{"id":7561,"date":"2010-03-15T09:46:00","date_gmt":"2010-03-15T14:46:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7561"},"modified":"2010-03-15T09:46:00","modified_gmt":"2010-03-15T14:46:00","slug":"how-safe-is-your-bank-really","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/15\/how-safe-is-your-bank-really\/","title":{"rendered":"How Safe Is Your Bank, Really?"},"content":{"rendered":"<h3><span>Our FREE report reveals why the FDIC guarantee is just an &#8220;illusion&#8221;<\/span><\/h3>\n<h3><span style=\"font-size: small;\">By Nico Issac<\/span><\/h3>\n<ul type=\"square\">\n<li>So far in 2010, the number of US bank failures has reached 25, a rate of two per week. This compares to 25 total bank failures for ALL of 2008, and three for 2007.<\/li>\n<li>The benchmark KBW Bank Index still stands 60% below its 2007 peak, while one-third of all US banks reported a net loss for 2009.<\/li>\n<li>The FDIC&#8217;s list       of &#8220;problem&#8221; institutions rose from 552 to 702 from Q3 to Q4 of       2009.<\/li>\n<li>And each new day could bring a new, personally addressed letter to announce the name change of your financial institution.<\/li>\n<\/ul>\n<p>Yet &#8212; no matter how grave the data gets, few people imagine the corporate banking crisis trickling down to average Joe or Jane and their lollipop-dispensing drive-through bank tellers.<\/p>\n<p>It&#8217;s  not naive to think that, either. The agreement is understood: Money goes into  the bank as <em>liquid capital, <\/em>and comes out as a <em>loan certificate. <\/em> Practically speaking, your account balance is only as secure as the loans the bank makes with its depositors&#8217; money. The trust in that exchange reflects two main beliefs:<\/p>\n<p><strong>1)<\/strong> Banks know best how to allocate their clients&#8217; money so  as to ensure the greatest risk-to-reward ratio.<br \/>\n<strong>2) <\/strong>Banks are guaranteed by the Federal government, via the  Federal Deposit Insurance Corporation.<\/p>\n<p>Well, as the latest report from our complimentary Club EWI service reveals &#8212; neither one is as it seems. This 15-page exclusive compiles the most groundbreaking insights from various collected works of EWI president Bob Prechter himself, including: the best-selling book <em>Conquer  the Crash <\/em>and  previous <em>Elliott Wave Theorist <\/em>publications. Off the  top are these riveting thought-burners:<\/p>\n<p><strong>How are banks using your money? <\/strong>Not wisely. <em>&#8220;At latest count, US banks report $6.942 Trillion in deposits, and $6.945 Trillion in loans. In other words, the average bank in the US has lent out 100% of its deposits.&#8221;<\/em><\/p>\n<p><strong>Where is your money going?<\/strong> For the most part, it&#8217;s tied up in mortgage-backed securities. Last count: One in every 418 U.S. homes have filed for foreclosure, while the rate of default on commercial mortgages doubled in Q4 of 2009. See the problem?<\/p>\n<p><strong>What about the trusted sticker in the front window of US banks assuring that the FDIC guarantees to refund depositor&#8217;s losses of up to $100,000?<\/strong> Well, as the Club EWI report reveals, this sticker is merely a &#8220;symbol of confidence,&#8221; NOT a certainty of it. The piece goes on to add:<\/p>\n<blockquote><p><em>&#8220;Did you know that most of the FDIC&#8217;s money comes from other banks? When the FDIC rescues weak banks by charging healthier ones higher &#8216;premiums,&#8217; overall bank deposits are depleted, causing the net loan-to-deposit ratio to rise. Ultimately the federal government backs the FDIC, which sounds like a sure thing. But if tax receipts fall, the government will be hard pressed to save a large number of banks with its own diminishing supply of capital. Huge illusions can melt away in a flash if the system fails.&#8221;<\/em><\/p><\/blockquote>\n<p><strong>Where then is a bank I can trust?<\/strong> Here, the Club EWI  report provides a list of the <span style=\"text-decoration: underline;\">Top 100 highest-rated banks<\/span> in America by state based on third-quarter 2009 data. The publication also reveals the global jurisdictions that &#8220;provide wealth preservation service as opposed to interest income and daily transaction conveniences.&#8221;<\/p>\n<div>\n<p>Inside the revealing free report, you&#8217;ll  discover:<\/p>\n<ul type=\"square\">\n<li>The       100 Safest U.S. Banks (2 for each state)<\/li>\n<li>Where       your money goes after you make a deposit<\/li>\n<li>How       your fractional-reserve bank works<\/li>\n<li>What       risks you might be taking by relying on the FDIC&#8217;s guarantee<\/li>\n<\/ul>\n<p>Please protect your money. Download the free  10-page &#8220;Safe Banks&#8221; report now.<\/p>\n<p><span style=\"text-decoration: underline;\"><strong><a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa81&amp;dy=aa031210&amp;url=\/club\/Find_A_Safe_Bank_Free_Report.aspx?code=26751%26articleid=1314\">Learn  more about the &#8220;Safe Banks&#8221; report, and download it for free here<\/a>.<\/strong><\/span><\/p>\n<\/div>\n<hr size=\"1\" \/><strong><em>Nico Isaac<\/em><\/strong><em> writes for Elliott Wave International,  a market forecasting and technical analysis firm.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Nico Issac &#8211; So far in 2010, the number of US bank failures has reached 25, a rate of two per week. This compares to 25 total bank failures for ALL of 2008, and three for 2007&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7561","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=7561"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7561\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}