Talk is Cheap

September 29, 2008

I am no economic expert. At the risk of being too simplistic, however, I have to ask a few questions. Is it true that until this year, since the FDIC has been in existence, that despite its guarantee of up to $100,000 per deposit, no one had lost his deposit money in an FDIC insured bank?

Earlier this year when the “run” began on a few Western banks, obviously the vast majority of customers withdrawing their money had less than $100,000- that is, their money was safe. Most people with more than $100,000 name other people on their account to increase the FDIC coverage to $200,000, $300,000, etc. Knowing that these banks were in trouble, why couldn’t George Bush or Hank Paulson talk to the public and remind these people that their funds were insured? Furthermore, why couldn’t they have the FDIC raise their coverage to $200,000 or better yet, guarantee, temporarily, any amount? This would have temporarily averted the catastrophe that ensued, would it not?

We seem to have a President with no understanding of simple thought processes. Is he so unstable and so afraid to face the American people that he would not act? Was he afraid to admit that he had failed the country again and again and again, and that, unbelievably, he had actually brought down the entire economic world? Does the man who laughed at all his critics, who talked to the wrong “Father,” have anyone to talk to now? Talk is cheap, but it could have gone a long way!!

Allen Finkelstein, D.O.