Two Georgia bank failures brought the U.S. bank failure tally to 126, according to the Federal Deposit Insurance Corporation. Regulators closed the First Security National Bank of Norcross, Ga., and Atlanta’s Buckhead Community Bank. State Bank and Trust Co. of Macon, Ga. will assume the deposits of both banks. As of Sept. 30, First Security had total assets of about $128 million and total deposits of about $123 million, and as of Nov. 6 Buckhead had total assets of about $874 million and total deposits of about $838 million. The FDIC also indicated that 500 additional banks are under scrutiny. It’s unbelievable that the regulators allow unscrupulous accounting practices and yet these financial institutions are still insolvent.
When a bank gets closed, its deposits end up with another bank. The system never really shrinks. The debts and the obligations are just passed around and eventually they’re socialized by the issuance of more paper money.
What we have in our system today is not really capitalism. What we really have now is a crony form of socialism where all of the risks are socialized and all of the profits are privatized.
So if you’re wondering what the hell has happened to your standard of living, you really have two enemies. Number 1 – the federal government, who is robbing you blind by destroying the value of your savings. And Number 2 – big corporate America, namely the banks and the investment firms, whose livelihoods depend on the socialization of their risks.
The thing to remember is that one can’t survive without the other. The federal government needs the investment community to go along with the huge deficits it’s running and to help finance its debts. The investment community in turn requires the federal government to socialize their risks.
It’s really a mutual understanding that the way to plunder the public is by working together. So that’s why you see so many people from, say, Goldman Sachs ending up at the highest levels of government and vice versa.