Tuesday, September 30, 2008

Me, too

McCain says, "Me, too," about Obama's FDIC insurance increase. McCNN leads with McCain.


So, why is $250,000 of FDIC deposit insurance an obvious idea? CNN doesn't bother to say, but the goal is to prevent a bank run. We're already in a deeply dry credit market. A run could not only kill banks that are basically healthy, it could also tighten credit even further as more and more people and institutions flee risk into cash or T-bills, where they are no longer loanable to stimulate business activity.

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