisions for additional bank failures. This is the second time in the agency's history that the balance has fallen into negative territory.

Tracking the Nation's Bank Failures

http://s.wsj.net/public/resources/documents/info-Failed_Banks-sort.html

FHA May Need Bailout

http://5minforecast.agorafinancial.com/2010-on-track-for-record-deficit-fha-spills-the-beans-goldman-works-for-god-and-more/

The Federal Housing Administration revealed yesterday that it will likely need a government bailout. The results of an external audit (after being suddenly delayed for a week) showed the FHA’s capital cushion to be just 0.53% of its portfolio of insured mortgages. That’s way below the 2% mandated by Congress.In other words, the FHA has just $3.6 billion in reserves to back up a $679 billion book. That’s into the Fannie Mae stratosphere of leverage insanity, worse than anyone expected, and way, way beyond the Wall Street risk taking our government has so publicly vilified. Of course, a huge portion of these loans are easy-money, 3.5%-down mortgages designed to replace the subprime market and keep housing afloat during the last few years… and we’ve chronicled before their alarming rates of delinquency. The FHA’s auditors said that under adverse housing conditions, the administration could be out of money by 2011 and require a $1.6 billion injection. only off the actual reserves by about fivefold.

Foreclosures rise 7 percent in July from June

http://news.yahoo.com/s/ap/20090813/ap_on_bi_ge/us_foreclosure_rates

Foreclosure filings were up 32 percent from the same month last year, RealtyTrac Inc. said Thursday. More than 360,000 households, or one in every 355 homes, received a foreclosure-related notice, such as a notice of default or trustee's sale. That's the highest monthly level since the foreclosure-listing firm began publishing the data more than four years ago.

Banks repossessed more than 87,000 homes in July, up from about 79,000 homes a month earlier.

Joe Biden: ‘We Have to Go Spend Money to Keep From Going Bankrupt’

http://www.cnsnews.com/public/content/article.aspx?RsrcID=51162

" 'You’re telling me we have to go spend money to keep from going bankrupt?’ Biden said. 'The answer is yes, I’m telling you.'”

Definitions:
Bankrupt: Having been legally declared financially insolvent.
Insolvent: Having liabilities in excess of a reasonable market value of assets held

According to these definitions, to prevent bankruptcy, one must become more solvent. That would mean reducing liabilities or increase assets.

According to Biden, to prevent bankruptcy, one must also become more solvent. This is accomplished by increasing liabilities, borrowing more debt, and decreasing assets, spending money. Make sense? duh.

Under Restructuring, GM To Build More Cars Overseas

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/07/AR2009050704336.html

This is what happens when the government meddles:

"Essentially in control of the company, the president's autos task force faces an awkward choice: It can either require General Motors to keep more jobs at home, potentially raising labor costs at a company already beset with financial woes, or it can risk political fury by allowing the automaker to expand operations at lower-cost manufacturing locations."

I would be hard pressed to believe that Obama would allow jobs to go overseas, that would be political suicide. Therefore, we are probably going to see increased labor costs and more money needed to bailout this company that should have gone under already.

Obama's flawed auto logic

http://detnews.com/article/20090507/OPINION03/905070376/Obama-s-flawed-auto-logic

The sly dog.