(Glenbeulah) Congressman Glenn Grothman says he has mixed feeling about the federal government guaranteeing depositors in a couple of failing banks. He says it’s good that people will not be losing their money and savings, but adds the Federal Reserve’s guarantee is yet another of those things that fuels economic debt and inflation.
Grothamn says there are potential rocky times ahead. He says another issue with banks is that the Federal Reserve requires some of them to make loans to customers who might be at higher risk of defaulting on a loan.
The federal lawmaker from Glenbeulah also takes issue with the federal government fully guaranteeing depositors who have more than $250,000 in their accounts. He feels that is too much of threshold to have a 100-percent guarantee on.