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.
My ignorance about such matters economic leaves most of my acquaintances thoroughly underwhelmed, but…
Do the banks considering such an arrangement actually believe that our government would be able to pay back the loans with dollars that would worth anything?
If I recall, we bailed out the “large banks” at no interest, but now the large banks, which have managed to unload their toxic waste thanks to our paper promises on unsuspecting doofuses are going to “help us” bail out smaller banks, presumably at interest. Did I get that correctly? I’m not surprised they are enthusiastic, but tell me again whom it is the government works for? Has there been a coup which has brought us under the dominion of JP Morgan? Or have the big banks been secretly nationalized, so this business about the big banks being bailed out by the fed which is being bailed out by the big banks is simply an accounting gimmick whereby the hot potato keeps changing hands long enough to some sucker to think its safe to take his money out of his mattress?