FDIC Scrutiny to Lengthen Recession

Kiplinger reports:

Banks are starting to chafe on a federal regulatory leash that is getting even shorter. As the Federal Deposit Insurance Corporation (FDIC) takes a less sanguine view of lending previously seen as safe, even healthy banks are being ordered by their primary regulator to slash credit and raise reserves.

The FDIC has done some a great job, the last 10 years! Of course we are kidding. The FDIC gives the illusion that a bank is safe.