Wednesday, October 01, 2008
Increasing FDIC Insurance = False Bravado
Right now Congress and the pandering Presidential candidates are proposing to increase the FDIC secured deposit limit from $100,000 to $250,000 per account (or is it per Social Security number listed?).
They are proposing this DESPITE the fact that the FDIC has no money; and DESPITE the fact that there are hundreds of banks out there teetering on the edge of failure.
This is a rhetorical, political ruse. It's an intentional misdirection designed to get the public focused on *intentions* rather that *capabilities*. The fact is, the government doesn't have enough money or oversight to protect the cash deposits of everyone. (Unless, of course, they prime up the printing presses.)
Increasing the limit to $250,000 is a laughably transparent gesture.
Here's the apropos analogy - remember when Fannie Mae increased the size limit on loans it would write from $417,000 to $729,750?
That was passed only last year - that is one year BEFORE the Agencies bankruptcy/bailout.
They said that raising the conforming-loan limit would reduce jumbo mortgage rates and help the housing market. Yeah, didn't happen. Mark my words - this jawboning to increase the FDIC limit is a sign of WEAKNESS, as sign of desperation, not an indication of strength.
Alright, so I did a google image search of bravado and all that came up was "Bravado Maternity Underwear".
Don't bust my chops; even Will Durant ranked *mom* as the highest form of female beauty. That's right, the M-I-L-F is hardly a trendy fetish - just like the other one I blogged about.