Bank Failures Continue - 3 More

While the market is rallying, somewhat irrationally in my opinion, the hints of a lingering economic problem continue. Today we heard of 3 more banks which are being closed at a cost of over $400m dollars to the FDIC.  The FDIC has close to $13Bl in their insurance account and this account topped $40bl before the economic meltdown began.

So, the lesson is this is not over yet. Since the TARP was never really used to buy troubled assets (despite its name), banks are sitting on billions of dollars of assets which need to be written down. As they take losses due to foreclosures and other things, they cannot survive.

This, along with pensions, medicare, and social security, tell me the meltdown has not even come close to finishing.