zerohedge.com / Mark J. Grant / March 14, 2013, 08:20 -0400
Three sticks and three chances for a poke in the eye. On the other hand they could be kindling for the fire or perhaps the first ingredients of alphabet soup. You see, this is what makes things so tough; we all stare at the same things, the same events and reach wildly different conclusions. The media hands out each stick as presented by the government, a corporation or someone else in a supposed leadership position. The somewhat wise can grasp that there are three sticks and not just one and the good minds recognize not only the three sticks but see that it can be made into the first letter of the alphabet. The great minds go further and see that the same three sticks can also be made into an “H,” an “N” or an “F.” Then, finally, there is the time factor; get there first and the odds of you winning go up dramatically. Just a little wisdom from Pooh and his friends.
In this light then let us consider the recent proposal from the Federal Reserve Bank of Dallas. Under the banner of limiting the government’s support for the large U.S. banks in case one were to fail the Dallas Fed has proposed capping assets at $250 billion and of walling off investment banking from the bank. This would represent a massive reversal from Glass-Steagall and would have a severe impact upon the financial condition of all of the major American banks. This plan is suggested so that the FDIC could shut a failed bank without using taxpayer funds.