reply to post by mybigunit
I agree, but in terms of any money transfers to cover FDIC insurance it would be a sunk cost. In other words, the money that is used in the federal
budget is already designated to be spent somewhere. It will be spent on something, its just that instead of being spent on X other entitlement or
bureaucracy item, it will be transferred to the FDIC.
Of course as you know I'd prefer we not have any of this - the fdic, entitlements, or most of the bureaucracy. The FDIC is a moral hazard, because it
gives me all the incentive in the world to plow money into shaky banks that offer high interest rates. I think the good news is that most people scare
to easily and react to the media to quickly to see the benefit to doing this, so it probably doesn't result in much additional burden in the event of
a bank collapse.




