tvb wrote:Jeff, The FDIC is self-funded by the banks themselves.
As far as failing, spend a little more time studying rather than ranting. They fail due to greed - greed that previously was stunted by very effective bank regulations which disappeared under Reagan. Aren't you one for little or no regulation and just letting banks run amok? I would suggest you go and read some of Paul Krugman's writing; he writes in a very easy to understand way so it should be an easy read for you. Or, maybe you think you are smarter than the winner of the Nobel Prize in Economics?
Those regulations you love so much force banks to lend out at 10:1. And if they FDIC is self funded, then why are they bankrupt? And where will the short fall be made up from?
The greed wasn't stunted, the money machine was cranked up to keep them solvent. Same as what's going to happen today.
As far as Krugman goes, I've read some of his stuff, and yes, I think I am smarter than him.
How about you read some (Nobel prize winner)Hayek and then we can talk.