Immaculate1, FDIC money doesn't come from the government and the tax payers. It's a government institution but banks pay the premiums as FDIC stands for Federal Deposits INSURANCE Corporation.

Though Indymac is the biggest scum company i've seen. They were the company my parents had a mortgage with, would not negotiate when they fell behind on payments when they put them in an arm with ridiculous agreements and misled them on the terms.

We should see a lot of this coming soon.

You are very right on this part. Though some prices are being pumped faster without the liquidity of cash because of the cost of logistics right now =(. Inflation only happens when the fed provides TOO low of interest for the economy though, but it's hard for anyone to tell what's gonna happen with that.

Though banks hate inflation as much as the consumer for the exact same reason as a consumer. If a person has a good job their employer will provide them a cost of living pay increase based on inflation (they make more money because of inflation) so that's not so much an issue. Though their savings accounts suffer if the interest doesn't surpass inflation (which is what's happening now). The reason banks hate it is because their interest charged can be outdone by inflation, the minimal part, and the more important one is that the loans issued become lesser and lesser significant as there's more money in the economy.