Not a problem:
Posted on 03/04/2009 11:45:13 AM PST by txmissy
WASHINGTON — The head of the Federal Deposit Insurance Corp. has warned that the fund insuring Americans’ bank deposits could be wiped out this year without the money the agency is seeking in new fees from U.S. banks and thrifts.
FDIC Chairman Sheila Bair acknowledged, in a letter to bank CEOs, that the new increased fees and hefty emergency premium the agency voted to levy last week will bring a “significant expense” to banks, especially amid a recession and financial crisis when their earnings are under pressure.
“We also recognize that assessments reduce the funds that banks can lend in their communities to help revitalize the economy,” Bair wrote.
But given the accelerating bank failures that have been depleting the deposit insurance fund, she said, it “could become insolvent this year.”
“Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative,” Bair wrote in the letter dated Monday to the chief executives of the nation’s 8,305 federally insured banks and thrifts.
(Excerpt) Read more at chron.com ...
I don’t have any management experience either but it’s pretty obvious that Obama’s been making pretty dumb decisions, even if you agree with his ideas. He’s sort of like Rainman: great in one thing and totally incompetent in everything else.
Have you seen the term "floop" to describe the self-reinforcing feedback loop driving the debt-deflation cycle? I guess it works just as well with human behavior.
“Russia in the Caucasians, China in Southeast Asia. Nobody to stop them now. “
and it won’t be al qaeda that takes over Iraq after we leave. It will be nuclear armed Iran.
Here is the conundrum. If everyone loses their bank money, I doubt they will vote to re-elect Obama (this, of course, assumes we actually have an election in 2012). So, Obama/scared Democrats won’t let that happen because it will cost them their jobs. So... they will pump money into the banks like crazy to save the system and, voila! Poof! Presto changeo! The currency collapses and we are still screwed...
>> They were handy for tips when we used to go out to eat before Oprah told us not to.
The last time I caught a glimpse of Oprah, she filled an entire wide-screen teevee to capacity.
I don’t think she’s taking her own advice!
And that is what I am wondering. I've prepared for a "bank holiday or holimonth," but you are right. If there is no insurance and/or the revalue your money for only 1/3 what you've saved...? Naw...better in the safe under the floor boards. Even if for a little while after the final collapse.
Bingo!
But that's the entire point, isn't it? To force the central government into default in order to collapse the welfare state? It almost happened to Calif 2 weeks ago - oh so close.
I mean, how else do think we're gonna win this revolution - with guns & "tea parties"? LOL - look, this is serious business. In the cold light of reality, if we really want to win this thing, all we have to do is use these series of events to our advantage.
The simple truth is that .gov cannot float another new issuance of Treasuries to cover FDIC shortfalls in the range of $1-2T. Actually, depositors are the least of Hussein's worries - it's the other $1-2T in both equity and bond holder losses from bank defaults that keeps the Kenyan's minions up at night.
Pity the holders are foreign governments and big public sector pension funds like CalPERS. Now you know why HRC was whoring out our country to the Chinese last week. They sure as h#ll ain't gonna pony up any more cash to finance BHO's fantasy budget if the value of their holdings goes to -0-.
No Treasuries, no Bambi paying off deadbeats' mortgages. Simple as that.
Beats gold.
>> But that’s the entire point, isn’t it? To force the central government into default in order to collapse the welfare state? I mean, how else do think we’re gonna win this revolution - with guns?
With all due respect — and I mean that sincerely, I enjoy your posts — you are the quintessential “velvet revolution” hammer, so every thread looks like a “bring down the socialist government” nail to you.
But to answer your question, no, that was not the point of the OP in starting this thread. She was posting what amounts to a comment — an irresponsible one, IMO — from a highly-placed government official about FDIC insolvency that simply ain’t true.
End-game outcome aside, millions of Americans must live their lives somehow over the next months: feeding their children, putting gas in their cars, taking care of their elderly and infirm, struggling through their jobs, and so forth.
False talk of a panicky “situation” that could lead to a bank run is simply NOT helpful to the average American at this point.
There’s plenty of REAL stuff to worry about — and plenty of education of the less financially astute that would be useful. This sort of exercise squanders credibility.
FRegards.
Not a problem:
good news.
the faster it happens the faster we can have the revolution and let the cannabalism wipe out the blue cities and then the faster we can rebuild
this will definitely improve investor confidence
>> Have you seen the term “floop” to describe the self-reinforcing feedback loop driving the debt-deflation cycle? I guess it works just as well with human behavior.
No, I haven’t seen that one, and it sounds interesting. Googling wasn’t productive. Do you have a link?
Unless the Chinese think they can lend us the money, take us down as the world's super power and then keep us consuming their products at some meaningful level because we are all addicted to Chinese products. Debtor in possession can be painful.
Thanks
I agree with you — better to have the dollars in “paper” in my possession, worth anything or not, than to have absolutely nothing but some useless bank statement.
It will be a lot harder getting the dollars out of the bank than buying a safe. Banks are balking, big time, at releasing more than $1K, I have found. I am not kidding. I, too, have a little set aside for a “bank holiday” or other crisis like earthquake. Put some of it back at the urging of a “friend” who persuaded me it’s bad to keep money at home. This is a person who has lost 60% of his “wealth” in the stock market in one year. Maybe he just wants me to be in the same boat?
I wonder if this is the gambit 0’s government intends to use to confiscate IRAs. Cause a run on banks, declare a bank holiday, seize all the assets of FDIC insured institutions, redistribute the assets to be “fair” to everybody for the common good. I guess I’m just paranoid, but I don’t think I’m going to let the realization that I’m paranoid stop me from taking steps to keep the government from stealing my money.
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