Is The FDIC Bankrupt?

The Financial Physician ^ | August 18, 2009 | Lou Scatigna

[Man50D]

The country is bankrupt!

[Cheap_Hessian]

socializing risk and privatizing profits is a dangerous game

[muir_redwoods]

By standard rules of accounting every insurance company is already bankrupt since no insurance company of any kind is so well funded with reserves that it could pay off claims for all insureds should they all come at once. Insurance companies rely on actuarial expectations of loss and are funded accordingly.

Should all or very many banks fail in a short period, the FDIC would fail.

Please remember that it is the Federal DEPOSITORS Insurance Company. The FDIC insures depositors, not banks. You are only covered for the stated limits of (I think ) $120,000 irrespective of how many banks you have your money in. No one gets more than the one time maximum.

[Daisyjane69]

YES!

Chef Boyardee and junk silver time!

:)

[dinodino]

I think you’re wrong on that one. It’s my understanding that the FDIC insures your accounts at each institution up to $100,000...

[cowtowney]

“There is no way the FDIC will not make good on any and all insured deposits.”

It’s having a difficult time borrowing the money, so will resort to just printing it. Look out below.

[louscat]

FDIC currently insures accounts up to $250,000 individual and $500,000 joint. This increased limit is in effect until January 1, 2014

[This_far]

Chef Boyardee

best spag in jar sauce </thred drift>

[KoRn]

"The country is bankrupt!"

Sad, but true. If we go much further into debt, we won't even be able to pay the interest. When you have to borrow money to pay your debts, you are financially dead.

[cowtowney]

Not sure why you posted that
is it a response to my post?

[taxtruth]

Great government via the blind leading the blind.Look what these people have done to the wealthiest nation in the world.I guess they will crank up the printing presses and bury our unborn great grandchildren a little deeper in debt.The fed has got to go because we can't afford them.

[Nervous Tick]

>> You are only covered for the stated limits of (I think ) $120,000 irrespective of how many banks you have your money in. No one gets more than the one time maximum.

That’s disinformation. Otherwise known as bull$h!t.

There’s enough to worry about in this economy without making up “facts” and spreading them around.

Please go here and learn the facts:

http://www.fdic.gov/deposit/deposits/index.html

FRegards

[pa_dweller]

There are undoubtably many more bank failures to come before the financial crisis is over

undoubtably ?

[CPOSharky]

That’s enough money to keep the AF1 fleet in fuel for at least another two weeks.

[blam]

"Chef Boyardee and junk silver time!"

You're way late to the party.

[louscat]

yes it was a response to your comment regarding FDIC insurance limits

[louscat]

Oops thanks for the heads-up, my mistake.

[Petronski]

The current FDIC limits are $250,000 (or $500,000 for certain accounts) per depositor per bank.

[Petronski]

$250,000 per depositor per account (a typical husband-and-wife joint account, $500,000) per bank. No individual limit.

Using enough banks, one could deposit $25M into insured accounts.