Monday, January 18, 2010

Credit Union? Dodge the exploding hair plugs

Three more banks went under Friday, these were by today’s standards quite small and only cost us a couple of hundred million to close. That amount of money would go a long ways in Haiti. Nobody seems to even blink about spending that amount on failed banks. The only notice people pay to it is make sure that the FDIC says that they can still use their debit cards. That money is gone, long ago stolen by Reaganomics policies and it’s only the tip of the iceberg.

The larger of Friday’s three banks was un-saleable or rather they couldn’t give it away. The FDIC doesn’t really sell off any of these failed institutions but rather it offers a sweet pot of incentives and guarantees to another more or less healthy bank to take the whole works off the Government’s hands. The shareholders lose everything and that brings up an opportunity that will never be considered an option.

Since the shareholders are wiped out, the failed bank is suddenly not owned by anybody but it still has considerable assets that the FDIC gives away to another set of shareholders after taking the losses on our back. (technically it’s not tax money, but who are they kidding) They could simply convert each of these banks into a credit union and give each bank customer a share.

It wouldn’t really cost any more than what they are doing now. Try suggesting this to your Congressman and watch his hair plugs explode. Of course you will probably need to explain it all to him at length, unless he’s on the banking committee all you’re likely to get is a blank stare.