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Thursday, July 24, 2008

Blaming Bloggers?

Bloggers Causing Bank Run?
I was flabbergasted when I read the following story. Sheila Bair is accusing bloggers of being a "bit out of countrol."

The federal agency insuring bank deposits learned that it can't afford to ignore the blogs following its seizure this month of IndyMac Bank, the largest bank failure since the 1980s.

"The blogs were a bit out of control," Sheila Bair, chairman of the Federal Deposit Insurance Corp., told the San Francisco Business Times after a speech in San Francisco this week.

That's putting it mildly. Following the FDIC's takeover of IndyMac on July 11, widely followed blogs were speculating on bank runs on some of California's largest banks based on nothing more than people waiting for their branch to open or large deposits moving between financial institutions.

The FDIC plans to pay closer attention to the blogosphere in the future.

"We're very mindful of the media coverage and blogs in controlling misinformation. All I can say is were going to continue to stay on top of it," Bair said. "The misinformation that came out over the weekend fed a lot of depositors' fears."

She is using tax payer dollar to prove her theory that loan remodifications are better than foreclosing. And bloggers are out of control?
Remember we try to tell you the way it is. Unlike other media that have other agendas.

1 comment:

Money Talks said...

Interesting article, I have a few on my site too