"The second Fed action is more alarming: banks are now allowed to use depositor's money to fund the operations of their non-bank affiliates.
"Your savings account is being used to prop up the trading operations of your bank's parent company, which not coincidentally is the source of the huge losses the industry has racked up this year.
Source: Title: Free market capitalism: A 'peek behind the curtain' URL Source: http://www.bloggingstocks.com/2008/ ... ism-a-peek-behind-the- curtain/
And then this? More on FDIC: http://market-ticker.denninger.net/
This, unfortunately, means that the FDIC's insurance fund (which doesn't really exist; it has been siphoned into the Treasury's general fund just like Social Security "deposits") is woefully inadequate, with some people now claiming that we need five hundred billion dollars, or more than ten times the FDIC's claimed "reserves", to cover the expected bank failure rate.
===related==
We keep hearing that "its all ok, and the government is here to help and solve the problems we face as a nation."
The Truth: Its all a house of cards.
EVEN THE FDIC:
"We were wrong. As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like."
The insurance premiums aren't really premiums at all, therefore. They're a tax by another name."
Betcha you didn't know that.
That's right folks - there is no FDIC insurance fund.
Just like there is no Social Security insurance fund, or Medicare insurance fund.
They are all accounting FICTIONS that our Congress has created and allowed because we keep demanding that they spend more than they have. "
What's all this talk about the bloody economy. I want to know about the damn lipstick, and..and..and I hear that McCain was a war hero. My friends, we're getting away from the important stuff. Lets get our thoughts straight here.
And he seems to honestly believe calling would have some effect.
I didn't get the impression he thought it would be effective, but rather it would be reminding them that we expect them to do their job. To the sound of deafening laughter.
Some time a ago some cynical wag wrote two letters to his congressman, one pro, one con to some political issue before Congress.
He received two answers, both advocating for each position. In a very veiled manner.
That I believe. I see no value in calling or writing, besides, they're getting out of town asap, and probably need to focus on their re-election campaigns.