Proposals on Bank Reform
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Who would insure a faltering business without regard to either the risk involved or the acumen of the people running the business? What idiot would charge a pittance for the insurance, thereby guaranteeing heavy losses for his company? What moron would ignore years of warning about the impending financial collapse of his customers? The answer, of course, is Uncle Sam.
The amount insured per savings account went from $10,000 to $20,000 to $40,000 to $100,000 within 10 years, causing a huge influx of hot money to flow into the banking system seeking maximum return with insured zero risk. Of course the government was insuring with our money, not “its” money. And the result, the biggest financial scandal in U.S. history is scarcely in the news today.
Will the taxpayer just sit meekly by for this abuse? What about the accountability of the President, vice president and Congress who allowed this to happen?
And when will Congress lower the amount of accounts insured to a more reasonable $10,000, or cancel the government insurance altogether, so that this abuse will not continue to happen?
Is the working American public a sleeping giant or just sleeping?
LYNN BADLER, San Diego
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