This could explain a lot about shadow inventory

[an]

Based on that chart, in 1991, FDIC went negative. How can that be? Haven’t they been printing money out of thin air for awhile now?

[patientrenter]

Keeping track of funds for the FDIC makes sense when a few banks go bust here and there. But when you prevent normal recessions from occurring for over 20 years, and you blow air into every promising small bubble you see floating by, and you finally have to deal with the pent-up consequences, then the FDIC fund becomes just another loose change drawer for the Federal govt.

Who cares how much exactly is in the loose change drawer? If it empties, it will be refilled promptly from the endless river of future taxpayer payments.

[patientrenter]

Keeping track of funds for the FDIC makes sense when a few banks go bust here and there. But when you prevent normal recessions from occurring for over 20 years, and you blow air into every promising small bubble you see floating by, and you finally have to deal with the pent-up consequences, then the FDIC fund becomes just another loose change drawer for the Federal govt.

Who cares how much exactly is in the loose change drawer? If it empties, it will be refilled promptly from the endless river of future taxpayer payments.

[patientrenter]

Keeping track of funds for the FDIC makes sense when a few banks go bust here and there. But when you prevent normal recessions from occurring for over 20 years, and you blow air into every promising small bubble you see floating by, and you finally have to deal with the pent-up consequences, then the FDIC fund becomes just another loose change drawer for the Federal govt.

Who cares how much exactly is in the loose change drawer? If it empties, it will be refilled promptly from the endless river of future taxpayer payments.

[patientrenter]

Keeping track of funds for the FDIC makes sense when a few banks go bust here and there. But when you prevent normal recessions from occurring for over 20 years, and you blow air into every promising small bubble you see floating by, and you finally have to deal with the pent-up consequences, then the FDIC fund becomes just another loose change drawer for the Federal govt.

Who cares how much exactly is in the loose change drawer? If it empties, it will be refilled promptly from the endless river of future taxpayer payments.

[patientrenter]

Keeping track of funds for the FDIC makes sense when a few banks go bust here and there. But when you prevent normal recessions from occurring for over 20 years, and you blow air into every promising small bubble you see floating by, and you finally have to deal with the pent-up consequences, then the FDIC fund becomes just another loose change drawer for the Federal govt.

Who cares how much exactly is in the loose change drawer? If it empties, it will be refilled promptly from the endless river of future taxpayer payments.

[4plexowner]

I agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t

“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!

This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”

[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]

http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html

“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”

I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence

edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t

[4plexowner]

I agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t

“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!

This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”

[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]

http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html

“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”

I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence

edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t

[4plexowner]

I agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t

“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!

This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”

[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]

http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html

“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”

I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence

edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t

[4plexowner]

I agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t

“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!

This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”

[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]

http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html

“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”

I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence

edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t

[4plexowner]

I agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t

“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!

This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”

[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]

http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html

“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”

I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence

edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t

[zzz]

The idea of my $$$ continuing to devalue along with banks failing makes me want to go out a buy a house on a huge lot and build out a large refridgerated shed. Start planting a massive garden. Buy a few guns. My thinking is that if the shit hits the fan and a massive banking failure occurs, at least I have a roof over my head and food for years.

Seriously, while I may not go the route of guns and food storage, it does make me want to park my money into a physical asset. The easiest place would be a house which has a useful purpose versus something like gold, which isn’t shelter and isn’t something I can eat.

[zzz]

The idea of my $$$ continuing to devalue along with banks failing makes me want to go out a buy a house on a huge lot and build out a large refridgerated shed. Start planting a massive garden. Buy a few guns. My thinking is that if the shit hits the fan and a massive banking failure occurs, at least I have a roof over my head and food for years.

Seriously, while I may not go the route of guns and food storage, it does make me want to park my money into a physical asset. The easiest place would be a house which has a useful purpose versus something like gold, which isn’t shelter and isn’t something I can eat.

[zzz]

The idea of my $$$ continuing to devalue along with banks failing makes me want to go out a buy a house on a huge lot and build out a large refridgerated shed. Start planting a massive garden. Buy a few guns. My thinking is that if the shit hits the fan and a massive banking failure occurs, at least I have a roof over my head and food for years.

Seriously, while I may not go the route of guns and food storage, it does make me want to park my money into a physical asset. The easiest place would be a house which has a useful purpose versus something like gold, which isn’t shelter and isn’t something I can eat.

[zzz]

The idea of my $$$ continuing to devalue along with banks failing makes me want to go out a buy a house on a huge lot and build out a large refridgerated shed. Start planting a massive garden. Buy a few guns. My thinking is that if the shit hits the fan and a massive banking failure occurs, at least I have a roof over my head and food for years.

Seriously, while I may not go the route of guns and food storage, it does make me want to park my money into a physical asset. The easiest place would be a house which has a useful purpose versus something like gold, which isn’t shelter and isn’t something I can eat.

[Author]

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