Is the Bubble About to Burst?

Yes, it's true! The Federal Deposit Insurance Corporation (FDIC), the organization that "insures" your bank deposits, is officially broke. It ran out of money in early October due to the large number of banks that are continuing to fail.1 This news came in spite of the fact that the FDIC had raised its rates to member banks earlier in the year in an attempt to shore up its dwindling reserves.

When the financial crisis began in September of last year, the FDIC reported that 117 banks were in trouble. Since then approximately 80 percent of the banking companies on that list have gone under. To make matters worse, according to the FDIC the current number of troubled banks has risen to over 400.2 Let's think positive and say that only 50 percent of these institutions will fail during the next year; that could mean the closing of another 200 banks – twice as many as in the last 12 months. (Seven banks failed in just one day on October 23rd.)3

The FDIC has a special arrangement to borrow up to $20 billion of additional funds from the US Treasury in an emergency, but that will only get the agency through a few more months. What happens when that fund dries up?

At some point the American people will realize how dire the circumstances are and, having lost confidence in the system, will seek to withdraw their money before their banks go under as well. If you believe such a scenario is unlikely, consider the fact that the FDIC recently announced it expected to be "in the red" through 2012

As Christians, anything we do to prepare should be done unselfishly, keeping others in mind. If we are in a position to help others when things come crashing down, it will be a strong testimony to those who are unprepared. Difficult times could present unique opportunities to share the gospel of Christ with those who've been unwilling to listen before.

While Christians should be prudent and plan wisely as the Lord directs, our number one focus must be on our relationship with Him. We should use this time to grow in our walk, learning to depend on His direction in every facet of our lives. Just getting our houses in financial order won’t be enough in the days ahead. We will need supernatural discernment and perseverance that only the Holy Spirit can bring. Draw close to Jesus and He will provide the strength you need to stand firm while facing the challenges ahead!

For God did not give us a spirit of fear, but a spirit of power, of love, and of a sound mind. (2 Timothy 1:7)

It is definitely "a good day to fly."