Bank Failures Setting New Record Highs

By Peter Costa

It seems like these days the crisis in the United States is only growing worse. With each passing week a new economic plight is arising. From JPMorgan being accused of manipulating the gold and silver markets to Goldman Sachs being tried for shorting their own product, the economic forecast for the future looks dreary. There is a particular event that has been kept out of the news and will be the death of the dollar and the beginning of our demise. The economic pillars of the United States are on the threshold of collapse and these pillars are none other than the bank failures happening all across the nation.

Unbeknownst to the majority we have had a banking crisis unfolding since 2008 that is sealing the fate of our great nation. Since 2008 over 228 banks have failed in the United States abducting billions of dollars from the economy. Just to paint the picture and severity of this situation two bank failures last year alone took over $33 billion out of the economy. It is safe to say that with the amount of bank failures in the last 3 year close to $1 trillion has been lost in assets. With 140 bank failures in 2009 we saw 7% of the nation’s banks close their doors for business. This situation is unprecedented from anytime in our recent history. To show you the reality of our banking system I listed all bank failures in the United States since 2000:

2000 – 2 Bank Failures
2001 – 4 Bank Failures
2002 – 11 Bank Failures
2003 – 3 Bank Failures
2004 – 4 Bank Failures
2005 – 0 Bank Failures
2006 – 0 Bank Failures
2007 – 3 Bank Failures
2008 – 25 Bank Failures
2009 – 140 Bank Failures
2010 – 63 Bank Failures

This same last year we were at 29 bank failures and in 2008 we were only at 2 bank failures. Things are only compounding with the banks and our economic crisis. Over 500 banks remain on the troubled list including Citibank. Troubled banks have begun to notify the public of a 7 day notice for withdrawal of funds. This is already effective with many banks in the nation including Citibank and if they decide to exercise this right, they could take up to 7 days to get you your funds from a checking, saving or money market account. This 7 day notice has been issued as a precautionary measure but we all know it is only a matter of time before they start exercising it. Neil Brofsky the SIGTARP, Special Inspector General for Troubled Asset Relief Program stated in a July 2009 report on government efforts to fix the financial system, that government support could reach a potential $23.7 trillion to keep thing afloat in the US. Ronald Fricke president of Regal Assets stated last week that as long as banks continue to loan out money they do not have our financial system is doomed to fail.

There is no doubt that the greenback is on the brink of collapse. The large institutions and smart money have known this for a while and have been cautiously moving their wealth into tangible assets. It is not by chance that John Paulson world renowned hedge fund manager started a gold only hedge fund this year with $250 million of his own money. It is not by chance that Warren Buffet world renowned investor has begun to diversify into precious metals with Berkshire Hathaway. Like the smart money and institutions have done you need to follow suite and start protecting your legacy. When the dollar collapses there will be zero notice, it will happen without warning and will blind side everyone. Do not risk your future, take the appropriate steps today and start backing what you have with physical precious metals.

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