While 99 percent of insured institutions meet the “well capitalized” criteria, the possibility remains that the fund could suffer insurance losses that are significantly higher than anticipated. The U.S. economy and the banking sector currently face a significant amount of uncertainty from ongoing housing sector problems, financial market turbulence and potentially weak prospects for consumer spending. These problems could lead to significantly higher loan losses and weaker earnings for insured institutions.It goes on to outline 10 specific questions that congress should ask FDIC officials. You can read the whole letter here.
The Nader blog post continues: "The day after Ralph sent out his warning, he was ridiculed in Congress. One member, Spencer Bachus, at a Congressional hearing, mentioned Ralph's letter and said point blank 'Our banks are well capitalized, our deposit insurance fund is . There's absolutely no factual basis for saying that there's not money there to pay.'"
Far be it for Nader or any of his supporters to gloat in the face of such a devastating financial crisis -- but for fucksake, how many times does this guy have to be right before we take him seriously? He was right about seatbelts forty years ago; he was right about unsafe cockpit doors before 9/11; and, once again, he's been right about the financial crisis over the past few months. I'm not saying you have to vote for him, or even that you have to like the fact that he's running for president -- but maybe we should listen to what he has to say? Not ridicule him on the floor of congress? Doesn't a lifetime of brilliant and tireless advocacy for citizen's rights -- and that is a phrase that could by no stretch of the imagination be used to describe any current member of congress -- doesn't that at least render him worthy of our respect? Because you know, ridiculing someone out of your own ignorance -- I'm looking at you, Spencer Bachus -- only makes you look like an ass.