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The Coming Deposit Insurance (FDIC) Bailout

Another lesson that federal guarantees aren't free.

Americans are about to re-learn that bank deposit insurance isn't free, even as Washington is doing its best to delay the coming bailout. The banking system and the federal fisc would both be better off in the long run if the political class owned up to the reality.

How the Servant Became a Predator: Finance's Five Fatal Flaws by William K. Black


William K. Black
Assoc. Professor, Univ. of Missouri, Kansas City; Sr. was the chief prosecutor of the fraud committed during the S&L debacle in the 1980s

Interview with Elizabeth Warren (Congressional Oversight Officer of the Banking Bailout aka TARP)

Voices of Power: Elizabeth Warren

By Lois Romano / Washington Post

LOIS ROMANO: Welcome, Elizabeth Warren, Chairman of the Congressional Oversight Committee that is tasked with scrutinizing how the Treasury Department has spent $700 billion to shore up our failing financial institutions. Thanks for joining us today.

The Dominance of the Financial Sector Has Become a Mortal Danger to Our Economic Security

Robert Creamer
Political organizer, strategist and author
Posted: October 12, 2009 10:01 AM

Read more at:

The Securitization Boondoggle By: Mike_Whitney

Readers: This is a very basic and very clear description of the securitization process, why it is a major problem, and why the efforts to re-establish the process as it was by Bernake and the mogouls of Wall Street is a very bad idea. Unfortunately, it will be this effort which will continue the collapse of the global economy. This a perfect example of the fallacy of wealth supposedly making a person or persons smart.

Oct 10, 2009 - 05:56 AM


Readers: Lester Brown is a long time sustainability advocate and has been involved in many efforts in this direction. The way he is using the word "Ponzi" is very close to the analytical way that Hyman Minsky uses it. In effect the difference between a Ponzi scheme and a non-ponzi scheme is a matter of how the process is managed and of course its transparency for those involved. Lacking the actual accountability and transparency the process relies upon fraudulent delusions of limitless wealth extraction.

5 Ways the Government Used Our Money to Save Big Banks and Screw Us

By Nomi Prins and Christopher Hayes, The Nation. Alternet
Posted September 26, 2009

The government hasn't exactly been forthcoming about how
it has made buckets of money available to the banking
sector. But here's what really happened.

As we mark the end of the first year of the financial
bailout, the public seems to regard the government's

Inflation: Too much money chasing too few goods? – Hardly! by Robert Poteat via the AMI

Readers: this the lead essay of the sixth issue of the American Monetary Institute Bulletin, The Money Scene. At the AMI site link ( you can add your comments to that blog

The essay begins here: That more money is available than goods is a nearly axiomatic definition of inflation in economic texts, media, and politics. Empirical data from direct observation indicates it is not true in the current economic environment.  

The Demise of the Dollar

Readers: when this happens look for major repercussion on both Wall Street and in the auctioning of US Treasury Bonds. The high and mighty is about to be kicked to the curb. I don't like being on the down stream end of this, and it has been inevitable since at least 1973. This re-alignment will also have a major effect on on the US-Israel relationship.  FYI this article has been criticized in part because the author is typically a political commentator focusing on the middle east, and is not a macro-level economist.

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