FDIC Bankrupt? Uh huh.

From CNBC’s “Breaking News” banner:

FDIC to Ask Banks to Pre-Pay Premiums to Inject Cash Into Deposit Insurance Fund (story developing)


Somehow I suspect it will be something like this:

(Gee, I need to graft Geithner’s head on that one….. along with Bair!)

Anyway, the point stands.  The FDIC is clearly out of money, and this is nothing more than yet another legalized accounting fraud game, where they’ll get “the money” now but allow the banks to “recognize” that “charge” over time.

Gee, what happens if the bank doesn’t have any money somewhere between now and then and fails?

Oh we won’t bother with that, right?  Remember, there will be no more failures – and just like in Oz, if you say it enough times it might even become true!