The Occupy Chicago crowd is now in their third week and have not stopped occupying the corner of Jackson and LaSalle yet. With the constant protesters, there is also a constant law enforcement presence, which to the Chicago Police Departmen’s credit, has remained civil, if not sympathetic – but they still have to enforce Chicago’s municipal code.

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The rich stay richer and the rest of us…..?

Reuters reported today that economist and New York University Professor Nouriel Roubini predicts hundreds of banks will fail in the near future. Not a hard bet since 90 banks are already on the FDIC watch list, though the “funny” thing is, they used to tell you who they were. Now the feds keep it quiet. Afraid of runs on the banks? http://www.reuters.com/article/newsOne/idUSN0344130720080803

They also reported that Freddie Mac which insures or owns nearly half of all U.S. mortgages (I presume Fannie Mae owns the rest), had the following news to report about their financial status. They lost

$821 million, or $1.63 cents per share, compared with a profit of $729 million, or 96 cents per share, a year earlier. It follows a $151 million loss in the first quarter and brings its cumulative loss over the past four quarters to more than $4.6 billion.

And as if that isn’t enough good news, Reuters quoted Bloomberg as reporting this

Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines

The people whose lines are frozen had homes that lost value…….isn’t that just about everyone?

But don’t worry. Our federal government has ensured that Freddie Mac and Fannie Mae will be able to continue to survive and pay their CEOs exorbitant sums of money, and their shareholders will continue to get dividends, albeit much smaller ones, because they passed a bill to “help out the homeowners” by extending a line of credit to these gargantuan, privately owned, publicly traded institutions. Just how bailing these guys how helps us is a huge mystery, but Congress knows all.

After bailing out Bear Stearns on our dime, and passing the bankruptcy bill to our detriment in the guise of “helping us”, I worry about what happens when the banks that are borrowing billions from the Fed can’t pay it back, and there’s no one left to buy the failing banks.

And remember, the FED, our Central Bank,  is a conglomerate of yet another group of privately owned, publicIy traded banks. It is NOT a government institution. Think they’ll let that fail?

After all of the bills passed over the last several years, that seem to do nothing but ensure that stockholders get rewarded for making bad investments (they used to call that risk), and the people who run these companies, even if they fail will leave with severance packages of $40 million, I have no reason to believe they won’t hesitate to throw all of us under the bus, when these bridges fail like the rest of the infrastructure of America.

Think they’ll send you a life raft or first responder?

THEY will protect us, you say?

If you believe that, I have a piece of foreclosed property to sell you……dirt cheap.

FYI, if you want to figure out for yourself if you bank is ok, and you can read their spreadsheet, the FDIC has their financial reports online. www.fdic.gov. Pick banker rather than consumer. You can search by state, name, etc. Remember you’re only insured up to $100,000 per account holder and $250,000 if it’s an IRA.

Caveat – the FDIC only has so much money, and they don’t have enough to bail out ALL the deposits. When they run out of cash – good luck.

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