FDIC Chairman person Sheila Bair began her tour de force on the financial news networks this morning link. We know, of course, that the FDIC insures on demand checking accounts up to $250K now. But the FDIC only has about $35 billion in actual reserves in which to draw from (or only about 7/10ths of a Madoff ponzi scheme). In the danger of sounding like a conspiracy theorist, why would the FDIC Chairman person need to “emphasis and re-emphasis” that banks are well-capitalized if they shouldn’t have been loaning out checking account money to begin with? Which brings up another question: if the banks are well-capitalized, why do they need to be bailed out to begin with?
It’s time to start guiding some rational individuals who haven’t yet become acquainted with Austrian Economics by connecting a few very visible dots for them.