FDIC, Krugman, Emanuel

Bob was telling me, after putting away SODUKO, that the FDIC insurance policy premiums of the banks jumped in multiples. He resented the good banks, the conservative ones, are having to pay for the bad banks, the idiots.

It seems as though the FIDC premium jump may just be starting.

Paul Krugman, an avowed liberal, Keynesian economist who writes for the devil, the New York Times, won a Nobel, whatever that is, and seems oddly in communication with the world. He has at least two blogs, as I see it. He is a happy Keynesian, sure of his belief.

In "Self Evident" he describes the "Geithner Put," the toxic asset auction. I recommend you visit the site and I won't try to recount the discussion; however, it is clear that in the coming auctions of toxic debts, those who will be happy are: banks, treasury, and private investors. Using a real world approach, he then says, so who will be unhappy: FDIC.

The plan gives the exposure to the FDIC. Nice to be able to just tell someone they will be your insurance company. So, the idiot banks will be relieved of their obligations and the good banks, who never engaged in idiot behavior, will be made to take on the idiocy cost.

This means, you and I will be taxed via our banking relationships to cover Citi etc. We are again the pawn of chess players who control all sides of any game. So, do not think this plan solves anything, it is just another tax on you and a free ride for the idiots, again. It is hidden tax on banks who will turn around and extract it from you mother, as best they can.

Krugman is not liked by the Obama people, by the way, as he wanders from the line. Rahm Emanuel, the Richelieu of Obama, publically cursed him out. This is not good for Krugman as Emanuel is a vicous, vindictive lad who studied dance at Sara Lawrence, which makes him fully qualified to tell Obama what to do.

Oh, I don't think I ever published this. At the time of the debate with McCain, when Bush was moving his bill to stabilize the financial system, McCain made a big show of going to D.C. and not being able to go to a debate. Obama didn't bite and said he would debate. Anyway, in the midst of all this, Obama's financial team met with him, including Buffet as I recall, and Obama said - Tell me the right thing to do, I can sell it.

Be very afraid.