Alabama regional lender, Colonial Bank, just became the 6th largest bank failure in U.S. history and the largest since Washington Mutual last year.

Regulators seized Colonial last Friday, selling the bank’s deposits and assets to their competitor BB&T. Colonial was founded by real estate developer, Robert E. Lowder in 1981. The bank stayed true to its roots, right to the end (of the housing bubble).

In a 2006 interview, Lowder said, “We’ve always been a real estate bank. We understand real estate lending. For us, we think it’s a good safe market to be in.” Evidently, they didn’t understand the market as well as they thought. The bank sunk under the weight of $1.7 billion in losses on bad real estate loans.

The real question regarding the failure of Colonial, is what this will do to the Deposit Insurance Fund (DIF) maintained by the FDIC.

The FDIC Deposit Insurance Fund started 2008

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I was reading Michael J. Panzner’s book When Giants Fall, a scary-yet-scholarly look at how the hell we got into this mess, and I was impressed with how the title When Giants Fall so perfectly describes America (the heretofore ravenous, gluttonous engine of global economics based on the fraud of an expanding fiat currency) falling on its fat, stupid face.

And falling on its face, dead to the world, is what America so richly deserves, as it was built upon the idiocy of ignoring the Constitution (“Money shall be only of silver and gold”!), and then committing the folly of a fiat currency (“create as much paper money as the Federal Reserve wants!”) and insane degrees of fractional reserve banking (“we can loan as much as we want without limit!”) so that socialists and commie-think morons in Congress can deficit-spend us (“free lunches for everybody!”) into ruination.

For those who take everything

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My latest sure-fire, money-maker idea is to sue Yu Yongding, former bigshot with the Chinese central bank, for plagiarism, as he is the guy who said that “If the US can find a way to protect China’s assets, America’s standing here will increase.” My case is built on the fact that he said, repeated so as to make sure it is on the record, that “If the US can find a way to protect China’s assets, America’s standing here will increase.”

I am suing because this is identical – identical! – to what I said a long time ago, which I am sure you will readily see when you compare his obviously-plagiarized remarks to my original, “If you think that you can find a way to stop the inflationary suicide caused by the over-creation of money and credit, especially when used to finance massive government deficit-spending over the long-term, then you

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I keep marveling at the Financial Times article talking about Angela Merkel, the German chancellor, breaking tradition and ridiculing central banks and their idiotic monetary policies. And apparently her feelings about the absolute stupidity of central banks in general and the Federal Reserve in particular are shared by a lot of people, as more and more countries are now “more resistant to taking advice from Anglo-Saxon quarters,” since they think “these countries’ economic models have been exposed as deeply flawed.”

Exactly! Wonderful to hear such uncommonly correct monetary analysis! And from foreigners, too, a class of people that we Americans look down upon with cold disdain since they are always appearing in the movies as a bunch of dim-witted guys with bad accents who are always trying to kill James Bond, and if the only good-looking girl in the film gets killed, then it is always a foreigner that kills her.

But

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Total Fed Credit, otherwise known as Federal Reserve Credit, ballooned by a huge $76.9 billion last week, taking the Fed’s total “help” to the scumbag banks to a nice, cool $1.9 trillion, of which a whopping $56 billion gob of the money created last week by the Fed was used by the Fed itself to buy Treasury securities for itself! Hahaha! What a scam!

In case you were wondering, this Fed Credit is the stuff that the Federal Reserve magically makes appear, literally at the push of a button on a computer, on the balance sheets of the nation’s banks, where it sits until someone wants to borrow some money from the bank, whereupon the banks can loan out Huge Freaking Multiples (HFM) of the amount of the original credit by virtue of the scam known as “fractional-reserve banking.”

And when this new Fed-created credit is lent by the banks, at that

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We are all being deceived by the nature of our banking system, says Matthew Collins. Fractional reserve banking is corrupt. And with the Fed at the heart of the scam, it’s no wonder things are so messed up. Matthew says its time we stand up and demand answers.

This from The Sovereign Society:

Your bank is a counterfeiter, as facilitated by the Federal Reserve System and permitted by the government that allegedly represents you.

The lie of fractional reserve banking is at the heart of our ‘banking’ system. And its acceptance as fact or necessity by the world’s populace is the basis on which most other economic lies and myths gain so much credibility.

To understand why we’re in so much trouble right now, and why the privately owned Federal Reserve Banks are to blame, one must understand fractional reserve banking, and why it amounts to little more than counterfeiting.

King Edward II, ...

And this time in history we have gone one step farther down the path of True Economic Insanity (TEI) in that we not only created and spent all that money on gluttonous consumption, but we borrowed it all into existence, too! Hahaha!

John Stepek of MoneyWeek magazine says, “Federal Reserve chief Ben Bernanke has studied the Depression, they say. He knows what to do.”

Feeling particularly feisty, I immediately felt the need to burst in with a rude remark (”Hahahaha! What a load of crap, and Bernanke is an idiot!”) because if there WERE a way to do something to prevent economic collapse from debt-addled stupidity - which is so timelessly universal that it is almost a cliché - then somebody in all the rest of world history would have thought of it by now; and they have all literally thought of, and done, everything that the brightest people of

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Adam Lass says the US economy looks “dreadful” in the short term. And it faces long-term monetary ruin. But somewhere in between, he expects a new bubble to form. One that will make some investors huge profits. To survive until then, Adam says you must use put options on “deadbeats” like Kohls (NYSE:KSS) to hedge long positions on proven “survivors” like Macy’s (NYSE:M).

This from Taipan Daily:

“Widespread property foreclosures have led to bank failures, and further to much unemployment and a disastrous decline in manufacturing and agricultural production.” Sound a tad familiar?

No, it is not another of my dreary “ripped from today’s headlines” quotes. Rather, it is a contemporaneous description of the chain of events that lead to, and resulted from, the Panic of 1819.

And

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