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I mean whatever is causing all the hullabaloo in DC and all this doomsday talk of the govt. defaulting. Call it whatever you want, shutdown, default, not paying its bills, etc
The government has been shutdown for 15 days already. I think what you're thinking of is the government default if the debt ceiling isn't raised by Thursday. As others have already explained on this thread, that shouldn't affect your bank account.
For a short overview of what will happen if the debt ceiling isn't raised:
The government has been shutdown for 15 days already. I think what you're thinking of is the government default if the debt ceiling isn't raised by Thursday. As others have already explained on this thread, that shouldn't affect your bank account.
For a short overview of what will happen if the debt ceiling isn't raised:
I've pretty much been ignoring all this govt shutdown nonsense until today when I started reading doom-and-gloom prophecies of what will happen to bank deposits. So can anyone tell me straight, trying to keep levity to a minimum, what will happen to the banks and our deposits if the govt defaults for any substantial amount of time?
The banks are stocking up the ATMs in prep for bank runs ....
I merely asked a question that is comprehensible to anyone reading it?
It was, in fact, incomprehensible. There is little in common between the shutdown and a default. I pointed that out. Twice. And you are upset about it.
One doesn't have to speculate on what happens when a nation's currency collapses. Just make friends with someone from Argentina who remembers what happened when the austral or peso or real became worthless! If you can't find an Argentino a Brasilian, Zimbabwean or Somali will do just as well.
The FDIC is not funded by Congress so they are working. They are funded by bank & financial institution insurance premiums.
Thank you. I learn something new everyday. I realized that the premiums covered the potential losses of a failed bank, but I thought that some of the administrative functions, particularly investigations and enforcement, were funded by the government. But evidently the premiums are sufficient to cover all of the operating costs of the FDIC.
Thank you. I learn something new everyday. I realized that the premiums covered the potential losses of a failed bank, but I thought that some of the administrative functions, particularly investigations and enforcement, were funded by the government. But evidently the premiums are sufficient to cover all of the operating costs of the FDIC.
This is the good news, now for the bad news the FDIC has no where near the capital to bail out the huge commercial banks that were created after the repeal of the Glass-Steagel Act in 1997. These 'Banks" were created by merging Investment houses (Banks of a sort) with retail banks with very large numbers of traditional bank deposits that in the hands of the Wall Streeters became seed colaterial to back hundreds of trillions of dollars of finacial paper. Things like Mortgage -Back Securities or Bonds. Things like bets on whether a loan was sound or not (a way to remove risk from an inherently risky loan) known as a credit defaul swap. In this environment the Money Center firms like Goldman-Sachs, J.P. Morgan-Chase, Citicorp, Bank of America and Wells -Fargo and anyone else who wanted to become a mover and shaker like AIG, Bear-Sterns and the late great Lehman Brothers pushed loans and credit like no principle paydown mortgages to generate the fodder to make new finacial paper and monetize it and make it like like a triple A bond so it could be sold to other less knowledgable investors (Like the Chinese or BRIC nations or the OPEC crowd who have billions of dollars burning a hole in there pockets and who need a safe place to keep that money! In a collapse of the US Banking system much of the worlds finacial wealth would simply evaporate and the the FDIC and other finacial insurance also provided by the US government would be like the little Dutch boy trying to keep the Ocean at bay by putting his finge in the hole in the ****! This is good intentions but "In the End, It really doen't Matter!"
This is the good news, now for the bad news the FDIC has no where near the capital to bail out the huge commercial banks that were created after the repeal of the Glass-Steagel Act in 1997. These 'Banks" were created by merging Investment houses (Banks of a sort) with retail banks with very large numbers of traditional bank deposits that in the hands of the Wall Streeters became seed colaterial to back hundreds of trillions of dollars of finacial paper. Things like Mortgage -Back Securities or Bonds. Things like bets on whether a loan was sound or not (a way to remove risk from an inherently risky loan) known as a credit defaul swap. In this environment the Money Center firms like Goldman-Sachs, J.P. Morgan-Chase, Citicorp, Bank of America and Wells -Fargo and anyone else who wanted to become a mover and shaker like AIG, Bear-Sterns and the late great Lehman Brothers pushed loans and credit like no principle paydown mortgages to generate the fodder to make new finacial paper and monetize it and make it like like a triple A bond so it could be sold to other less knowledgable investors (Like the Chinese or BRIC nations or the OPEC crowd who have billions of dollars burning a hole in there pockets and who need a safe place to keep that money! In a collapse of the US Banking system much of the worlds finacial wealth would simply evaporate and the the FDIC and other finacial insurance also provided by the US government would be like the little Dutch boy trying to keep the Ocean at bay by putting his finge in the hole in the ****! This is good intentions but "In the End, It really doen't Matter!"
This, of course, is irrelevant. The FDIC does NOT "bail out banks", it guarantees up to 250k of your cash deposits at the bank. In other words, the guarantee is to YOU, not the bank.
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