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Keyboard worrier
Wednesday, April 16, 2008
Weaknesses in US depositor protection
A very timely article from Financial Sense on the FDIC and its limitations. After reading this, UK depositors may not be so keen to replicate the system.
htp: Michael Panzner's "Financial Armageddon" blog.
How many bank failures could the FDIC handle at once?
Therein lies part of the cunning plan, the mention of which will see me in cloud cuckoo land in most people's eyes,
It's never overt action but failure to act and succumbing to natural phenomena which have been induced far earlier by policy moves which is the modus operandi.
Example is the Clinton era beginnings of NAFTA. Sub prime speaks for itself.
Who permitted sub prime lending in the first place? Who failed to regulate hedge funds?
3 comments:
How many bank failures could the FDIC handle at once?
Therein lies part of the cunning plan, the mention of which will see me in cloud cuckoo land in most people's eyes,
It's never overt action but failure to act and succumbing to natural phenomena which have been induced far earlier by policy moves which is the modus operandi.
Example is the Clinton era beginnings of NAFTA. Sub prime speaks for itself.
Who permitted sub prime lending in the first place? Who failed to regulate hedge funds?
Perhaps not a cunning plan, but simple greed and folly - when you consider how much money could be made when the going was good.
I'm sure that's it but it is still cynical not to act to ensure fiscal responsibility, knowing it will stabilize the economy.
The Fed, ECB and BofE failed to do that. Yes I know they were regulated out of it, e.g. the FOMC operating rules and yet ...
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