But we need the FDIC to move fast here to liquidate its assets and make uninsured depositors whole.
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I certainly hope this is not the plan. Of course ... I think that would be vewwy wayciss. And just bad policy too.
Uninsured depositors get to wait and wait and wait—while the liquidation process moves forward.
Many of these depositors were high tech “flyers” who could barely make payroll.
By the time their cash is available its only use may be to pay their creditors in their bankruptcy proceedings.
That is what “financial contagion” is all about—businesses depend on cash flow—when they run out of cash they die—no matter who owes them money.