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DEBT: Accountability needed for FDIC insured

Letter by Terry Johnson, Tacoma on May 18, 2012 at 12:22 pm with 9 Comments »
May 18, 2012 2:42 pm

Re: “Fix government spending, not JP Morgan” (letter, 5-17).

The writer complains about the “big-government types” like President Obama wasting millions of dollars on “nitwit” ideas that have made our country into a nation of “loafers” waiting for their next paycheck.

Let’s examine some of the facts. While JP Morgan is a public company, it is also backed by the government’s FDIC program that covers their hedges (code for gambling) with institutions’ and individuals’ monies. So when it comes looking for a bailout, naturally the need for accountability is obvious.

Even the Swiss government had to bail out one of its largest banks, UBS, back in 2008 because of the bank’s risk-taking. Maybe governments should let these behemoths fail and just lend to the loafers who pay taxes and don’t cost the government “billions” of dollars.

Leave a comment Comments → 9
  1. philichi says:

    There was an old saying in the financial world. The A students work at Goldman, JP Morgan and Morgan Stanley. The C and D students work for rating agencies and government.

    This means that C and D students will be regulating the A students. Good luck with that.

  2. concernedtacoma7 says:

    A hedge is a way to minimize and balance risk. Nice try.

    And it was JP Morgan’s money, not individual depositers. Again, nice try.

    And only loan to those that pay taxes? SO GE is out. 49.5% of federal income tax payers are out. GM is out.

    The more govt sticks their fingers in something the worse it gets. Progressives will never learn that lesson.

  3. blakeshouse says:

    starting in Kindergarten and all the way thru and including college the main lessons taught by the communist staff isgimme gimme gimme, I am entitled. The sooner the teat dries up the sooner we will become the nation once lauded as the best on earth.

  4. And the rightists prove….again…they know nothing of the economy, banking or even how our Govt. works!
    Why would anyone vote for one of them?

  5. andersonbill says:

    Sorry Mr. Johnson, but you didn’t check the “facts” very well. The Federal Deposit “Insurance” Corporation (FDIC) “insures” a banks deposits and not the banks own money, which is what Chase lost: it’s own money. Further, the FDIC never bailed out anyone, the bailout was accomplished by investing TARP money, not the insurance fund managed by the FDIC. The FDIC, however, will seize a bank (think WaMu)and sell the assets.

    And finally, the Swiss “helped” to bailout UBS modest invest of capital (aprox. 9% ownership) and a loan. UBS was in trouble because, wait for it, they had invested in the US mortgage backed securities that the chuckleheads from WaMu and Countrywide created. Go figure…

  6. Austerity is pre-Great Depression economics and is destroying Europe and the US.

    Me spending less in an economy that is driven by consumer spending may help me in the short term, but a lot of people spending less because they have no jobs will destroy the Nation.

    Which seems to be what the GOP wants to do.

    Courts that oversee things are know as activist courts.


    Debt without income leads to seizers of real property and attachment of current and future earnings.

    Your math skills are acceptable, unlike CT7 who has a super-deficiency of knowledge and skills.

  7. Vox_clamantis_in_deserto says:

    Who’s “Larry”?

  8. The voice of reason crying in the wilderness.

  9. concernedtacoma7 says:

    Funniest thing I read all day. Thanks X!

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