They are robbing the FDIC to bail out the rich?
"Federal Deposit Insurance Corp. Chairman Sheila Bair said she expects her agency will finance as much as 0 billion in purchases of residential and commercial real estate loans."
I’m sorry, can some other please read this news story from yesterday very, very, very carefully, and tell me, does it or does it not explain that a private investor can put up 00 and acquire 0,000 worth of real estate with the government matching 00 and loaning ,000 from the FDIC?
http://news.yahoo.com/s/ap/20090324/ap_on_go_ca_st_pe/bank_rescue_88
So, for ,000, a private investor can acquire a 0,000 property, forget the ,000 matching grant, and slowly repay the government 2,000?
What happens if that investor defaults? Who covers the loan payments to the FDIC so that it will stay solvent?
Since when does the FDIC make billions in loans?
The last I read about the FDIC a few months ago said it did not have enough money then to cover everyone’s deposits if the banks all collapse.
Why then would it be tapped to send 0 billion out its doors on a dubious economic rescue plan with full understanding that the whole plan is a risk and may fail?
The rich bankers will get their money from the government loans as speculators and the naive rush to get these properties that they won’t be ablle to make money off of in this economy — lol, the banks cannot make money off of them, by what magic will the private investor using government money to get them from the banks be able to make money off them?
So, the banks and those who own them will be held up for awhile, but when the problem behind this economic mess is not truly addressed, they will run the risk of failing again and there will be no money in the FDIC to cover the consumer’s deposits? But the rich will have their money, courtesy of 0 billion from the FDIC?
Oh my.
Is that what is happening here?
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2 comments
muncie birder on July 6, 2009 at 8:01 pm
Not any private investor. Just the hedge funds and other very fat cats. The government is not in this for nickle and dime. They want investors that can buy a billion worth at a time. The idea is to make the rich richer at the expense of the tax payer of course. Unless I misunderstand this, which I very well might, I do not think the FDIC is involved. That agency is in business to absorb failed banks. Of course once a bank does fail the agency does sell the assets of the failed bank to another bank or rather maybe pay another bank to take them.
ferk12 on July 6, 2009 at 8:01 pm
It is not the RICH that are benefiting from anything or the BANKS that are actually BEING bailed out……it is the AVERAGE AMERICANS….YES YOURS AND MY NEIGHBORS AND FELLOW CITIZENS…..who failed to read the fine print and overleveraged themselves in purchasing assets that they couldn’t afford and had no business buying….and now put the keys in the mailbox and walk away…..WITH THE RICH AND BANKING INDUSTRY BEING THE SCAPEGOAT! Not one bank forced or forged anyone’s name on the dotted line…..remember that!!!! People, not banks, got GREEDY and consequently we are all paying for it…or will be