So this story from Reuters made me queasy. Today they reported that the Federal Deposit Insurance Corporation (FDIC) may have to borrow money because of the number of bank failures the FDIC expects. So, what if Katrina wasn't a meteorological storm that pounded one area of the United States, but was a financial hurricane like the kind this country saw in the 1930's, a storm so large and powerful that it hits the entire country, that would be scary, right?
Would you think that your money would be/could be safe if your bank's insurance company is going broke? It's not something to think about, it's something to prepare for.
But from whom would the FDIC be borrowing money? According to the article:
Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported.
The Treasury Department?!?!? Talk about robbing Peter to pay Paul. The Treasury Department is us, people, it's the government. And the last I checked the U.S. government is in hock up to its eyes in war debt.
So, I ask you to finish this sentence: