Posted on 10/02/2009 12:48:19 AM PDT by rabscuttle385
My mother would have understood the implications of the Federal Deposit Insurance Corp.'s recent announcement that it is requiring U.S. banks to collectively remit advance payment of some $45 billion in future deposit insurance premiums.
As a grade-schooler, I had to clear big purchases with her, even if the cash came from my own piggy bank. "I'll pay for it with my own money," I'd plead when she vetoed some imprudent outlay. "It's still all gotta come out of this one old farm," she would reply.
Banks may write the checks for FDIC premiums, but the money really has to come out of this one old general public. The large losses the FDIC is absorbing as it closes insolvent banks eventually come out of the pockets of households and businesses that either earn slightly less interest on their deposits or pay slightly higher interest on their loans. In the long run, bank managers' salaries won't suffer nor will stockholders earn less in dividends.
This does not result from underhanded sharp practices by bankers. It simply is how, in a market economy, the cost of producing any product or service eventually gets incorporated into the market price.
(Excerpt) Read more at twincities.com ...
So simple, so ignored.
This government better be electoral overthrown in this coming Congressional election.
Or else.
The thing is, the GOP is such a clueless crew of namby pamby cheese weasels. Last night I watched an interview with Lindsey ‘Hamster’ Graham. He sounded just like Obama, or a WH hack dumping on conservatives and said Obama was a ‘good man’.
Mitt Romney, not one Romney male, ever, has ever served in any capacity in the military since before the Civil War. WTF.
McCain is toast. Mentally gone. Our Senator Bird.
I’m thinking a lot about the French Revolution where basically all Royalty and even Royal reformers( which would be our so called Republicans) were revolted upon.
Our Cities could go up in anarchistic flames spread by the now moral monster products of the Welfare industry, and our highways and roads cut off by rural opposition. I doubt the Army, heavily recruited from rural whites and urban minorities could stop it. Police would quickly step aside, much like they do in every war.
We had the supposed Revolutionary War, which was a conservative war to preserve rights and privileges. The Civil War which was really the War between the States. We have never had a true civil war where each town could be split, neighbor against neighbor with no true physical boundaries.
Hasn’t happened. Yet.
Serious unrest by next summer is my prediction.
Thanks for the ping.
My Grandfather's grandfather was a police captain in New York during the Civil War draft riots. The riots burned themselves out, but the police did not step aside.
During the great depression unemployment hit 25%. (Which is where I think we're headed if Obama doesn't come to his senses.) Of course, the price of the Depression was the New Deal and the Second World War. I hope we can avoid similar catastrophes.
$45,000,000,000 prepaid premiums. Talk about ATM fees.
Bad history.
Entire Army units were pulled literally out of battle and sent to New York. It wasn’t the police, it was the Army. Also, you might not know, but Lincoln imprisoned, with out charge, 30 thousand Northern editors, writers, politicians and political opponents. Now there was a man who knew his emergency powers.
Anyways, back in those days, even in the Depression you could separate yourself, somewhat from the destructive powers of centralized government. Further people were more independent, America was a powerful manufacturing center, the dollar had only begun to be depreciated by the Federal Reserve to it’s now 1 percent value of the 1913 dollar.
We’re as a people a vulgarized, rent seeking, social security check dependent, a historical and cultural and moral adrift people.
We have never, ever had the dependency and concentration of power in state and federal governments. We have never had the debts, nor tax rates like this.
We are in a state, as I said, way way different than anything in our history and much like pre revolutionary France or Russia.
Every dollar taken out of a bank, that is ten dollars that can not be loaned, roughly.
So, the FDIC is pulling half a trillion in credit out of the economy.
One arm of the government helping screw up another arm of the government that was doing its own damage to yet a third arm of the government.
Nice. (sarcasm/off)
On the plus side, their paychecks and benefits come in every two weeks no matter what.
Obama, Leftist, RINOs all pass legislation that if you do not slavishly obey, violence will be delivered to you.
The State, any state, is violence and theft. It is the mothers milk of our and any government. They, the governmentalists, Kings, Congressmen, Senators, Great Leaders love violence. It is the gasoline that makes their engine go.
It isn’t a question of recommending. It is just it. Violence is the State, and the State is Violence. Organized violence, systemic violence, planned polished practiced violence.
Whenever populists get the brainstorm of trying to rob bankers, all that happens is they pay twice as much for the services of capital. Capital that is not paid for ceases to exist, and scarcity raises the value of anything and the cost for its services. You can't make capital cost less by welshing. You just pay twice as much for twice as long.
And this lowers risk for them how?
The key is to capture the loan, welsh and transfer the costs to others. See Urban Renewal, Model Cities, Social Security, et al.
Second, banks are reducing their exposure to consumer loans experiencing high rates of default, while increasing their holdings of government and corporate bonds. As those yield significantly more than their funding costs on short term CDs and deposits, and have either no defaults (governments) or quite low ones fully covered by their excess rate (corporates), this lowers their overall credit-loss costs at this point in the cycle.
Deadbeat behavior does not encourage more loans to the sector full of said deadbeats.
Borrowers as a group always pay the full cost of lending to them, as a category. Always.
When socialists dream of robbery they never think it through and it never actually works. It can wreck plenty along the way, most that can be said.
Hardly? Seems pretty damn popular.
You talk about economy in general. There are lush palaces all over the world, occupied by organizational schemers from busted out nations to Russian ‘enterprises’ all over the world. Odd how metro Washington DC is the lowest unemployment in the nation.
Ever since the first hunter gathers took the longer term risk of staying put and investing in a place, crops and cattle, others have schemed to acquire the work of others.
Socialism works for the first in the scheme. It does work.
A lot of people have given up the pony and crossbow for the Kennedy School of Government and other credential mills. Try doing anything in this country with out some form waver jumping out of the woodline saying you have to pay up.
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