Schumer guilty! … of Looking Down!!! [Updated]
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Central bankers and government connected economists have been telling us, for quite some time now, “Everything will be OK if you just don’t look down.” Senator Chuck Schumer sent out a letter warning of the shakiness of IndyMac which has now collapsed. Regulators who were supposed to prevent such collapses are blaming Schumer for causing it.
Another thing you’re not supposed to notice, where will all the billion$ pumped into to the banking system to keep it afloat utimately come from. In the case of IndyMac it’s no mystery – the taxpayers. 🙂 NPR, has been taking the line that it is that shareholders who will pay. They had an expert from the Wall Street Journal espousing this view. But who ultimately underwrites the FDIC? We’ll see how this shakes out.
In the case of Fannie Mae and Freddie Mac, which back half of all of the nations home mortgages, it’s clear that the guarantor is the taxpayer – i.e. you and me.
[Update: July 29, 2008] From DemocracyNow!: 2 More Banks Close as Crisis Widens
In banking news, federal regulators have shut down two banks in California and Nevada. First National Bank of Nevada and the Californian First Heritage Bank were both folded for lacking sufficient capital. The closures come two weeks after the collapse of the California bank IndyMac.
