More bad news for the Banking Industry

http://www.reuters.com/article/newsOne/idUSBNG28670420080827

The fact that the FDIC (which gets its funds from money paid in by the banks) might have to open a line of credit from the Treasury (which gets its funds from tax payers money), should be a very scary sign to the American people. Not only is it opening up the taxpayers to more liability, but it is also going to further squeeze the ailing banking industry since the FDIC plans on raising the rates they charge banks to repay the Treasury.

This is another example of what you get when you deregulate too much. People don't seem to get the concept of balance. I know the Libertarians and Republicans are all about deregulation, but it just doesn't work if its pushed too much. You need regulation to ensure that people aren't taking advantage of the systems in place (i.e. the subprime loan mess). These systems are too vital to our economy considering we've already outsourced much of our manufacturing to other countries. We need to regulate them to ensure they don't fail, which would probably cause the collapse of life as we know it in America. Unfortunately sometimes people do things for selfish reasons that are detrimental to others (i.e. Enron, the subprime mess, corporate pollution) which is why we need regulation in this country.