Another Way to Help Banks

The Federal Deposit Insurance Corporation, or FDIC, which insures bank deposits, has been making it tougher for private investors to invest in weak banks and thus help solve our current financial problems. The FDIC has been forcing legal responsibility on bank bailout investors who can have no influence in the actual management of those banks. That acts as a deterrent for would-be investors.

Now, finally, arrangements are being made so that private capital sources, other than banks, can take over troubled banking institutions.

It’s about time to permit private sources to resolve banking problems instead of relying on the intervention of the government. The latter ploy has not worked despite the rationale that only such bailouts are the solution to get us out of financial meltdowns.

Government solutions come with a steep price. Permanent government meddling and unspeakable debt. Plus Inflation.