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Author Topic: FDIC Warning!  (Read 1626 times)

Offline Astorian316

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FDIC Warning!
« on: March 05, 2009, 05:25:13 PM »
The FDIC does not have enough to cover all of the US banks....is anybody surprised by this?

http://news.yahoo.com/s/afp/20090305/pl_afp/financeeconomyusbankinggovernment

Offline Harlan

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Re: FDIC Warning!
« Reply #1 on: March 05, 2009, 05:38:27 PM »
This is just the banks complaining that they need to pay more to the FDIC to cover the expected increased bank failures. It's like an insurance company raising homeowners rates because hurricanes are causing more damages. The banks will whine, but pay the increased amount, passing the costs along to customers, of course. And if a bunch of banks should fail and draw the fund down to $0, there is a 100% chance that the Treasury will borrow (or print) money to cover the losses. The only way the FDIC doesn't cover consumer bank losses is if the Federal government is overthrown by a libertarian coup. Not gonna happen. Don't worry about your bank deposits.

The FDIC does not have enough to cover all of the US banks....is anybody surprised by this?

http://news.yahoo.com/s/afp/20090305/pl_afp/financeeconomyusbankinggovernment

Offline TRX

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Re: FDIC Warning!
« Reply #2 on: March 05, 2009, 05:49:58 PM »
. And if a bunch of banks should fail and draw the fund down to $0, there is a 100% chance that the Treasury will borrow (or print) money to cover the losses. The only way the FDIC doesn't cover consumer bank losses is if the Federal government is overthrown by a libertarian coup. Not gonna happen. Don't worry about your bank deposits.

A coup you say?
You had my hopes up, and then dashed them back to reality. Of course, joking.
So what happens if the Treasury prints more money? And is there any limit to how much money could be printed?



http://www.fdic.gov/about/learn/learning/when/2000s.html

There is also some history of when the savings and loans crisis resolution was folded into the FDIC.
As usual, all would pay more for the mismanagement of others.

But yes, I would really be more concerned if you had more than $100,000 with just one company. Why would you?
And if you did, how nice to be in your shoes.


In other matters,
http://uk.reuters.com/article/americasRegulatoryNes/idUKN0349765020090303

"A U.S. senator berated Federal Reserve Chairman Ben Bernanke on Tuesday for refusing to name banks that borrow from the central bank and introduced legislation that would require public disclosure."


Does it mean anything when socialist democrats and capitalists are sharing similar concerns ?




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Offline merm

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Re: FDIC Warning!
« Reply #3 on: March 05, 2009, 05:51:51 PM »
This is true for all insurance. Life insurance companies for example don't have enough money to pay everyone's benefit if all their clients die.

Offline TRX

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Re: FDIC Warning!
« Reply #4 on: March 05, 2009, 05:54:00 PM »

More funny?
http://www.thedailyshow.com/full-episodes/index.jhtml?episodeId=219503

Brian Williams and Jon Stewart recently discussed the banking situation.



OT Stewart also recently highlighted the similarities of discussion of Iraq between Bush and Obama.
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Offline Harlan

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Re: FDIC Warning!
« Reply #5 on: March 05, 2009, 08:02:54 PM »
This is true for all insurance. Life insurance companies for example don't have enough money to pay everyone's benefit if all their clients die.

Yep. They're reinsured by reinsurance companies, which insure a bunch of other insurance companies. The FDIC's reinsurance company is the rest of the Federal government.

Offline merm

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Re: FDIC Warning!
« Reply #6 on: March 11, 2009, 09:00:59 PM »
Yep. They're reinsured by reinsurance companies, which insure a bunch of other insurance companies. The FDIC's reinsurance company is the rest of the Federal government.

Yes, but the reinsurance doesn't have enough money to pay if all their clients clients die.  :lol: Sorry couldn't resist.


 

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