Topic: Deposit Insurance

FDIC Chairman Sheila Bair released a video message to reassure the public as the number of US bank failures in 2009 surpassed 100. The hosts analyze her "nurse-style" delivery and the "healing process" language she uses to describe the economy. They question the math behind her claim that $100 billion in reserves and a line of credit with the Treasury can fully protect all insured deposits in the country.

The FDIC is considering a plan to borrow billions of dollars from healthy private banks to replenish its insurance fund, which has been depleted by a wave of bank failures. Critics argue this creates a circular financial logic where taxpayer-funded banks lend money back to the government with interest.