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FDIC Warns Insurance Fund Could Tank
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The FDIC chief said..."Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative," she wrote.
The fund balance could become negative? How do they do that? They would be able to pay out money to depositors even though they don't have money to pay out? The FDIC gets to create money, too???? If the FDIC can pay depositors with negative money, then negative is positive. I think George Orwell forgot to chalk up a little rule in Animal Farm, unless "Less is More" covers this situation, too. |
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They said that they were going to start charging the banks more. We also know that if they have to that they will just start printing money.
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The government wouldn't allow FDIC to fail. If obligations exceeded what was in the fund, then the treasury would just dump more money into it. And yes, that means printing more money if necessary.
Nobody likes it, but what's the alternative. Allow people to lose their deposits in the banks and we'll have a real problem on our hands. I'm a little surprised FDIC would come out and say something like this. The whole point of having the FDIC is to maintain confidence. Telling the public that it's possible they could fail is counterproductive, if not insane. |
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I hope you're right sweeps...I can't imagine what would happen if people lost their life savings. A lot of people I know moved from stocks to cash last year anticipating this bad market we're in.
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I'm trying to cultivate some que sera sera attitude. I had more than my share of anxiety even before this recession, so intend to guard against panic. |
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Am I understanding this correctly that our savings our fine, but that the banks will start charging more fees to cover this?
So I'm worried about my retirement...now I have to worry about my savings... ?? ![]() |
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