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Schumer’s Waterloo?

Charles Schumer, Senator from New York, is at least partially responsible for the run on California’s IndyMac bank, because of a memo he released that warned of “concerns” over the banks stability.  Unfortunately, such rumors because self-fulfilling prophecies, since they essentially encourage massive withdrawals from panicky depositors.  Well, what are people supposed to do when a US senator announces he thinks their savings are threatened?

It seems apparent that the memo’s release was not accidental, particularly in light of Schumer’s defensiveness about his duty to “warn” the public.  Problem is, there are laws making it a crime to incite a bank panic.  It will be interesting to see if Schumer is further investigated, and if he is, to find out if he had other motives (besides public service) for creating this situation.

Schumer is always more than willing to harass innocent businesspeople for nothing more than his personal political ends, so it’s time he got a little of his own medicine.  Unfortunately, he’s powerful and probably connected enough to get himself off the hook for doing something he’d never let slide if it were someone else spreading the rumors.

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