With matters like this appearing to cloud the horizon can anyone...

With matters like this appearing to cloud the horizon can anyone explain the "irrational exuberance" in the US stockmarket (article from The Fundamental View):

FDIC AND TREASURY ARE BROKE
Today’s NY Times story (LINK) gives me the impression that one of two things is clear here.

1. The US Treasury doesn’t have any money;
2. The FDIC is running broke.

I make these statements today after reading a story out of the NY Times in which it is reported that the FDIC may ask banks to bail out the government. What? ! ?

Wren’t these the same banks that only 9 short months ago were on the verge of collapse? Didn’t these banks only become healthy because they took money from the Treasury? Then, using that money, and the money there were paid by AIG on all their insurance claims re-invested it in the speculative casino that has become Wall Street using their high frequency front running software to scalp every penny off regular investors that they could? What kind of mob style ponzi scheme is this?
What do the bankers say?


Bankers worry that a special assessment of $5 billion to $10 billion over the next six months would crimp their profits and could push a handful of banks into deeper financial trouble or even receivership.


What’s the other side of the coin?


Any new borrowing from the Treasury would be construed as a taxpayer bailout that could open the industry to a political reaction, resulting in a wave of restrictions like fresh limits on executive pay.


“Borrowing from healthy banks, instead of the Treasury, has the advantage of keeping this in the family,” said Karen M. Thomas, executive vice president of government relations at the Independent Community Bankers of America, a trade group representing about 5,000 banks. “It is much better for perceptions than having the fund borrow from somewhere else.”

Hey Karen…. Nice choice of words. The last time I heard the terms “keeping this in the family" is when I used to watch the Sopranos.

Here’s my view. Both the FDIC and the US Treasury are screwed and you will see the FDIC tap the Treasury resulting in more money printing from the FED. These greedy banks just made a fortune with the money they received from bailouts and the last think they want to do is lend it out to save the weak banks. This is exactly what should have been expected when the Government decided to bail out troubled institutions instead of letting the free market do it’s thing by letting those that deserved to fail do just that.

This is turning into the biggest Ponzi scheme I’ve ever seen.