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Old 02-27-2009, 01:44 AM
 
Location: Tennessee/Michigan
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WASHINGTON, Feb. 26 (UPI) -- The federal insurance fund that guarantees the security of U.S. bank deposits is being drained by the rise in financial institution failures, officials said.

The Federal Deposit Insurance Corp. fund has dropped to its lowest level since 1993, The Washington Post reported Thursday.

FDIC fund slips amid bank failures - UPI.com
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Old 02-27-2009, 10:10 AM
 
20,194 posts, read 21,595,192 times
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I said it at the beginning, the FDIC cannot possibly have enough money to cover a small portion of the banks... what happened when I said that? Most people told me I was an idiot and stop spreading disinformation... well the FDIC funds are just over 17 billion from 52 billion in less than 2 years and the worse is YET to come... if citibank goes bankrupt (which it didn't since its been unofficially nationalized) it would of severely drained the coffers (hence the nationalization)... BoA can expect the same treatment... wasting billions of dollars for all this, trillions in government spending and bailouts, raising taxes on everyone (yes, everyone will pay for the carbon emission stealth tax), and a crash course into socialism... this country is FAILED... someone should put it among the FAILED videos.. what NOT to do to a country in turmoil...
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Old 02-27-2009, 10:28 AM
 
20,194 posts, read 21,595,192 times
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I told you already, pull your money because when there is a run on the bank, you can wait forever to get any of it and probably will only get part of it... Apparently they are anticipating 80 BIILLION more dollars needed for the FDIC and taxpayers will be fronting the bill for it (as in borrow from the Chinese you pay them with interest, Obamas favorite plan)... Thanks Obama, I am beginning to like this socialism...NOT

FDIC predicts epic $80 billion cost for bank failures - Feb. 27, 2009 (http://money.cnn.com/2009/02/27/news/companies/bank_fail.reut/index.htm?postversion=2009022710 - broken link)
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Old 02-27-2009, 08:27 PM
 
939 posts, read 3,186,004 times
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Quote:
Originally Posted by evilnewbie View Post
I told you already, pull your money because when there is a run on the bank, you can wait forever to get any of it and probably will only get part of it... Apparently they are anticipating 80 BIILLION more dollars needed for the FDIC and taxpayers will be fronting the bill for it (as in borrow from the Chinese you pay them with interest, Obamas favorite plan)... Thanks Obama, I am beginning to like this socialism...NOT

FDIC predicts epic $80 billion cost for bank failures - Feb. 27, 2009 (http://money.cnn.com/2009/02/27/news/companies/bank_fail.reut/index.htm?postversion=2009022710 - broken link)
The government won't let the FDIC fail. They would simply loan money to the them to prevent a run on all of our banks. If the FDIC were to fail then the American dollar will truly become worthless. We'll start using dollar bills to wipe our butts because toilet paper would be too expensive to buy.
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Old 02-28-2009, 06:14 AM
 
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There were a ton mopre banks that actually failed in the 80's and no problem. I ain't worried about the banks;its the massive deficit being created that is the problem to come.Remmber this is the same governamnt party that created Fannie Mae and Mac running things.
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Old 02-28-2009, 06:49 AM
 
3,283 posts, read 4,840,811 times
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Originally Posted by iGlenn View Post
The government won't let the FDIC fail. They would simply loan money to the them to prevent a run on all of our banks. If the FDIC were to fail then the American dollar will truly become worthless. We'll start using dollar bills to wipe our butts because toilet paper would be too expensive to buy.

you've got that the wrong way around. if the fdic fails, it will create a huge shortage in cash and the dollar would more than likely strengthen. asset prices and markets will crash however. most businesses will crash too because of the shortage of cash to operate and the shortage of cash which consumers will have access to. what the govt is doing now by spending and creating more money is what will lead to the devaluation of the dollar
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Old 02-28-2009, 07:55 AM
 
3,734 posts, read 4,848,433 times
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Originally Posted by 58robbo View Post
you've got that the wrong way around. if the fdic fails, it will create a huge shortage in cash and the dollar would more than likely strengthen. asset prices and markets will crash however. most businesses will crash too because of the shortage of cash to operate and the shortage of cash which consumers will have access to. what the govt is doing now by spending and creating more money is what will lead to the devaluation of the dollar
I pray that they fail miserably and dramatically in their efforts.
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Old 02-28-2009, 03:20 PM
 
3,283 posts, read 4,840,811 times
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Originally Posted by trishguard View Post
I pray that they fail miserably and dramatically in their efforts.
there is a downside to that too. if the fdic fails, most peoples bank deposits are threatened and this will trigger a run on the banks which will dwarf the depression. i doubt a single bank will be left standing. the resulting drop in asset prices will leave our country's assets vulnerable to overseas take over.
if i understand anything about bernanke it is that he wants to devalue the dollar. this will achieve many positives. for one it minimises foreign debt in real terms. it might help to address the current trade deficit. a re-inflated bubble deals with the problem of the entire banking system being underwater. any rise in commodity prices will have a positive environmental impact because it is the ONLY fertile ground for alternatives, govt mandates don't work!

just thinking out aloud btw. these are not what i think should be done but rather what i think is being done. just trying to understand why
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Old 02-28-2009, 06:24 PM
 
48,508 posts, read 88,747,434 times
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The big banks could easily cause the FDIC to fail from what Ihave heard while hundreds smaller ones failed in the 80's and it was covered. The FDIC remember is funded by fees on banks.The big ohnes fail and that would lead to collapse and probaly a 90% unemployemnt rate quickly and massive closings.
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Old 02-28-2009, 06:40 PM
 
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Not all banks are insolvent.
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