A late post by a distracted and nervous student

http://www.bloomberg.com/apps/news?pid=20601170&refer=h

The economy, what on earth has happened to our system? The insurers are are beginning to need insurance. According to this article, the FDIC is going to run out of money if these current trends continue. What does this mean to the average american? What does this mean to the people the who didn't take out loans that they could not afford, and the people that the government will not race to bail out and give executive packages to?



It won't take many more failures before the FDIC itself runs out of money. The agency had $45.2 billion in its coffers as of June 30, far short of the $200 billion Whalen says it will need to pay claims by the end of next year. The U.S. Treasury will almost certainly come to the rescue.



That means a taxpayer bailout might be next. With the $700 billion Wall Street bailout in the works, how much more will something like this cost? The prediction is another $400 billion dollars in emergency federal money. The FDIC had originally thought that it would only cost $1 billion to cover bank collapses in 2008.



It seems to me that this is a result of poor planning and no functioning oversight that worked correctly. I also heard a report that said the insurance claims from Ike may begin to shut down home insurance companies because they could not afford the claims. I might not understand the full ins and outs of the economic crisis, but why do we encourage our people as a nation to spend money they don't have; then complain when our government does it? Now we plan on doing the same thing again to fix the problems? It appears that the smooth waters have just become white and very dangerous.

DRUDGE REPORT 2008®

DRUDGE REPORT 2008® I reccomend this for all people intersted in a good read.