07-14-2008, 03:56 AM
Do you suppose it is more of our money devaluing than the price of oil rising?
The markets declined a bit this morning, but news of the Federal government (as opposed to the Federal Reserve - which is NOT part of the U.S. government) bailing out Freddy & Fanny (at least to some extent) has kept the bloodbath to a minimum for now. Tax payers step in and take the hit yet again. I suppose it doesn't matter the economy is so far out of balance now, I doubt it can be rescued.
Has anyone noticed that the funds for the FDIC "insurance" plans are only about several billion dollars and the amount of money the FDIC fund is supposed to insure is over several TRILLION? There is something like 1.2 cents per dollar of "insurance" funds to cover the money that is "safe in the bank". Of course with inflation running over 10% (the inflation they tell you about is "core" inflation which does not include fuel or food prices - like we aren't going to be using food or fuel!) anyway, with the actual inflation rate of over 10% if you take your money out of an interest bearing account you will lose it faster than by keeping it in the bank. However if the banks fail (anyone notice IndyMac last week?) then even though you lost 10% by taking your money out of the bank (at an annual rate) you will still have it available when everyone else is getting their "insured" funds of 1.2 cents per dollar from the FDIC. Which is again, the taxpayers ultimately, isn't it?
Considering how often the taxpayers foot the bill and how poorly they are doing these days perhaps the only sensible thing to do is buy food while you still have any money left.
The markets declined a bit this morning, but news of the Federal government (as opposed to the Federal Reserve - which is NOT part of the U.S. government) bailing out Freddy & Fanny (at least to some extent) has kept the bloodbath to a minimum for now. Tax payers step in and take the hit yet again. I suppose it doesn't matter the economy is so far out of balance now, I doubt it can be rescued.
Has anyone noticed that the funds for the FDIC "insurance" plans are only about several billion dollars and the amount of money the FDIC fund is supposed to insure is over several TRILLION? There is something like 1.2 cents per dollar of "insurance" funds to cover the money that is "safe in the bank". Of course with inflation running over 10% (the inflation they tell you about is "core" inflation which does not include fuel or food prices - like we aren't going to be using food or fuel!) anyway, with the actual inflation rate of over 10% if you take your money out of an interest bearing account you will lose it faster than by keeping it in the bank. However if the banks fail (anyone notice IndyMac last week?) then even though you lost 10% by taking your money out of the bank (at an annual rate) you will still have it available when everyone else is getting their "insured" funds of 1.2 cents per dollar from the FDIC. Which is again, the taxpayers ultimately, isn't it?
Considering how often the taxpayers foot the bill and how poorly they are doing these days perhaps the only sensible thing to do is buy food while you still have any money left.
Kurt Wilson