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FDIC's Bair warns on bank deposit insurance fund
Houston Chronicle ^

Posted on 03/04/2009 11:45:13 AM PST by txmissy

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To: dr_who
Credit default --> X --> Collapse of Welfare State. X=?

X comes later in the equation. We already saw what happened after Katrina. Coming at some point to the major Democratic urban centers in America.

221 posted on 03/05/2009 6:58:48 AM PST by semantic
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To: Freedom_Is_Not_Free
Nobody is going to lose a dime in FDIC insured funds and in fact never has. Uncle Sugar has a huge printing press and will print as much as needed to cover the FDIC insured funds.

Baghdad Bob, is that you? LOL

The FDIC is upside down to the tune of $1-2T if the big 4 banks go belly up. There's no way the federal government can raise that much money with new Treasury sales (in order to back the FDIC).

So the question becomes: would the Fed take a chance to print that much new money? It would have some serious inflationary consequences.

Right now, many people think we'd merely have a 1 week/month 'bank holiday' where .gov "promises" people they will eventually have their money when the banks re-open. Hussein's plan all along has been to kick the can down the road to buy some more time in the hope that things get better.

Things aren't getting better, and that's even before something like "save more, spend less" becomes a political mass movement amongst conservatives to really put the squeeze on the Kenyan.

222 posted on 03/05/2009 7:08:29 AM PST by semantic
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To: prairiebreeze

mark post 17


223 posted on 03/05/2009 7:46:18 AM PST by prairiebreeze (These are the times that try men's souls.)
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To: yefragetuwrabrumuy
This is absolutely true. In September I went in to redeem 2 CD’s in cash, and had to wait 4 days for the cash to arrive at the bank. I was astounded that the bank could not give me the money upon demand because they didn't have it! It scared me, and I don't respond well when scared. I had the president of the bank sounding like Zero “um, uh, but, um, uh, well”, etc. This isn't millions we're talking about, just a little over 83k, and they didn't have it!

I admit I had my Irish up, and was louder than a lady should be. I caught the eyes of a lot of worried looking bank employees looking at me when I walked out of his office. I hope they were scared too.

224 posted on 03/05/2009 8:10:24 AM PST by graywaiter (You can't multiply wealth by dividing it.............Dr. Adrian Rogers)
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To: graywaiter
Many, many years ago.....probably around '76 or so..I had around $5k in a BOA branch. I was buying a truck...for $4.8k..and the guy wanted cash.

I drove to the bank, and asked for my $$ in cash. The teller said she couldn't do that.

I asked why..and she said she didn't have that amount of cash. She said she would have to give me a check. I explained what I was doing...and needed the cash. She again said...she didn't have that amount...and then slipped out..that the only place they had that amount was in the vault. Of course I jumped on that...and said well then open the vault and get it! She said she couldn't do that....then slipped again..and said the only one who could do that was the bank manager. I of course...: ) say...well, go get them.

Anyway....long story short..it was like pulling teeth, but they finally gave me the cash...and I have never banked with BOA again because of that incident...and another one..But that's a whole other story....lol

225 posted on 03/05/2009 8:23:46 AM PST by Osage Orange (Our constitution protects aliens, drunks and U.S. Senators. -Will Rogers)
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To: ari-freedom
and it won’t be al qaeda that takes over Iraq after we leave. It will be nuclear armed Iran.

I wonder if nuclear Iran is Persian for Al Qaeda?

226 posted on 03/05/2009 8:37:50 AM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: Osage Orange
This was just really freaky. There could be no bank run at this bank, because they don't have any money! 3 people could wipe them out.

Once I got over the shock that they didn't have it to give to me, I got mad. I admit it, I didn't use my manners. I was an unhappy camper and the whole place knew it before I left.

When they called to tell me they had the money 4 days later, they suggested I hire THEIR security team to escort me off their premises, and I would be REQUIRED to sign a form stating that I was aware that the bank's security ended at their door. I didn't know they even had a security team!!

This is a small town in rural Va. While we have a small assortment of local thieves, this ain't exactly NYC. I thanked them for their concern and informed them that I had my own “security team” (DH & Pals) to escort me from their premises. Then I was told that bank policy did not allow for weapons to be anywhere on their premises except for “certified banking & security personnel”. I almost popped off that DH was a cop, (he's not), but I was able to control my mouth for a change and let it go.

