You have to hand it to Washington, our leaders have outdone themselves. While we have been distracted by the housing crisis, they have continued to manipulate strengthen our banking system until they now have virtual control over many of our largest financial institutions. In their infinite wisdom they have taken whatever measures necessary to meet their goal of keeping our banking system strong.

 

Now we have a report from FDIC Chairman, Sheila Bair, which shows just how effective their efforts have been. Congress should be proud; and we can now rest easy knowing they have judiciously applied trillions of our tax dollars.

 

The report from Chairman Bair states that the FDIC could become insolvent this year. WHAT? It was only a short time ago that the FDIC chief said that they had absolutely no concerns that the deposit insurance fund was in any danger; and that it had sufficient reserves to deal with almost any worse case scenario. So what happened?

 

Well, several banks have failed, costing the fund more than 15 billion dollars in the fourth quarter alone; and the FDIC expects “a large number” to fail this year. To compensate, the FDIC is raising fees to banks and is expected to assess an emergency fee just to keep up with anticipated failures.

 

Is there more to come? The government isn’t going to tell us, but common sense says yes, when AIG lost an average of 28 million dollars an hour during the fourth quarter of last year, and Citigroup is now trading for $1 per share. So give our leaders credit; they need it now more than ever!

 
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6 Comments on Give 'em Credit

MAR
05
2009
289,689 Points 6 Featured Posts Called Shot Master

Yikes, whenever someone says not to worry, that's when I start worrying.  I thought that 2008 was a year to remember, 2009 could put it in the weeds.
7:58pm • #1
452,806 Points 81 Featured Posts Called Shot Master

Kate, while the new year may bring pain for a lot of people, it can be a year of opportunity for those who capitalize on changing market trends and who are willing to take an innovative approach to their business. The best to you in 2009!
8:16pm • #2
459,700 Points 5 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

When the economy takes a nose dive the only thing to barter with that will be left is.... gold , real estate, beans, and bullets ,  well maybe water, chickens, seed, and cows.   ;0)

On a serious note I am worried that the Fed waits way to long to give us the news.  This could be why Wallstreet reacts way too fast .
8:32pm • #3
452,806 Points 81 Featured Posts Called Shot Master

Trey, government doesn't think we can handle the news, and they don't have a solution to the problem, so they try to keep us in the dark. That's why they manipulate the unemployment and GDP numbers.
9:15pm • #4
MAR
06
2009
366,695 Points

The FDIC was in trouble last fall but it did not make the news. They have been close to going under for a few months now. Funny how the news does not get reported until it is too late.
8:28am • #5
452,806 Points 81 Featured Posts Called Shot Master

Kevin, it's just the government's way of protecting us from bad news; like a good parent, they don't want us to worry : )
9:50am • #6


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