Robin Hood is sick

This is nuts – but it’s just like all the other government Ponzi schemes.  I just read an article on CNN about the FDIC taking money from large banks in order to have enough funds to bail out failed banks – which have been mainly smaller banks.

The article says  “A lot of large banks haven’t failed because of massive government assistance,” Bair said. “If it weren’t for those, some big banks would have failed and there would have been costs.”

Duh.  So Bair’s policy is effectively to take government money from large banks (which have received bailouts) and use it as insurance to pay depositors in small banks.  Is she really so stupid that she doesn’t think we can tell that it’s government money being used to pay for government insurance?  And that we don’t realize where that money is coming from?

The money is literally being printed out of thin air, which causes inflation.  I’m not the brightest candle on the shelf, but even I can tell that this is not going to actually solve anything.

gk

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One Response

  1. I guess it was only a matter of time before the FDIC ran out of money. So, the big banks get money, the small collapsing banks get money to cover their assets, I guess the only ones not receiving any money is …… small successful banks. Which is probably the only banks that could have brought some prosperity in this mess. Ah, screw those.

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