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Thank God He’s Not Popular!

It’s a lucky thing for this country that President Bush has a 28% approval rating and is widely distrusted by all but diehard Republicans. Otherwise his prime-time assertion of:

More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically. And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors, and millions of Americans could lose their jobs. Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And ultimately, our country could experience a long and painful recession.

Could have started a run on deposits. While I disagree with the Phil Gramm view that all of our economic troubles are in our heads, there is a place for psychology. If people start to really fear, without hard evidence, that their bank is ripe for failure, they’ll take their money out.  And if enough people take their money out of their local banks, those banks will fail regardless of their loan portfolio. The above was irresponsible unless the President has evidence to the contrary, then he needs to share.

He could have at least talked about the FDIC and how it insures all savings and checking accounts for at least $100,000. He could have told people about the Bank Find feature at FDIC at http://www2.fdic.gov/idasp/main_bankfind.asp where people can get current and past information on their bank. And possibly peace of mind. Or an informed opinion of the risks of keeping money there.

Anything but ginning up fear for his super giveaway.  But then ginning up fear seems to be President Bush’s strong suit.

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