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if the FDIC is insolvent they do get money from the Treasury but yes, it may alarm people and there could be a bank run. Hopefully, if the FDIC becomes insolvent it is handled transparently and quickly.
You miss the intent of the warning - it wasn't to depositors to tell them to stuff matresses, it was to banks who have to pay the "insurance premiums". FDIC will be covered by the U.S. treasury if nothing else. It's no worse news then the other innumberable bail outs that are needed.
The bad thing is, however, people will misinterpret this warning, like the OP has done, and see it as a reason to make a run on the banks. Self fulfilling prophecies.
You miss the intent of the warning - it wasn't to depositors to tell them to stuff matresses, it was to banks who have to pay the "insurance premiums". FDIC will be covered by the U.S. treasury if nothing else.
The bad thing is, however, people will misinterpret this warning, like the OP has done, and see it as a reason to make a run on the banks. Self fulfilling prophecies.
Before they do that I'd hope they would check out the safety rating(s) of their banking institution(s).
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