These economic problems are so far from over it is hard to understand how talking heads keep a straight face.

The FDIC will run out of money. The FDIC will go to the US Treasury. The US Treasury will loan the FDIC whatever they need.

The loan will start as cash but end up as short term non-marketable US Treasury instruments. Either way it is more money thrown into the swirling dark hole of hyper inflation.

This is fact. All arguments to the contrary are noise signifying stupidity.

FDIC problem bank list hits 416, but recovery eyed
Thu Aug 27, 2009 3:41pm EDT
By Karey Wutkowski and Steve Eder

WASHINGTON (Reuters) – Problem U.S. banks and thrifts on an official watchlist rose more than a third to 416 in the second quarter of 2009, as bad loans continued to bite, but regulators saw signs of stabilization in the industry.

The Federal Deposit Insurance Corp said on Thursday that the industry swung back to a $3.7 billion loss in the second quarter, after reporting a $7.6 billion profit in the first quarter, primarily due to costs associated with rising levels of bad loans and falling asset values.

"Banking industry performance is — as always — a lagging indicator," FDIC Chairman Sheila Bair said.

She said the source of the banking industry’s problems had migrated from residential loans and complex mortgage-related assets to more conventional types of retail and commercial loans that have been hit hard by the recession.

But Bair pointed to a smaller quarterly increase in troubled loans and decreases in the volume of some delinquent loan categories, as a possible turning point in the quality of assets that have weighed heavily on banks’ balance sheets.

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