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Old 10-15-2009, 07:56 PM
 
Location: Pittsburgh
8 posts, read 21,296 times
Reputation: 11

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NEW YORK (CNNMoney.com) -- The government insurance fund designed to protect consumer bank deposits will likely stay in the red through 2012, Federal Deposit Insurance Corp. chief Sheila Bair said Wednesday.

Testifying before members of the Senate Banking Committee, the nation's top commercial bank regulator stressed that her agency was taking immediate steps to replenish the dwindling fund. But she said those efforts would not put the rescue fund in the black until a little more than two years from now at the earliest.

http://money.cnn.com/2009/10/14/news...fund/index.htm

If something in the economy went horribly wrong, would the FDIC guarantee be worthless?
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Old 10-15-2009, 08:04 PM
 
Location: Memphis, Tn ~ U.S.A.
2,115 posts, read 4,569,533 times
Reputation: 1656
It means its time to get a bigger mattress
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Old 10-16-2009, 09:22 AM
 
Location: Sinking in the Great Salt Lake
13,145 posts, read 20,406,781 times
Reputation: 14042
Quote:
Originally Posted by Brook24 View Post

If something in the economy went horribly wrong, would the FDIC guarantee be worthless?
I'm sure they would issue you an IOU for your lost savings when they can't pay for it. One worthless piece of paper for another!
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Old 10-16-2009, 11:00 AM
 
12,869 posts, read 13,699,852 times
Reputation: 4453
Quote:
Originally Posted by Brook24 View Post
NEW YORK (CNNMoney.com) -- The government insurance fund designed to protect consumer bank deposits will likely stay in the red through 2012, Federal Deposit Insurance Corp. chief Sheila Bair said Wednesday.

Testifying before members of the Senate Banking Committee, the nation's top commercial bank regulator stressed that her agency was taking immediate steps to replenish the dwindling fund. But she said those efforts would not put the rescue fund in the black until a little more than two years from now at the earliest.

FDIC fund in the red until 2012 - Oct. 14, 2009

If something in the economy went horribly wrong, would the FDIC guarantee be worthless?
in the red means already worthless.
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Old 10-16-2009, 11:12 AM
 
Location: Great State of Texas
86,068 posts, read 76,787,344 times
Reputation: 27652
Confidence is the only thing holding our economy together right now.

The FDIC is bankrupt but the Treasury said they would loan them $500 billion.
Now does the Treasury have an extra $500 billion lying around ?

And yet all these "investment" banks are rolling in the dough and not helping to bail out the FDIC via higher insurance payments.

You KNOW who is going to get screwed here don't you ?
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Old 10-16-2009, 11:43 AM
 
Location: Planet Eaarth
8,955 posts, read 18,754,443 times
Reputation: 7193
Quote:
Originally Posted by (901) View Post
It means its time to get a bigger mattress
Nope, it doesn't since this trick only works with money that has value. The American dollar is what's known as "fiat currency" which simply means that it has no value of it's own!!
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Old 10-16-2009, 01:41 PM
 
3,460 posts, read 5,196,191 times
Reputation: 6677
Quote:
Originally Posted by Tightwad View Post
Nope, it doesn't since this trick only works with money that has value. The American dollar is what's known as "fiat currency" which simply means that it has no value of it's own!!
Nobody said you had to keep US dollars in your mattress. My little stack of loonies has done a lot better than my MMA lately.
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Old 10-17-2009, 09:09 PM
 
Location: Conejo Valley, CA
12,470 posts, read 18,210,220 times
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It does not mean much, this is not the first time that the FDIC needed to be "bailed out". The FDIC will be supported in the worst case by the treasury. Out of all the things to be concerned with, this is not one of them.
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Old 10-17-2009, 09:14 PM
 
3,349 posts, read 4,340,027 times
Reputation: 4726
Quote:
Originally Posted by (901)
It means its time to get a bigger mattress
Quote:
Originally Posted by Tightwad View Post
Nope, it doesn't since this trick only works with money that has value. The American dollar is what's known as "fiat currency" which simply means that it has no value of it's own!!
Tightwad, I think that (901) meant getting a bigger mattress which itself has value. In other words, the mattress is the value item, not the money hidden under it!

If you think about it, no one is dealing in mattress derivatives, mattress default swaps, or collateralised mattress obligations yet. Time to get in before Goldman Sachs does!

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Old 10-18-2009, 09:41 PM
 
Location: Planet Eaarth
8,955 posts, read 18,754,443 times
Reputation: 7193
Quote:
Originally Posted by Teak View Post
Tightwad, I think that (901) meant getting a bigger mattress which itself has value. In other words, the mattress is the value item, not the money hidden under it!

If you think about it, no one is dealing in mattress derivatives, mattress default swaps, or collateralised mattress obligations yet. Time to get in before Goldman Sachs does!

I did not mention the "mattress bank" someone else must have. I agree they are foolish but the savvy still keep a sizable amount of cash on hand these days.
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