By John Galt
October 10, 2011 – 13:00 ET
Thanks to my friend, CalOkie, for forwarding the information on the FDIC closings from the past week (Click here or to the right of this page for updated charts-CALOKIE’S FDIC Bank Failure Data). The two of us entered into a discussion as to why the FDIC is closing their satellite offices around the nation and the official line is that there were not going to be that many more failures so the offices would not be needed.
Of course I thought about the “official” line and decided that if that were true, monkeys would start flying out of my butt any second now.
What is terrifying is the idea that they are going to allow upwards of 1000 plus insolvent institutions to operate through 2012 so the political elites can survive the election season and avoid the pain inflicted on local communities and businesses when these banks implode. Thus the only reason the FDIC is shutting those offices down, IN MY OPINION, is to save money in case Turbo Timmy needs to borrow from various government agencies at year end and to pacify the voters who are already angry at the regime in D.C. and both political parties.
Time will tell, but it is is not looking like anything from the vast list of problems incurred in 2007-2009 has been solved, cured, or repaired.