The BIG unwinding.........from Rico

FDIC. The Federal Deposit Insurance Corporation. People take this to mean that their hard-earned money is "safe" when deposited in their bank. Why "the full faith and credit of the United States" says it is so.

Let's talk about "leverage." Then let's try to grasp objective reality with our opposible thumbs.

The FDIC currently "insures" $13 trillion in total asets with a fund that is insolvent. This is truly maximum leverage. Lehman Brothers would positively weep...had they not been wiped-out by a puny (in comparison) leverage problem. Insuring assets with no assets. Great. Sure. Wonderful idea. Works for me! How about you?

If this "fractional banking" thing unwinds, it'll be very ugly indeed....unless inflation wipes out your money first. But wait! It's fugly either way!