Wednesday, September 17, 2008

"Full Faith and Credit..."

I saw this story on the Fox Business Channel this morning and almost fell off the couch:

The Federal Deposit Insurance Corporation, FDIC, insures the value of savings accounts in banks up to $100,000. If the bank fails the Federal government makes good the loss. Washington Mutual Bank, WAMU, has customer deposits totalling $181 billion, with the average account holding $5,000. Since June WAMU has borrowed another $53 billion from the Federal Reserve Bank of San Francisco. Unfortunately for the FDIC, and you, they only have a total of $41 billion to guarantee ALL the savings accounts in ALL the banks in the country. If WAMU fails, the FDIC is legally required to cover not only the $181 billion in customer deposits, but also the $53 billion loan from the Federal Reserve, for a total of $234 billion! And that’s just this particular bank. Analysts predict up to a thousand smaller banks will fail within the next year, all guaranteed by the FDIC, whose signs, seen at every bank in the country, proudly proclaim they are “guaranteed by the full faith and credit of the United States Government,” by the FDIC- meaning YOU, the taxpayer. Do the numbers, folks, see for yourself how absolutely worthless that “guarantee” is, and in reality has always been. It’s all been a scam, courtesy of our pals at the “ain’t no Federal, ain’t no Reserves Board”...

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