“March 8 (Bloomberg) -- The Federal Deposit Insurance Corp. is trying to encourage public retirement funds that control more than $2 trillion to buy all or part of failed lenders, taking a more direct role in propping up the banking system, said people briefed on the matter.”
Time to face facts: The FDIC is broke and they are looking for a place to dump the crappy assets that they know will be coming in the door as they take over hundreds if not thousands of failed banks over the next 2 years. So what better place to dump them than in pension funds which are managed by minions of the financial system? That’s right, take the cash out of the pension funds and replace it with bad debt. If this debt were any good and if it were being offered at fire sale prices then there would be a bidding war for it but there isn’t so its not. People who have these pensions will wake up some day in the future only to find that the scammers have bled them dry. The Wimpy Economy is showing its true face. Anyone promised something in the future has less and less chance of receiving it every day. Wimpy never intended to repay all those fronted hamburgers either. If there is a way to cash out of any of these programs, the sooner the better IMO.
