The banking-sector crisis is getting better by the minute. What was a financial disaster has turned into some first-rate political entertainment. Our nation’s leaders are putting in an award-winning performance.

I guess the theme of the day is “circular logic.” It does not matter whether we look at the real estate industry or the banking sector, as long as the government is involved, things just won’t make sense.

As if the nation’s bankers do not already have enough on their plates, the FDIC’s chief, Sheila Bair, is telling the nation her agency’s insurance reserves could run out later this year. That could be a major Great Depression-era problem.

But have no fear. She has an answer.

The FDIC merely tends to force the nation’s banks to put more into the reserves. That’s right, ask the companies that are failing to pay more for the insurance that protects them.

Needless to say, the industry is going ballistic. Just as the Obama administration wants to increase taxes during the worst recession in many of our lives, Bair wants to raise the price of doing business for the nation’s most-desperate industry.

Read the full article here: Source: Banks going broke? Charge them more