"Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government.
"Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.
"The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune."
See the rest of the story here. See Memeorandum for commentary.
Ha interesting how things are starting to come full circle. I distinctly remember 6-7 months ago in one of my posts I took a shot at the articles being put on on this site saying you guys have no clue what's going on and among other things I said that the FDIC is going broke to which your faithful readers tried to tell me I was wrong. If giving the public the cold hard truth is what you really care about I'd suggest someone on here get a basic crash course in economics and/or read the federalist papers. From a historical perspective all the problems we're dealing with AREN'T THAT NEW, once you understand cause and effect it's somewhat predictable.
Posted by: Steve Bandoh | September 23, 2009 at 10:17 AM