Credit unions belly up to bailout buffet

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The Wall Street Journal is reporting this morning that the Federal Government is now moving to bail out the credit union network.

“In the latest effort to prop up a sector of the finance industry, federal regulators on Wednesday guaranteed $80 billion in uninsured deposits at the powerful institutions that service the nation’s credit unions,” the paper reported.

The paper added that the vast majority of the nation’s credit union’s are considered financially sound. Some 90 million Americans are believed to hold accounts at credit unions, which reach into virtually every community in the nation.

Meanwhile, The Obama administration is developing proposals to help rescue the banking system that could cost taxpayers much more than the $700 billion bailout Congress already has approved, according to The Associated Press.

“Details are still being worked out,” according to The AP. “But the administration will likely propose spending hundreds of billions more to address the foreclosure crisis, guarantee against losses on some bank assets and expand liquidity programs, according to people with knowledge of the discussions.”

Yes, this is going to end well.

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