Posted on 09/22/2009 7:25:17 AM PDT by SeekAndFind
Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government.
Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.
The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune.
A hallmark of the financial crisis has been the decision by successive administrations over the last year to lend hundreds of billions of taxpayer dollars to large and small banks.
“It’s a nice irony,” said Karen Shaw Petrou, managing partner of Federal Financial Analytics, a consulting company. “Like so much of this crisis, this is an issue that involves the least worst options.”
Bankers and their lobbyists like the idea because it is more attractive than the alternatives: yet another across-the-board emergency assessment on them, or tapping an existing $100 billion credit line to the Treasury.
The Federal Deposit Insurance Corporation, which oversees the fund, is said to be reluctant to use its authority to borrow from the Treasury.
Under the law, the F.D.I.C. would not need permission from the Treasury to tap into a credit line of up to $100 billion. But such a step is said to be unpalatable to Sheila C. Bair, the agency chairwoman whose relations with the Treasury secretary, Timothy F. Geithner, have been strained.
“Sheila Bair would take bamboo shoots under her nails before going to Tim Geithner and the Treasury for help,” said Camden R. Fine, president of the Independent Community Bankers. “She’d do just about anything before going there.”
(Excerpt) Read more at nytimes.com ...
“Sheila Bair would take bamboo shoots under her nails before going to Tim Geithner and the Treasury for help,”
Excellent point. We are screwed we can’t use gold to buy bread or Lee jeans.
Copper was up now it is worthless...
It is now BIG local news where I live to get on a bus for DC Sept 2-3 to DC. $150.00. Also NEW is ads/radio for guns priced for every budget, cheaper than pawn shops. They say all Americans have a right to bear arms.
Cap & Trade Tax
Healthcare Tax
Confiscation of 401k/retirement money
Confiscation of private property.
It gonna get ugly.
“I warned about this on here months ago and some smartass banker types told me I was nuts the FDIC CAN’T EVER go bankrupt.”
That’s probably technically true. If ever called upon to bail out deposits summing more than they want to spend, the FDIC will simply not pay, or get its money from the Fed, or let the banks fail. In any case, it won’t be that they went bankrupt, so much as they reneged on their promises.
Add the state taxes (goods,cigarettes,beer/soda) democRATS are chunking on to pay for their arts crap and failing budgets (SEE THE LOCAL NEWS IN NC) because they spend and waste money on stupid crap- like artifacts for an art museums, global warming crap and endangered birds and turds
-— and it is going to get REAL UGLY.
The only happy, well fed people will be those on welfare.They MAY have to give up the caddie,steaks,MD 20/20 and 109 inch Direct TV but they will EAT!
DISCLAIMER:That is not a racist comment as that may be me soon.
Already pulled out of the banks months ago....
We leave just enough in there to cover utility bills etc.
Get out of debt as fast as you can, especially any debt that has collateral attached to it.
Stock up on tangibles/dry goods that don’t spoil: ie: toilet paper for example, will make for a good trade with someone that doesn’t have any. Also, bullets....lots and lots of bullets. The .22LR may just become as good as currency. IF not, you get to do alot of target practice and won’t need to buy toilet paper for awhile.
Yeah yeah yeah but eff the po po. it happened.I laugh as I type this don’t take it as an insult.
Move in with a grandmama or granddaddy that remembers the depression.
Where’d you put your cash? A safe?
Just curious...
http://market-ticker.denninger.net/archives/2009/09/22.html
Karl Denninger on this subject (an excerpt):
Let me pose a question to you.
Let’s say you own a $200,000 house free and clear.
Let’s further say that you would like fire insurance. Just in case you are a klutz in the kitchen, for example.
So you sit down and write yourself a fire insurance policy. You promise to pay yourself $200,000 to rebuild your house if it burns to the ground.
You then put your “insurance policy” in the safe and pat yourself on the back - you’re insured!
Now, you want to re-do your kitchen and add a pool, so you go to the bank to get a mortgage to finance those improvements.
The mortgage company would accept your self-written policy as proof of insurance, right?
Oh wait - they’d call that fraud?
Correct. Obama and his administration are taking issue with things being called a "tax". They just confiscate, comrade.
>>> The only thing they will NOT consider is this -— DECREASE SPENDING. <<<<<
And that’s ultimately why every particle of this problem starts and ends with the liars, thieves, and sociopaths on Capitol Hill.
They know it’s their own spending that is driving the problem, yet they will not stop.
Add that you bought the house with monoploy money and you summed up the government quite well. WAIT they don’t even have any monopoly money left China took it all.
But they have to spend billions on ACORN to fight for the community reinvestment act and let people making 5 bucks an hour but move into 580,000 dollar homes.
Another couple billion to save endangered field mice and fish bait minnows.
Several million to study homosexual people overseas some where.
Six hundred million to go on vacations in Saint Bart’s to study global Warming.
Five hundred million for boring art museums that promote green peace that no one goes to.
Seven hundred million to study cow feces...
Nine hundred million to buy all their vacation homes
I could go on and on but the list ends with Pelosi’s private lear jets.
They start coming after us.
And who can say we're not positive about the Obombmination?
"..pow, pow, . . wipe, wipe!"
LOL!!!
Tax us to death it is what democRATS do best.
On the pull money out of bank issue.
We are all spolied and pay bills, do everything online.
The VISA debit card is everyones life now...
How does one pay their mortgage et al bills in cash anymore?
I know. Let the healthy banks pay back the loans and bailouts that the sick banks took and there should be plenty for all. Or everybody will be equally sick. One.
You might see it inthe next five years. Of course the dollar then is going to be worth about a thousandth of a peso.
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