Wednesday, March 18, 2009


Another policy warped by "taxpayer on the hook" thinking. The FDIC has the unlimited backing of the Treasury, but it doesn't seem to understand that. The notion that the government's means are limited is now forcing the FDIC to raise fees that banks pay for desposit insurance (essentially like a tax hike on banks) or "find other sources of funding." We are destroying the banking system, which itself is a construct of the gov't, largely because of misguided thinking that is so mired in myth and fallacy that it is astonishing! There is only so much of this that our economy can withstand. We are taking a perfectly good wealth producing system and deconstructing it at every turn for no good reason.

1 comment:

googleheim said...

that's interesting -

perhaps for every unit of private shareholder or banking construct that the government destroys - it is destroying a correlated portion of itself - the government.

so the only hook the taxpayer is getting is when the government destroys itself - not from spending, stimulus, and debt structures.