This issue was known long ago. Namely that the FDIC fund didn't have enough to cover the expected losses that were going to occur over the next few years. The solution is to borrow money from the banks they are supposed to insure? Isn't this like your car insurance company borrowing money from you in case you file a claim and need cash? I'm not sure why this isn't a bigger story. Perhaps because the public has just come to expect that we'll print/borrow whatever we have to in order to stave off problems. The question remains, how much can we borrow? Where is the end? By the time you figure that question out it's too late.
Who's wagging who? Be prepared for a banana republic roller coaster ride.
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