And you are here why?

Most people have one of three perspectives on the FDIC U.N. sponsored gummint agency, that makes black helicopters for use by the Trilateral Commission Something to do with medicine approval? Something to do with regulating banks? If you ignore the Trilateral wingnuts, and the numb-nuts who mix the FDA and the FDIC up, you have the vast majority of people out there who realize that the FDIC has something to do with banks, but no real idea what. As it turns out, there is actually a perfectly valid reason for the existence of the FDIC - and it has to do with Banks, and Nash Equilibrium . To put it simply, a Nash Equilibrium is the equivalent of a self-reinforcing law, i.e., one that nobody has an incentive to break, despite the absence of a police force , because you end up worse off breaking it than if you don't. Or ask XKCD puts it "Huh? Whut?" " What on earth does the above have to do with the banks?" I'm glad  you asked. Consider ...

(The Chair of the FDIC.  That Sheila Blair) Shes got a wonderful op-ed going at The Washington Post .  Excerpts below, but go read it ! [...]For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.   Under my plan, each American household could borrow $10 million from the Fed at zero interest. The more conservative among us can take that money and buy 10-year Treasury bonds. At the current 2 percent annual interest rate, we can pocket a nice $200,000 a year to live on. The more adventuresome can buy 10-year Greek debt at 21 percent, for an annual income of $2.1 million. Or if Greece is a little too risky for you, go with Portugal, at about 12 percent, or $1.2 million dollars a year. (No sense ...