Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.
The Connecticut Democrat's effort -- which comes in response to urging from FDIC Chairman Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner -- would give the FDIC access to more money to rebuild its fund that insures consumers' deposits, which have been hard hit by a string of bank failures.
I don't know why we care, as I was finally able to understand why it's ok yesterday after a conversation with a professor from Denton. In discussing this topic he related that he was happy with it as he "understands the economy". I asked him why it was ok to just print print print, what was backing this play money up, how the resultant inflation would affect us, etc.
Had a brief exchange on how "the people are giving him an 80% approval rating". I then asked him what he thought about the guys who actually understand money on wall street and the approval rating they've given him. Poor guy almost turned purple trying to answer...
Then he threw out some bs line to the effect of "when you throw $9 trillion around some of it has to stick!" I laughed and asked him how spending a ton of money he didn't have would get him out of debt. Then in reply to "where's it coming from?" he replied that we were "just borrowing it from future generations". I laughed again and asked how he could justify borrowing this make believe money. Not quite sure why but at that point he got really pissed off and left...
Lol. Fucking idiots are everywhere.