Posted on 08/11/2012 10:37:16 AM PDT by E. Pluribus Unum
A majority of Republicans in the House voted AGAINST TARP.
Granted, still too many voted for it, but I wouldn’t say that virtually every Republican voted for it.
We should be busy getting rid of every Republican who voted for TARP in the House and Senate. We have made a good start on it.
By the way, Ryan voted for TARP.
The FDIC is broke !!
“All FDIC insured monies are completely protected. Even if the bank ran away with everything.”
This is a true statement and a fact. However, I’m fairly sure that the FDIC is insolvent.
.
I am lost. And I trust Ann.”
Be careful before you do something rash; there have been many many end of the world proclaimers over the decades.
Do your research. Panicking is a mistake 99.9% of the time.
If she knows that, maybe she just isn’t very good at communicating.
From FDIC sourves in Wikipedia:
“The DIF’s reserves are not the only cash resources available to the FDIC: in addition to the $18 billion in the DIF as of June, 2010;[32] the FDIC has $19 billion of cash and U.S. Treasury securities held as of June, 2010[32] and has the ability to borrow up to $500 billion from the Treasury. The FDIC can also demand special assessments from banks as it did in the second quarter of 2009.[33][34]”
This looks like as of June 2010, they had $37 billion, even after bailing out so many banks that the available funds (without considering any lending facilities) had been as low as $13 billion at its all-time lowest in March 2009.
So, it shows things are improving, so what exactly is the problem again?
In 2010, they had -$7 Billion in reserves. They didn't clear the negatives until 2011.
From their increase in cash and cash equivalents, I'd say they are doing pretty good at this time. Have you pulled your cash out of FDIC insured accounts to be "safe?"
The FDIC was definitely shaken during the 2008-2010 period. Their reserves were depleted because they had to liquidate, transfer accounts, etc., a substantial number of banks. If you want a good horror story, just read the FDIC reports from 2009 and 2010 to get a very clear picture of just how bad things were.
ConservativeMind and I have been going back and forth on some of the details, but as of today, the FDIC is solvent again. I don't know if they have enough in reserves to meet their goals, but they are no longer running in the negatives.
Unfortunately, whatever cash on hand my family had got wiped out more than a decade ago from catastrophic medical bills. It was a long slow crawl out of the hole, but we are clear of the medical debt.
Two of our four nest eggs were also wiped out in the process.
The two remaining are my husband's 401K, which lost value, and a whole life policy, which continues to appreciate substantially.
The "new normal" is "old hat" for my family. I've known for years that retirement is no longer an option, but I have a beautiful, loving daughter and two healthy sons, so it was all worth it.
My husband and I have talked extensively about what we should do. We're still keeping an eye on Europe, and waiting for the other shoe to drop. At this point, we're keeping our expenses low and supplies on hand. I wouldn't recommend anyone make major changes, unless they are using reserves to clear debt off their ledger.
When the economy contracts again, and it will, those with little overhead and working in essential industries will fair better than those living on the edge.
I think it's quite rudimentary to someone familiar with the organization of the industry and the scope of its regulators.
The question is - how much money do the people have in banks vs how many billions are you two arguing about?
The bottom line is the FDIC doesn't have 1/1000th the amount of money it should have for it's stated purpose and prepaying premiums has only made it artificially 'solvent' RIGHT NOW. What happens when they've spent it (and likely already have)? Money printing? How solvent of them.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.