I couldn’t believe my doublespeak ears when I watched this video by FDIC chair Sheila Bair.  She is literally lying to your face.  Here’s an interesting game, can you tell how many times she lies right to your face?

Lie #1 0:26 seconds into the video: “Your insured deposits are absolutely safe.”  – Correct me if I am wrong but aren’t deposits UP TO $250k safe (did you catch that carefully parsed sentence: insured deposits are safe) and not ALL deposits?

Lie #2 0:46 seconds into the video: “Since the history of FDIC no insured depositors have every lost money and no one ever will.”  – That’s a pretty bold statement, Sheila knows the future with absolute certainty.  No one will EVER lose money with FDIC.

Lie #3 0:57 seconds into the video:  “the overwhelming majority will weather this economic storm.”  – And how does Shiela know with absolute certainty that this statement is true?

Lie #4 1:04 seconds into the video:  “As the economy heals, so will the banking system.”  – Really?  What if people lose faith in the banking system, how will it be healed with absolute certainty?   Why are you on a YouTube video assuring us that everything is ok?  You don’t regularly do this do you?   Isn’t the mere fact that you are on telling everyone everything is safe a concern for alarm?

Lie #5 1:44 seconds into the video:  “for the bank depositor, a failure is a non-event.”  – A non-event huh?   I don’t seem to have the exact same feature that I once had in my bank account once it was converted over; my local branch office closed and now I have to drive further to make deposits.  This is a plain lie.

Lie #6 2:03 seconds into the video: “we are the government” (can borrow from Treasury) –  One the one hand the FDIC claims it is “An independent agency of the federal government” and then on the other it claims it is the government.  Which one is it?

Lie #7 2:09 seconds into the video: “in short we cannot run out of money” – While technically a true statement, the important thing to note is that being paid back with worthless pieces of paper is just as bad as not being paid back at all.

Lie #8 2:54 seconds into the video: “we can borrow $500 billion from Treasury (i.e. tax payer)” – This isn’t a reassuring statement, dumping banking problems to the tune of $500 billion on the tax payer is concerning not to mention that  you still can’t cover $4 Trillion dollar worth of deposits with $500 billion.

Lie #9 3:28 seconds into the video: “no insured depositor has ever lost money in the history of FDIC.” – Curious that this agency isn’t subject to the same “past performance is no indication of future performance” disclaimer any financial agency has to disclose these days.   I guess because FDIC is the government it doesn’t have to comply.

Watch the video for yourself:

httpv://www.youtube.com/watch?v=7BxiEJcOoo0&feature=player_embedded

I need to hire that facial recognition guy on Lie to Me to check out that eye twitch on Sheila’s left eye.   She almost seems to be having a difficult time telling the truth right to your face but I could be wrong 😉