New York, New York (PressExposure) September 02, 2009 -- "Source One International" sources say that proof of the continuing decline in the US economy can be found in recent number from the Federal Deposit Insurance Corporation (FDIC) showing that 416 banks are now on its list of troubled institutions. In addition, it said that 81 US banks had failed in 2009.
Analysts at "Source One International" say that the FDIC is in danger of running out of money to cover depositors with the failed institutions. If it does need further funds it may need to borrow from the US Treasury.
Small and midsize banks across the US have been rocked by rising loan defaults in the long recession. When they fail, the FDIC is responsible for making sure depositors don't lose any money. The figures fly in the face of the optimism fuelled by recent jobs numbers and durable goods reports.
"Source One International" believes that the recovery in the US will be distinctly W-shaped because of the rising unemployment figures and lack of consumer spending which is crucial to the recovery.
The firm also believes that rising credit card defaults will hamper the ability of banks to extend credit to consumers in the months going forward.