Uncle Sol Starting a thought farm

Economy in Recovery

I just read this piece and had to post something about the ridiculous system our Federal Government and central bank are creating. We keep hearing in the news and from our President and other politicians that the economy is in recovery, while at the same time unemployment is high and the government is spending trillions to prop up their statistics in measuring economic activity (GDP). In the mean time, a Nevada credit union is paying its depositors to withdraw their money because they can't afford to keep it on hand. From Mish's Global Economic Trend Analysis:

The National Credit Union Administration (NCUA) and FDIC parasites siphon off deposit insurance money from good institutions not willing to take risks, to support institutions taking excessive risks.

In turn, banks and credit unions sitting with high levels of cash lose money on deposits and the customers make zero percent interest, thanks to the Bernanke Fed holding interest rates at zero.

Priceless.

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