Remember that scene at the beginning of It’s a Wonderful Life, where people are all desperately trying to get into the bank because if it fails before they get in, they lose their money? That’s what the FDIC prevents.
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Remember that scene at the beginning of It’s a Wonderful Life, where people are all desperately trying to get into the bank because if it fails before they get in, they lose their money? That’s what the FDIC prevents.
Yeah. FDIC insurance is the only reason each of us will be left with up to 100k 250k per bank account, if our banks go under. And most of us have less than 100k in savings, so it’s basically the US government saying
Don’t worry, even if shit hits the fan, you will still have your money.
I can’t even be bothered to hear how his minions are going to defend this one. It’s indefensible.
That’s a little hard to parse, but if you’re asking “What guarantees the FDIC has the money to pay back Americans who lose their savings because of a bank collapse?”: The FDIC does. From https://www.fdic.gov/about/what-we-do:
The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country.
FDIC insurance is a selling point for many retail banking products (like checking and savings accounts), so those institutions pay for the insurance so people will have confidence to bank there. More importantly, they buy it because it’s required by law currently.
If the FDIC were abolished, the void would be filled by unregulated entities that would charge higher premiums and cover less, and there would probably be kickbacks involved - while the government watches with its popcorn - to disincentivise real free market competition.
That’s if there were any kind of deposit insurance at all, I mean. The idea might be to encourage the American people to put their savings into a form they can retain control over - like precious metals, land, or digital currencies.
You did not remember correctly. This is disclosed on every savings account with a bank that is insured by the FDIC. The limit was raised several years ago.
Calling it now.
2026 with the economy in free fall and the Republicans about to be voted out of office, he will make his move to fully seize control and declare martial law to stop elections.
The moves they are talking about will absolutely destroy the economy and plunge us into the abyss.
I’m looking at the positive side of societal collapse. If there are no banks, then I don’t have to pay my mortgage.
There’s no way that happens without full on revolt.
They did paste it correctly but in Markdown, you have to type three. The first one escapes the second, and the third one escapes the underscore and prevents the pair from becoming an italics flag.
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A little bullshit story from Trump and Fox about how our tax dollars insure other people’s bad decisions and it’s toast.
let me guess. they would not touch spic.
Please be aware folks, the FDIC only has one percent of the money needed to back up their guarantee. I repeat, that’s one percent. A single big bank failure would probably wipe out the FDIC entirely and not everybody would get their money.
Oh, I have no opinion on the political side of the article. I’m just saying that the FDIC has 1% of what they claim to ensure. Many people are absolutely reliant on the FDIC in case their bank were to ever fail. And that’s not a particularly fantastic idea.
And exactly how much do said banks have on hand to cover deposits? If there is no FDIC then banks should be required to have 100% of the required liquid cash to cover all deposits.
You shut your fucking mouth about the FDIC. They are 100% industry funded, they supported Americans through the financial crisis so none of them lost a dime from failing banks, they effectively regulate a large number of banks to remediate financial stress before it results in a loss, and they have never taken a dime of taxpayer money.
And they don’t need to hold 100% of the cash in banks, do you hear yourself with how stupid that is? They model how much cash they need from premiums to hold in reserve and they are very effective at it. Also, if losses increase they can levy a special premium on banks to shore up their liquidity position like they did in the financial crisis.
The FDIC actually has a podcast series about how they managed the financial crisis in case you want to educate your ignorant ass. I taught a whole segment in it when I taught Commercial Banking.
Funny considering the number of bank failures that have occurred without this happening.
