FDIC Farce

Has anyone else noticed that the Congress has not yet passed a bailout bill? Didn't they say that if they didn't get one passed by Friday that the Economy was going to grind to a halt, and the world would end, or something of that nature? Has anyone noticed the economy grinding to a halt or the world coming to an end? Right, me either. But they keep assuring us that it really will grind to a halt if we don't let them do this $750,000,000,000 bailout... eventually. Truth is that, yes, there will be some pain if Congress does nothing, but it won't be the end. This is a case where some short term pain will be good for us all, and a short term band aide fix could bring the economy to it's knees... eventually.

The latest thing that they keep wanting to throw at us is an increase in the covered amount of deposits by the FDIC (Federal Deposit Insurance Corp) from the current 100 Grand to 250 Grand. Both Senator McCain and Senator Obama have signed off on this as a good idea, so I can't hammer either one on this issue... but I can hammer them both. This means that if you have up to 100 grand in the bank, per account, the Government is going to guarantee that money to you in the event that your bank collapses. Not that most of us have 100 grand in the bank, so I'm not so sure how this applies to us in any case, but that's not the main point.

What needs to be understood here is that the FDIC is broke. The most recent available figures that I'm aware of show that the FDIC has $1.50 available for every $100.00 covered, that's 1.5%, so if more than 1.5% of the accounts in the US were in danger, at present, the FDIC could do nothing about it, so raising the limit does what? Other than lower the percentage that they are actually able to cover?

The truth is that this is just another ploy, a meaningless play to try to get us to feel better about the things that they are doing, but really, even if it did apply to most of us, and even if the FDIC did have enough money to cover all of the deposits, it's still totally disassociated from the issue of the current economic problems. It simply doesn't apply, it's just more smoke and mirrors to try to distract us from what they are really tyring to do, which are things that could cripple our economy, and our nation, in the coming years.

It's not too late to put pressure on your elected representatives in Congress to put a stop to all this madness. Just call or email and make it clear, politely of course, that if they vote for this bill, they are fired, that you, nor anyone you know, will vote for them in any election, ever again, for anything. Contact them today if possible.