Run on Federal Reserve Bank????

Unrelated to the FRB per-se, but take a look at failed FDIC insured banks...

http://www.fdic.gov/bank/individual/failed/banklist.html

The number of failures in 2008 has already surpassed the total number for 2007. And what to make of the ominous gap (no failures) in 2005 and 2006, the end of the housing mania.

Of a curious interest to me is the Bentonville AR bank failure in early May 2008... The corporate headquarters of Walmart.

Osorico

 

Trendytrader said""US banks are bankrupt. The latest figures have non-borrowed reserves moving higher again this week.""
Trendy, I thought reserves were good ?!?!?!
Please explain this as I need to learn more.

 

Depends how you measure "reserves". The banks have swapped their worthless CDO/MBS and other now worthless assets for FED treasuries. Otherwise they would be mostly upside down assets worth less than loans outstanding.

Remember banking is based on fractional-reserves.

 

reserves on what???

there's no gold or silver to reserve on??

wtf reserves.. there aint no reserves...

 

Run on the fed? What, somebody run out of ink and paper?

 

We are now down to $476B. Not much left to swap for crap junk bonds now.

http://www.ny.frb.org/markets/soma/sysopen_accholdings.html