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  • August 24, 2009 at 10:28 AM #16226
    socrattt
    Participant

    Here is an article that was emailed to me this morning. It looks as though the FDIC may be bankrupt, but I am sure with a few tricks from the FED the will have a never ending cash flow.

    Never read this guys blogs before, so I don’t know much about him, but I think the numbers speak for themselves.

    http://www.lewrockwell.com/sardi/sardi116.html

    August 24, 2009 at 9:12 PM #448454
    capeman
    Participant

    Keep some serious cash on hand. The FDIC has a 100 Billion credit line it can draw from the Treasury but that will add to the immense debt offerings they are already selling. The fact of the matter is that the FDIC is going to take an insane amount of losses by not closing banks down when they should and eventually there may be no real insurance to cover deposits.

    It’s a stretch expecting that the gov’t will not have the means to bail out the FDIC but it is possible.

    August 24, 2009 at 9:12 PM #448645
    capeman
    Participant

    Keep some serious cash on hand. The FDIC has a 100 Billion credit line it can draw from the Treasury but that will add to the immense debt offerings they are already selling. The fact of the matter is that the FDIC is going to take an insane amount of losses by not closing banks down when they should and eventually there may be no real insurance to cover deposits.

    It’s a stretch expecting that the gov’t will not have the means to bail out the FDIC but it is possible.

    August 24, 2009 at 9:12 PM #448984
    capeman
    Participant

    Keep some serious cash on hand. The FDIC has a 100 Billion credit line it can draw from the Treasury but that will add to the immense debt offerings they are already selling. The fact of the matter is that the FDIC is going to take an insane amount of losses by not closing banks down when they should and eventually there may be no real insurance to cover deposits.

    It’s a stretch expecting that the gov’t will not have the means to bail out the FDIC but it is possible.

    August 24, 2009 at 9:12 PM #449053
    capeman
    Participant

    Keep some serious cash on hand. The FDIC has a 100 Billion credit line it can draw from the Treasury but that will add to the immense debt offerings they are already selling. The fact of the matter is that the FDIC is going to take an insane amount of losses by not closing banks down when they should and eventually there may be no real insurance to cover deposits.

    It’s a stretch expecting that the gov’t will not have the means to bail out the FDIC but it is possible.

    August 24, 2009 at 9:12 PM #449241
    capeman
    Participant

    Keep some serious cash on hand. The FDIC has a 100 Billion credit line it can draw from the Treasury but that will add to the immense debt offerings they are already selling. The fact of the matter is that the FDIC is going to take an insane amount of losses by not closing banks down when they should and eventually there may be no real insurance to cover deposits.

    It’s a stretch expecting that the gov’t will not have the means to bail out the FDIC but it is possible.

    August 24, 2009 at 9:22 PM #448464
    davelj
    Participant

    As capeman pointed out, the FDIC will borrow the shortfall from the Treasury (We the People, that is). Then, in theory, the FDIC will levy increased deposit fees on the banks (as they are doing now on a regular basis) who will pay back the Treasury and replenish the fund over time. I think the Treasury will get paid back and the insurance fund will be replenished but it will take many years. And who will pay for this? Depositors, ultimately.

    August 24, 2009 at 9:22 PM #448655
    davelj
    Participant

    As capeman pointed out, the FDIC will borrow the shortfall from the Treasury (We the People, that is). Then, in theory, the FDIC will levy increased deposit fees on the banks (as they are doing now on a regular basis) who will pay back the Treasury and replenish the fund over time. I think the Treasury will get paid back and the insurance fund will be replenished but it will take many years. And who will pay for this? Depositors, ultimately.

    August 24, 2009 at 9:22 PM #448995
    davelj
    Participant

    As capeman pointed out, the FDIC will borrow the shortfall from the Treasury (We the People, that is). Then, in theory, the FDIC will levy increased deposit fees on the banks (as they are doing now on a regular basis) who will pay back the Treasury and replenish the fund over time. I think the Treasury will get paid back and the insurance fund will be replenished but it will take many years. And who will pay for this? Depositors, ultimately.

    August 24, 2009 at 9:22 PM #449064
    davelj
    Participant

    As capeman pointed out, the FDIC will borrow the shortfall from the Treasury (We the People, that is). Then, in theory, the FDIC will levy increased deposit fees on the banks (as they are doing now on a regular basis) who will pay back the Treasury and replenish the fund over time. I think the Treasury will get paid back and the insurance fund will be replenished but it will take many years. And who will pay for this? Depositors, ultimately.

    August 24, 2009 at 9:22 PM #449251
    davelj
    Participant

    As capeman pointed out, the FDIC will borrow the shortfall from the Treasury (We the People, that is). Then, in theory, the FDIC will levy increased deposit fees on the banks (as they are doing now on a regular basis) who will pay back the Treasury and replenish the fund over time. I think the Treasury will get paid back and the insurance fund will be replenished but it will take many years. And who will pay for this? Depositors, ultimately.

    August 24, 2009 at 10:36 PM #448494
    bsrsharma
    Participant

    Means nothing.

    If you want to be a worry wart, start looking at the bond rates like here: http://finance.yahoo.com/bonds

    As long as you don’t see double digits, US treasury is not yet bankrupt and can borrow to replenish FDIC.

    If you start seeing double digits, it is “red alert” time and you should convert your $ to other currencies or assets since the money will be rapidly losing value.

    (Last time this “red alert” was reached was during 1979-85 see http://finance.yahoo.com/q/hp?s=^TYX&a=01&b=15&c=1977&d=07&e=25&f=2009&g=m&z=66&y=0 )

    August 24, 2009 at 10:36 PM #448684
    bsrsharma
    Participant

    Means nothing.

    If you want to be a worry wart, start looking at the bond rates like here: http://finance.yahoo.com/bonds

    As long as you don’t see double digits, US treasury is not yet bankrupt and can borrow to replenish FDIC.

    If you start seeing double digits, it is “red alert” time and you should convert your $ to other currencies or assets since the money will be rapidly losing value.

    (Last time this “red alert” was reached was during 1979-85 see http://finance.yahoo.com/q/hp?s=^TYX&a=01&b=15&c=1977&d=07&e=25&f=2009&g=m&z=66&y=0 )

    August 24, 2009 at 10:36 PM #449025
    bsrsharma
    Participant

    Means nothing.

    If you want to be a worry wart, start looking at the bond rates like here: http://finance.yahoo.com/bonds

    As long as you don’t see double digits, US treasury is not yet bankrupt and can borrow to replenish FDIC.

    If you start seeing double digits, it is “red alert” time and you should convert your $ to other currencies or assets since the money will be rapidly losing value.

    (Last time this “red alert” was reached was during 1979-85 see http://finance.yahoo.com/q/hp?s=^TYX&a=01&b=15&c=1977&d=07&e=25&f=2009&g=m&z=66&y=0 )

    August 24, 2009 at 10:36 PM #449094
    bsrsharma
    Participant

    Means nothing.

    If you want to be a worry wart, start looking at the bond rates like here: http://finance.yahoo.com/bonds

    As long as you don’t see double digits, US treasury is not yet bankrupt and can borrow to replenish FDIC.

    If you start seeing double digits, it is “red alert” time and you should convert your $ to other currencies or assets since the money will be rapidly losing value.

    (Last time this “red alert” was reached was during 1979-85 see http://finance.yahoo.com/q/hp?s=^TYX&a=01&b=15&c=1977&d=07&e=25&f=2009&g=m&z=66&y=0 )

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