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About having the banksters lend the FDIC money...

Edward Harrison cuts to the chase:

In the latest inexplicable move to extricate the U.S. banking system from crisis, the FDIC is reportedly close to asking the very banks it regulates for a loan to top up its balances. The plan is “strongly supported by bankers and their lobbyists” according to the New York Times.

Are you kidding me? This is the most preposterous thing I have heard yet. How is the FDIC suppose to adequately regulate banks when it owes them money? If your looking for a textbook route to regulatory capture, I present you Exhibit A. What’s more is banks are restricting lending right now. How is this going to help that situation?

"Help that situation"? That's assuming that the government is motivated by considerations of public policy. Big assumption, there, Ed...

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vastleft's picture
Submitted by vastleft on

After a few thousand times of rejecting the answer that the Democrats govern as they do because it's the way they want to govern, a little light sometimes dawns.

I'm grateful to President Obama for repeatedly throwing me under the bus until I wised the fuck up.

Samuel's picture
Submitted by Samuel on

...unsustainable leveraging. Depositors don't concern themselves on what banks are doing with their deposits because the government guarantees it. Deposit insurance should be a private industry so the private insurers if not depositors themselves will be critical of their bank's activities.

Consumers neglect to be critical of the entities managing their investments, banks take advantage of this circumstance, in the even of failure the 'taxpayer' pays out for the loss to the depositor.