There IS another FOOL among them...Fed employee Chris Whalen

Chris Whalen did an interview which can be found here. Apparently, he is totally mistaken as to how money works and what it is. He seems to believe that the dollar will continue to weaken, as printing and selling of credit increases as a mechanism to prop up the banks. He seems to believe that the FDIC is going to cover his funds at Bank of America when they go under - in fact he’s not worried in the least about his money deposited at BAC. He also can not seem to utter the phrase Bank “OF” America - to him its "Bank America” - clearly he has a Klugman type deficiency. What urks me about this kind of stuff is that these people ever had jobs running anything in the financial system when they do not understand the essence of their business - the nature of money, that the problem IS the FDIC. That in reality the implied guarantee from the US government is much less binding than one would think - the FDIC has up to 99 years to give you your money back. The reasons we have systemic problems are because people either cronied up like a lobbyists with a retainer or are simply clueless (like Whalen) or both.

What this means is that for all the fancy swanky talk, leveraged banks will go under and you will not get paid…Whalen will likely be one of them. What he seems to fail to understand is that flushing of credit down the toilet is not the same as availability of cash. Therefore, we have a MAJOR liquidity problem - MUCH MUCH bigger than in 2008 and the Fed and FDIC and the assorted credit pimping entities will have the only impact they have already had…they will make things worse.

I beg to differ with Macro Story (post can be found here) regarding Whalen being "arguably the best bank analyst in the country". His analysis is, on its face, fatally flawed.