This article is a follow-up to my article written earlier this week - "U.S. Government Bails Out Mortgage Agencies. I wanted to make everyone aware that there may be more bailouts coming. And, of course, it will be the US taxpayers money which will be on the line.

The most prominent of the possible bailouts is for the FDIC. Everyone is familar with the FDIC or the Federal Deposit Insurance Corp. The FDIC is the agency which guarantees your bank deposits.

The FDIC simply does not have the cold hard cash on hand to insure the deposits it is supposed to be overseeing. The FDIC currently has roughly $50.2 billion in funds at its disposal. This does not even cover the $78 billion in troubled bank assets that the FDIC listed as of June 30th,2008.

It is estimated that the FDIC could need as much as $124 billion in the next six months to cover assets for banks on the brink. A reminder - as of this writing, there have already been a dozen US banks that have failed and whose depositors have had to be reimbursed by the FDIC.

The banking industry is already paying a full third of its net operating revenues into the system to build up the FDIC's reserves. With all the many problems banks are experiencing, it is unlikely they will be able to contribute much more to FDIC.

What this means, of course, is that taxpayers are once again going to be put even deeper in hock to bail out the financial institutions that created the mess in the first place.

This problem will probably get a whole lot worse before it gets better. There are other federal agencies like Fannie Mae and Freddie Mac which are in financial difficulty.

In addition. there are numerous banks and other financial institutions which have inadequate reserves for many items such as: credit-card defaults, automobile loans, home-equity lines of credit, and other forms of consumer debt.

American financial institutions have already written-off in excess of $500 billion in bad debts. There is more to come. People in the know such as bond market expert Bill Gross estimates that total write-offs will be between $1 trillion and $2 trillion!

Speaking of Bill Gross (whom I spoke highly of in prior articles), he is the person everyone needs to invest with in these tough economic times if you are a bond investor.

Mr. Gross anticipated that the government would be forced to bail out Fannie Mae and Freddie Mac. He made huge purchases of mortgage bonds issued by these agencies. Because of Mr. Gross' foresight, his flagship fund - the PIMCO Total Return Fund (PTTCX)- reaped a $1.7 billion payday in the day following the government's bailout of Fannie Mae and Freddie Mac.