Warning: To avoid having the feeling of your eyes glazing over and mind going numb because you think that this stuff is way too above your head, IT IS NOT!
Watch the video first and ONLY the first 60 seconds of this 5:37 minute video and you will say to yourself, "I actually DO understand what is happening!" and want to watch the rest. (This is really scary stuff to know)
CLICK ON: http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1111064
A CHALLENGE: I would love to hear your comments after viewing this blog. This will indicate how many of you are really getting what is happening to you or "you are too stupid" to understand as Washington says we all are and they will steal ALL of your tax money.
Now, here is the information behind this blog. It is stuff that Obama and all Washington knows about and thinks you are too stupid to understand:
As the Wall Street Journal reports this morning, in what are called a "loss-share" agreements, buyers of failed banks are getting billions of dollars in government guarantees to snatch up the bank's bad assets. To entice buyers, the Federal Deposit Insurance Corporation is offering to cover around 80 percent of the losses associated with buying a bank. The result, the WSJ points out, is a massive subsidy to the private equity industry, and a huge risk to the American taxpayer.
As bank failures have mounted this year, much has been made of the FDIC's dwindling Deposit Insurance Fund. But, as the WSJ reports, the FDIC's potential risk through loss-share agreements "is about six times the amount remaining in its fund that guarantees consumers' deposits."
Though the WSJ doesn't go so far as to say the enormous guarantees are, in fact, sweetheart deals, it's hard to imagine a better scenario for bank buyers. (Except maybe the FDIC offering to guarantee 100 percent of the total losses associated with buying a failed bank.) "The FDIC, assuming its traditional role, brokered a sale of the bank's deposits to BB&T Co."
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