FDIC to "educate" the public

They want to school us with half-truths and you know half-truths are as good as lies.

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Education? Think Again.

Here's an interesting statement from the article. " The FDIC also plans to begin airing public service announcements as part of a public education campaign on the nation's deposit insurance program. "

Rest assured that "education" is likely to be extremely if not grossly misleading. I can write it myself. Here goes:

"The banking system is sound. No person has ever lost a dime in insured deposits".

There will be no mention of points 24 and 25 of You Know The Banking System Is Unsound When.... . Here are those points:

24. There is roughly $6.84 Trillion in bank deposits. $2.60 Trillion of that is uninsured. There is only $53 billion in FDIC insurance to cover $6.84 Trillion in bank deposits. Indymac will eat up roughly $8 billion of that.

25. Of the $6.84 Trillion in bank deposits, the total cash on hand at banks is a mere $273.7 Billion. Where is the rest of the loot? The answer is in off balance sheet SIVs, imploding commercial real estate deals, Alt-A liar loans, Fannie Mae and Freddie Mac bonds, toggle bonds where debt is amazingly paid back with more debt, and all sorts of other silly (and arguably fraudulent) financial wizardry schemes that have bank and brokerage firms leveraged at 30-1 or more. Those loans cannot be paid back.

Furthermore there is likely to be no mention by Shela Bair of the moral hazard of FDIC insurance in that "education" process. And make no mistake about it, FDIC insurance is an extreme moral hazard.
More at: http://www.marketoracle.c...

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Ron Paul would just come out and mince no words.
http://www.pollingmatrix....