Well, Obama’s stimulus program worked out well, especially in light of the news that now the Federal Deposit Insurance Corporation, a government entity designed to insure the money you deposit in a bank, is considering borrowing cash from those very same banks before it runs out of money.
Can it get any more ridiculous? The answer is obviously yes but that’s not important now. What is important is that if the federal government were a television show, it would be cancelled before the second episode.
The New York Times reports senior regulators are considering asking the nation’s healthiest banks (yes, there are a few) to loan money to the FDIC. Why is the FDIC short on cash? The wave of bank failures, of course. Backing up deposits by all those people at all those banks has been a tad bit expensive.
Don’t forget, there is a $100 billion credit line at the treasury the FDIC can tap but, apparently, FDIC chairwoman, Sheila Blair, can’t stand Treasury Secretary, Timothy Geithner, and won’t ask him for the money.
Another option is to impose a special fee on healthy banks to prop up the FDIC but they’d much rather loan the money than be taxed for it.
As an average citizen, the lesson to take from all this is why the bloody hell would you EVER depend on ANYTHING even remotely connected with this whole incestuous federal financial system for the financial well being of you and your family? You’d have to be as crazy as they are. Consider it Reason #768 why it’s better to invest in real estate than with these bozos.
The Holistic Team
