Wednesday, September 23, 2009

Now, Here's a New One

The FDIC would like a loan . . . Is that not rich or what? Seems the FDIC is having a bit of trouble making "ends meet." As we all know, the FDIC has been handing out quite a bit of money lately, in bank closings. If one bank takes over another, the FDIC doesn't have to get involved, but when a bank is closed completely, the funds in each account must be distributed to the owners and it's the FDIC that does that. Now, the FDIC is only asking for loans from healthy banks. Let's break this down, for just a minute. Borrowing has gotten us into this horrible recession, depression mess. Banks have already been bailed out and interest rates are negligible. The only incentive people really have to maintain bank accounts is the convenience of writing a check or using a debit card. With savings and CD interest at an absolute minimum, the banks don't have as much money to even work with. Many banks received a government bail out and many banks have simply collapsed. Our FDIC has always been the safeguard against what happened in the first Great Depression. The FDIC has been the federally backed insurance for account holders. And now, the FDIC is asking the banks, "Hey, buddy, can you spare a dime?" Doesn't sound like the end of the recession/depression is anywhere soon on the horizon.
. . . and thou shalt not borrow. Torah of Holy Scripture
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