FDIC insurance fund headed toward insolvency this year

[StageLeft]

Link

Federal Deposit Insurance Corp. Chairman Sheila Bair said the deposit insurance fund could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency.

What does this mean for us? I assume that the gov would step in with money to cover the difference, right? Is it really so stupid to empty our savings, as individuals with savings, before this happens?

 

[Genx87]

This has to be because of deregulation

 

[piasabird]

Obamma presidency never met a tax they dont like.

Soon there will be carbon trade taxes on your Electric Bill.

Hope you like paying $100.00 extra on your electric and gas bills!

 

[StageLeft]

Originally posted by: piasabird
Obamma presidency never met a tax they dont like.

Soon there will be carbon trade taxes on your Electric Bill.

Hope you like paying $100.00 extra on your electric and gas bills!

Interesting. How is this relevant to the FDIC insurance fund headed toward insolvency, though?

 

[nobodyknows]

Fearmonger!!

 

[OrByte]

Someone refresh my memory:

Didn't we increase the holdings for FDIC last year along with the levels of "insured" of individual bank deposits?

 

[palehorse]

DOH!

Well, we already know that Obama always has his checkbook handy...

 

[JSt0rm]

Originally posted by: palehorse
DOH!

Well, we already know that Obama always has his checkbook handy...

Well what do you suggest? Let fdic go down and everybody run on the banks?

 

[Skitzer]

Originally posted by: Skoorb
Link

Federal Deposit Insurance Corp. Chairman Sheila Bair said the deposit insurance fund could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency.

What does this mean for us? I assume that the gov would step in with money to cover the difference, right?

Yes, you are right.

 

[JSt0rm]

I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

 

[nobodyknows]

Originally posted by: JSt0rm01
I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

 

[OrByte]

Originally posted by: JSt0rm01

Originally posted by: palehorse
DOH!

Well, we already know that Obama always has his checkbook handy...

Well what do you suggest? Let fdic go down and everybody run on the banks?

I think even a hint or a rumor of FDIC drying up in the MSM will cause such a run.

Regardless of whether or not the Government steps in and says our money is safe.

 

[StageLeft]

Originally posted by: JSt0rm01
I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

This is true. The only thing I'm really sure about is that the sh*t storm is coming. I have limited confidence in the rest

 

[JSt0rm]

Originally posted by: nobodyknows

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

lousy interest with no risk vs no interest? hmmmmm.

 

[StageLeft]

Originally posted by: nobodyknows

Originally posted by: JSt0rm01
I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

Where is a better interest rate without a concerning level of risk at the moment? Money market funds hardly give much of a better return.

 

[nobodyknows]

Originally posted by: JSt0rm01

Originally posted by: nobodyknows

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

lousy interest with no risk vs no interest? hmmmmm.

There is always risk. Even having your cash at home in a safe with someone always present has an element of risk involved.

 

[43st]

Originally posted by: nobodyknows

Originally posted by: JSt0rm01
I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

I'm all in the bank, or stable value... and I think holding at 0 to +1% is pretty good right now. I guess you're over 3%.. is this investment located on this planet?

(wow, remember the 401k threads from two years ago? "blah blah I'm making 30%, you're only 25% you suck blah blah".)

 

[nobodyknows]

Originally posted by: Skoorb

Originally posted by: nobodyknows

Originally posted by: JSt0rm01
I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

Where is a better interest rate without a concerning level of risk at the moment? Money market funds hardly give much of a better return.

When you don't have much cash maybe the best thing to do is to keep it close? If everything does go to hell I think cash will be king.

 

[RichardE]

This was a worry before when the first bank failures began happening. As it stands, it is only a worry if the banks keep failing through 2010-2011. (As states in the article actually).

So realisticly, if the banks keep failing through 2010-2011 FDIC insurance will be one of the last things on peoples minds.

If anything, the actions of the FDIC, actions dictated by unplaced fear of "what ifs" could be one of the dominoes that fall that result in a self fulfilling prophecy (bank failures) depending how large this *one time fee* is.



What I find truly interesting, is I think only the OP and I read the article.

 

[nobodyknows]

Originally posted by: 43st

Originally posted by: nobodyknows

Originally posted by: JSt0rm01
I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

I'm all in the bank, or stable value... and I think holding at 0 to +1% is pretty good right now. I guess you're over 3%.. is this investment located on this planet?

(wow, remember the 401k threads from two years ago? "blah blah I'm making 30%, you're only 25% you suck blah blah".)

90% of my wealth is in land. Everything I have is paid for and my only real concern is making sure I have enough cash on hand to pay the taxes on it.

 

[StageLeft]

When you don't have much cash maybe the best thing to do is to keep it close? If everything does go to hell I think cash will be king.

Guns would be king, but I see your point. Chances of a housefire are less than an economical one at the moment!

What I find truly interesting, is I think only the OP and I read the article.

I often reply without answering, but yeah this is possible I want to be ahead of the curve. If there is a run on the banks I want my money out!

 

[sciwizam]

Instead of a one time fee, what about a fee/transaction? A cent or a fraction of cent per transaction, I don't know the number of transactions per day, but there might enough to build up the reserve.

 

[TallBill]

Originally posted by: 43st

Originally posted by: nobodyknows

Originally posted by: JSt0rm01
I love how everybody comes in here with zingers but really no solutions. Its weak sauce. Really it is. I have no idea what the best course of action is in this shit hole and I'm surprised some of you are so sure that spending money isn't going to get us out of the shit storm. Its scary people can be so sure of themselves in times like this.

Maybe, but if you're already converted to cash I fail to see why one would leave it in the bank to get a lousy interest rate?

I'm all in the bank, or stable value... and I think holding at 0 to +1% is pretty good right now. I guess you're over 3%.. is this investment located on this planet?

(wow, remember the 401k threads from two years ago? "blah blah I'm making 30%, you're only 25% you suck blah blah".)

I'm all in the stock market, because I want to make a return on my investments. But I'm not a "right now is the right time" investor. Regular monthly investments for the win. Play the average of the market over a LONG period of time.

Btw, my bank has 3.5% CD's right now.

 

[JEDIYoda]

Originally posted by: piasabird
Obamma presidency never met a tax they dont like.

Soon there will be carbon trade taxes on your Electric Bill.

Hope you like paying $100.00 extra on your electric and gas bills!

anything to blast Obama.
What is sad is people like you actually believe your garbage!

 

[TallBill]

Originally posted by: JEDIYoda

Originally posted by: piasabird
Obamma presidency never met a tax they dont like.

Soon there will be carbon trade taxes on your Electric Bill.

Hope you like paying $100.00 extra on your electric and gas bills!

anything to blast Obama.
What is sad is people like you actually believe your garbage!

Like who?