"We were wrong. As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like."
The insurance premiums aren't really premiums at all, therefore. They're a tax by another name."
Betcha you didn't know that.
That's right folks - there is no FDIC insurance fund.
Just like there is no Social Security insurance fund, or Medicare insurance fund.
They are all accounting FICTIONS that our Congress has created and allowed because we keep demanding that they spend more than they have.
To keep us, and foreign bond investors (who must pony up $2 billion per day to keep this charade alive) from freaking out and saying "no mas!" they rob and steal every nickel from every nook and cranny they can so their "budget deficit" looks much smaller than it actually is.
Clinton never ran a budget surplus if you simply add back in the FICA receipts he stole to "balance his budget." Bush of course never even claimed to run a surplus. Every administration since the 1970s has played this game to one degree or another, and we, Idiot Nation, sit back and let it happen.
Quote from my guy from The Market Ticker Denninger.
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