Sunday, March 8, 2009

60 Minutes – Your Bank Has Failed…

PROPAGANDA WARNING – "Because the FDIC wants you to see what happens..."

This piece views like a commercial for the FDIC… “Your money is safe and has the full backing of the United States Government.” Factual errors and half truths by Sheila Bair, such as stating that the money to save banks does not come from the taxpayers. This is incorrect as the fees collected have been spent and the FDIC’s balance sheet is nothing more than accounting entries made up of I.O.U.’s from the taxpayers.

So, if you view this as a propaganda piece and realize what’s going on, it’s informative to see how the process of secrecy to shut down failed banks works.

I think it’s interesting that the FDIC agents remark that the bank employees don’t really know what is going on. I would remark that they are correct about bank employees, but would add that the FDIC personnel don’t know all the facts either.

Also note how Bair sidesteps the issues of the bigger banks. She is not completely naïve, she understands that she’s playing a CONFIDENCE game and she is attempting to instill confidence. Although she knows the game and role she must play, I think she probably doesn’t realize the extent of the bad math and debt/ derivative permeation throughout the globe.

60 Minutes – Your Bank Has Failed (13 minutes)

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Related article: Bank Failure Friday – Freedom Bank no longer Free, FDIC seeks Funding through Fees…