Is the U.S. Government too big to fail? [Bloomberg][Mr. Mortgage]
"Is that the button?"
Can the government of the U.S. backstop 1) an endless war in Iraq, 2) the ballooning 5T national debt, 3) doubled that again to backstop the imminent collapse of Fannie and Freddie, as well as 4) the resulting banking failures with FDIC and NCUA deposit insurance?
And who (gulp) gets to pay for that? And how?
Just like, wondering.
When first starting to learn to invest, factoring into my decision-making process was the presence of deposit insurance. This was reassuring, certainly more so than a mattress. “Its FDIC-insured” said the nice man at the bank when I purchased a CD, way back in the 1980′s. “If this institution fails, the government gurantees you will still get your money. And we both know the government isn’t going anywhere.”
We are so screwed.
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“It takes a collection of keen minds and sub rosa influence to gradually transform a country from a net exporter with a strong manufacturing base to a FIRE economy and net importer, and then do abolutely nothing to educate it’s ordinary citizens about the importance of having an understanding of even their own basic finances. Well done.” -Paco Bell
