Sheila is a friend of mine. She consistently does things that make me money shorting our financial system. So don't get me wrong, I don't want her to heed my advice. But unlike our current crop of insanely selfish, self-righteous mega-borrowers, I actually care about the debt they leave our children.
My advice? Sheila, stop feeding the bears.
Why in God's name would any thinking person borrow from broke banks, especially to pay bills associated with more bank breakage. Sheila has a subprime mentality in a post-subprime world.
Q: What will borrowing 3 years of insurance premiums do to the private FDIC's insurance fund?
A: Severely deplete it.
Why? Because it will raise $45B and cause at least 10% of the banks on the FDIC's own rosy $450B ailing list to go under (a list that our profit-driven government refuses to share with its owner citizens). Then, big surprise, the FDIC is still broke, but now with no income. The private FDIC's bankruptcy is our problem, it is not our solution.
It's almost like - Shiela is getting advice from people who make tax-payer-guaranteed money by loaning paper to our childish government officials. Hmmmm, I wonder.... ... .. .
Wednesday, September 30, 2009
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