FLASH: US banking system on verge of collapse: Senator Schumer calls for federal investigation of $51 billion in loans to Countrywide Toxic Mortgage

Folks, the United States banking system is about to collapse.

If you have money in US banks (especially Countrywide) beyond the FDIC limits, get it out tomorrow. Get it out fast. If you have money in money markets, which are NOT FDIC insured, get it out tomorrow. Get it out fast. If you still own bank and financial stocks, sell them tomorrow. Get out fast, while you still can.

The British government and Bank of England are in a whole heap of trouble for the reckless and stupid decision to bail out failed bank Northern Rock, and now they're coming to the realization they're not gonna get paid back.

But we all knew about the stupid actions in the UK. That's NOT the case in America today, where Countrywide Soon to Go Bankrupt Toxic Mortgage has secretly been fronted $51 BILLION by the FHLB member banks in order to keep them afloat, backed up by toxic loan paper that is becoming worthless real quick.

I can't believe this is happening. We (and our banks) are run by monkeys. And now even our friend Senator Schumer is freaking out, asking for a federal investigation today. When banker-owned Schumer is scared, you should be scared too.

U.S. Sen. Charles Schumer on Monday called for federal regulators to probe more than $50 billion in advances made by the Federal Home Loan Bank of Atlanta to troubled mortgage giant Countrywide Financial

In a letter dated Nov. 26 to Chairman Ronald Rosenfeld of the Federal Housing Finance Board, Schumer (D., New York) expressed "serious concern" that loans Countrywide Bank was pledging as collateral for those advances "may pose a risk to the safety and soundness of the FHLB system as a whole."

FHLB Atlanta has made $51.4 billion in advances to Countrywide Bank as of Sept. 30, Schumer wrote, citing the most recent Securities and Exchange Commission filings. The amount represents 37% of the bank's total outstanding advances and the $62.4 billion in loans Countrywide has put up as collateral represents 78% of its total mortgage holdings, Schumber said.

"I find these numbers alarming as reports continue to emerge about how Countrywide's reckless and predatory lending practices were a leading contributor to today's foreclosure crisis," Schumer wrote in calling for the probe.