Question For Dennis

[irishbobcat]

While I don't like tapping into short or long terms treasury loans, they must be made now to restore public faith andd confidence in a shaky maket. As FDR said, The only thing we have to fear is fear itself.

I do believe we will need tighter strings in the future so America is not exposed to any further overgrown influence of corporate authorities.

Dennis Spisak-Green Party Candidate for Congress-6th District

[Towntalk]

As you well know, our economic news is, to say the very least bleak and getting worse, and today we learn that the Federal Deposit Insurance Corporation, FDIC funds are dwindling due to all the bank failures.

"The Federal Deposit Insurance Corp., whose insurance fund has slipped below the
minimum target level set by Congress, could be forced to tap tax dollars through
a Treasury Department loan if Washington Mutual Inc., the nation's largest
thrift, or another struggling rival fails, economists and industry analysts said
Tuesday."

But fear is growing on Main Street as well as Wall Street about the likelihood
of multiple bank failures and the strain that would put on the FDIC.

If you are so fortunate to be elected to Congress, what would your position be on this issue?

At this point, there is little chance of there being a wide scale bank run as happened in 1929, but we are told:

"If the FDIC doesn't have enough cash to cover the initial costs of a bank or
thrift failure, one option would be short-term loans from the Treasury. That
last happened in 1991-92, during the last part of the savings and loan crisis,
when the FDIC borrowed $15.1 billion from the Treasury and repaid it with
interest about a year later.
Based on projections of possible scenarios of bank failures, "between the
(insurance) fund that we have now and our ability to draw on the resources of
the industry ... we do have the resources" needed, Murton said Tuesday."