Government Articles - The FDIC is Broke
This number was $100k for many years, until some of our Congress critters realized two things:
* Many banks were going to fail * They had money in those banks
As then-Congressman Obama stated:
"The majority of American families should rest assured that the deposits they have in our banks are safe. That is why today, I am proposing that we also raise the FDIC limit to $250,000 as part of the economic rescue package -- a step that would boost small businesses, make our banking system more secure and help restore public confidence in our financial system."
What Congress wants, Congress gets -- as long as it can be bought with taxpayer dollars.
Last September, the FDIC was singing a different tune:
"Let me be clear: The insurance fund is in a strong financial position to weather a significant upsurge in bank failures. The FDIC has all the tools and resources necessary to meet our commitment to insured depositors, which we view as sacred. I do not foresee -- as Mr. Evans suggests -- that taxpayers may have to foot the bill for a bailout."
It appears that it's not so important to "forsee" things when you have access to an unlimited supply of other people's money.
The Congress recently approved a one hundred billion dollar credit line from the taxpayers to the FDIC. Let's see how quickly the bureaucrats burn through that.
Interestingly, there is more to this story than first meets the eye. One might assume that the FDIC's going broke is only a result of Congressional foolishness and the general failure of our new socialist economy -- but that would not be quite accurate.
It turns out that the FDIC has not been following federal law in implementing Prompt Corrective Action against these failing banks. Why? Why would Sheila Blair and Tim Geithner risk their careers by violating federal law by delaying placing failed banking institutions into receivership? The answer, as per usual, is politics. The Obama administration is attempting to make the economy look better at the expense of actually making the problem worse.
This can't go on forever, of course. Eventually the piper must be paid -- by the American taxpayer.Jose Martinez is the author of The FDIC is Broke and Kanye West is Al Gore.
Related Tags: depression, banking, banks, government, politics, recession, obama, fdic
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Law Articles - Public Criminal Records on the Net
If you're looking for the safest place to be with this time, you may have some difficulties doing so - Law Articles - Selecting a Criminal Defense Lawyer - The Do's and Don'ts
In basketball, they say that a good defense is the best offense. The same goes when you have to go t - Christianity Articles - Mighty Acts are here and Psalm 150
1 Praise the LORD! Praise God in His sanctuary; Praise Him in His mighty firmament! 2 - Government Articles - Lito Atienza For Manila Mayor - Vote For Someone Prolife
In the approaching Manila elections, a prospect with supreme pro life advocacy has indicated his des - Government Articles - Real ID - Great Idea or Bad Idea?
Real ID Act of 2005 is calculated to fight terrorism, identity theft, and other problems by strength - Christianity Articles - Remember the Law of Moses (Malachi 4:4)
The Philadelphia Trumpet magazine article, Remember the Promises, presents itself as offering some g - Environment Articles - How will the world be affected by the outcome of the Copenhagen climate plan?
December 2009 saw Copenhagen welcome more than 40 world leaders and an additional 20,000 delegates - Christianity Articles - Taking a Stand for the Temple Mount!
On many political and religious forums I post and participate on (just google David Ben-Ariel and se - Christianity Articles - Alternative to United Nations
The hypocritical UN, that diseased body of the dysfunctional family of nations, is worthless except - Spiritual Articles - The Realities of 2012
As with most serious problems in our country, only a crisis of major proportions generates action. B
Most viewed articles in this category:
- Lost on a Couch
"Lost on a Couch" - the psychological reasons for the US defeat in Iraq In many ways the de - Why Should We Fight the War Against Terror?
The War on Terror is getting a lot of attention these days. Most people either strongly suppor - Is George Allen's Political Career Over?
In the wake of George Allen's defeat by Jim Webb, let's not write Allen's political obituary just ye - Freakonomics, a Book Review
If the thought of a book on economics is about as exciting as watching your toenails grow, or you ar - The Basics of Government Auctions
A government auction is a good place to buy quality or unusual merchandise at a bargain. Government - Controversial Treatment Gives Patient Higher Quality of Life but Takes Away Self Dignity
In Seattle, a 9 year old girl named Ashley is affected by a disease called static encephalopathy. T - Organic and Fairtrade Baby Food
Organic baby food has been around for a number of years but the first Fairtrade baby food was launch - The Greening of America's Cities
The Greening of American Cities Today, merely collecting the garbage, running a bottle recyclin - What to Expect from Schwarzenegger's Health Care Plan
After successful body building and acting careers, Arnold Schwarzenegger decided to attack the world - What is Bird-Flu?
Over the past year, Bird Flu has been pasted on the headlines of every major media outlet