for The Q Wealth Report
Yesterday, FDIC insured First Integrity Bank was the 4th US victim of the recent credit crunch. According to analyst blogger Nick Jones of Real Deal Financial, the FDIC keeps a ‘problem list’ of banks. In the first quarter, the number of banks on the list rose about 20% to 90 banks. That statistic is up about 70% this year.
Agora Financial’s 5-Minute Forecast also had some interesting statistics recently: FDIC insured banks in the U.S. made $14 billion less last quarter than they did one year back. The FDIC has set aside $37 billion dollars in reserve funds. That is a 20-year high. The scary part is that the percentage of troubled loans that could be rescued by that $37 billion is at a 15-year low!
Think about it. Just another in a long series of my comments that I have called “Bankrupt Banks and the New Gold Rush.” If banks in the USA are no longer secure, the US dollar is also logically not a secure place to keep your wealth. A lot of smart people realise that, which accounts for why the price of gold (the traditional store of wealth in troubled times) just keeps on rising.
There are other alternatives too. Precious stones are one. Real estate is another, if you buy carefully – people will always need a place to live. I’ll be writing more about these themes over the coming weeks. If you haven’t yet added our blog to your RSS feed reader (or your Google, Yahoo or MSN account) I would urge you to do so, so you don’t miss out. It’s very simple – just click on the appropriate button on the right of your screen!
Watch this space!