Friday, March 5, 2010

Is The FDIC Brewing Its Own Bank Closure Storm?

Rumblings from the banking industry seem to indicate that the FDIC is getting ready to put the screws to banks. As a direct result of the actions of this federal government entity, private banks are refusing to lend, even to well-qualified clients.

. . . raise your hand if you remember President Obama saying he wanted banks to lend more money out. Keep your hand up if you think, when the public becomes more aware of this new phenomenon, Obama will blame the banks and try to move us even closer to a system where the .fed is the lender of only resort.

Who would want to be a banker, if the "time for profits" is "not now" for the forseeable future? Who can run a lending institution at a perpetual net loss? Hint: both answers are the same, and it rhymes with "hover meant."

You know who else nationalized the banking industry?

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