Stupid World

So you've heard the media blitz of cheerleaders, umm I mean news anchors talk how we are "recovering" but todays headlines may show their true colors. Today in the NY Times, and many other sources, news was released that the FDIC is considering going to banks to well, bail the government out now!

If you don't understand the true implications of this move, then you're worse in economics then I ever was! We've all complained about the government bailing out all these failing companies, spending all our tax dollars, but we were assured this will save our economy. So what are we to think now when our own government is looking for a bailout?

The FDIC is looking to healthy banks to loan them billions to cover the insurance fund that protects depositors.

Bankers worry that a special assessment of $5 billion to $10 billion over the next six months would crimp their profits and could push a handful of banks into deeper financial trouble or even receivership. And any new borrowing from the Treasury would be construed as a taxpayer bailout that could open the industry to a political reaction, resulting in a wave of restrictions like fresh limits on executive pay.

A spokeperson for the FDIC claims that these thoughts are not really on the table but no matter what, it makes you think. If this is truly an issue, which it is, the FDIC needs money, then things truly aren't as rosey as the mainstream media is portraying.

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