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Bank Deposit Insurance May Tank


Entry #9


justxploringComment by justxploring - March 6, 2009, 1:03 am
Yes, I agree that FDIC might need to borrow money from the government. But if they gave over $100 billion to AIG, do you really think they'll let FDIC fail?
justxploringComment by justxploring - March 6, 2009, 1:31 am
Jack, sorry for the additional comment, but of course the news is very disturbing and it's difficult to follow with so many reports contradicting each other.   I've seen this mentioned in several newspapers, but like Yahoo, they all seem to mention only part of the story.   FDIC is asking for an increase in their credit line. The AP article goes on to say:

FDIC spokesman Andrew Gray said the idea behind increasing the credit line is to give the agency additional flexibility in funding, and is unrelated to its ability to meet obligations to bank depositors.

The FDIC is "backed by the full faith and credit of the United States government," Gray said. "We can and always will be able to meet our obligations to depositors."
JAP69Comment by JAP69 - March 6, 2009, 7:30 am
I get up this morning and see the web headline FDIC is looking for a 500 billion credit line from the treasury.
Then I see another headline of most big corporations tanking.
The stock market will be below 6,000 today.

Rick GComment by Rick G - March 6, 2009, 8:32 am
They may be able to back depositors if they can print money fast enough. But when a loaf of bread costs $100 it will be a moot point. Smart depositors will withdraw their money and invest in the loaf of bread today while it's $2. It's all an illusion folks...paper money represents nothing of tangible value. Investors would be wise to gear their investments towards sustainability. $250,000 can buy a few acres of arable land with a water supply, seeds, farm equipment, etc.
time*treatComment by time*treat - March 6, 2009, 8:39 am
Open a new account, get a free wheelbarrow.

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