Have I got a deal for you! My friend George has gone bankrupt, just plain dead broke. His business has been closed by the government; his stores are shuttered. It's all over for George. And now is a great time for you to invest your savings in George's business. What? You think I'm nuts?
Well, the FDIC (Federal Deposit Insurance Corporation), which is running desperately short of money because of the ever-growing number of bank failures, now wants public pension funds to invest their money in failed banks. Hello? Why would anyone, much less soon-to-be retirees, buy a failed bank? Isn't the adjective "failed" a pretty good indication of what you would be buying--namely, crap?
This is the first step in what is clearly going to be the eventual nationalization of pensions funds--public funds, private funds, 401Ks, IRAs, etc. The government is dead broke; apparently its recent Treasury bond sales have been mostly to the Fed as fewer and fewer chumps want to buy US government debt. So where will the government lay its hands on money to prop-up tottering banks? Your pension, that's where.
Read it here
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