I just wanted what was mine, and they made me jump through hoops to get it. I don't appreciate it, and will never put another dime in their bank. It's not like this was a tiny little local bank either. SunTrust, and they didn't have 83k to pay out at one time. Truly frightening.

227 posted on 03/05/2009 9:03:28 AM PST by graywaiter (You can't multiply wealth by dividing it.............Dr. Adrian Rogers)
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To: semantic
We already saw what happened after Katrina.

Yes, we saw a Republican congress replaced by a far left Democrat congress. Two years after that, we saw a center-right Bush administration replaced with a nutty left wing Obama administration. Is there someone to the left of Marion Barrie who can out-demagogue him? Count on it.
228 posted on 03/05/2009 9:12:40 AM PST by dr_who
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To: semantic

Thank you for that detailed and excellent reply! So we (the average Joes and Janes) should spend less money and consume less, thereby allowing the economy to contract, which in turn will starve the government of tax revenue.

Count me in! I need to save more and spend less anyway.


229 posted on 03/05/2009 10:41:29 AM PST by PatriotGirl827 (Pray for the United States of America!)
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To: PatriotGirl827
Count me in! I need to save more and spend less anyway.

And here's the beauty of the entire exercise: people are already saving more & spending less out of their own self interest.

In fact, I think I saw mention of Oprah advising her viewers to stop eating out as much. If libs had any brains, they'd be encouraging everyone to get a new, bigger loan and resume buying. That would jump start the economy and get the taxpaying serfs (um, that would be us) back to paying for their mortgages, food stamps, etc.

What 'save more, spend less' does is provide a positive focus on events. Since we're all doing it anyway, why not think about it as achieving something? Like reducing funding to the very agents of our oppression.

230 posted on 03/05/2009 11:00:29 AM PST by semantic
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To: semantic

Ok - another question. If I have my savings in a money market account, I am not helping to feed the beast, am I?


231 posted on 03/05/2009 1:50:43 PM PST by PatriotGirl827 (Pray for the United States of America!)
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To: girlscout

Just try to go to your bank and take out $250k in CASH, see what happens!!


232 posted on 03/05/2009 1:57:17 PM PST by PISANO
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To: PatriotGirl827

No, it’s invested in commercial paper. But you might want to check and see if it’s FDIC insured. If not, you might consider putting into a CD. Lower %, but at least you protect the principle.


233 posted on 03/05/2009 2:09:38 PM PST by semantic
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To: PISANO
Just try to go to your bank and take out $250k in CASH, see what happens!!

It will overdraw my account for one thing. :-)

234 posted on 03/05/2009 2:12:23 PM PST by girlscout
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To: girlscout

:-)

Thanks for the laugh.


235 posted on 03/05/2009 2:26:21 PM PST by green pastures
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To: semantic

I have a question. Say my only debt was with my bank and the payments are automatically withdrawn each month from my checking account. If the bank falters and my checking / savings is frozen and FDIC can’t cover it, what happens to the loan payments?


236 posted on 03/05/2009 2:26:54 PM PST by girlscout
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To: girlscout
You would be in a cash squeeze. You may consider keeping 1-2 mos of ready cash in a demand deposit at another bank or in a secure safe at home. Just sayin'.

We know of some people who lost money at IndyMac as they had deposits over $100k (before the FDIC limit was raised to $250k). One person lost part of her deceased husband's life insurance money, another part of her son's policy (he was KIA in Iraq).

It's just a good idea to spread things around.

237 posted on 03/05/2009 2:43:13 PM PST by semantic
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To: semantic

Thanks. Luckily I do have my money spread out in different areas. I understand that the bank would still want to be paid for the loan, I just wasn’t sure whether they would have a leg to stand on in regards to payment of that loan if they lost my money held in an account at their bank.


238 posted on 03/05/2009 2:53:47 PM PST by girlscout
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To: DoughtyOne

>>where good citizens have been more pissed off
>>at our leaders? I doubt it.

I concur. But, per Orwell, it’s likely that revolt is part of the design.

So rather than go down that path - I believe we should consider influencing Obama via his own children; and I don’t mean that in any threatening way.

I mean it’s reasonable to assume that Obama wishes to be seen as a moral man in the eyes of his children - and we should find ways to challenge him to be truly moral and meet their expectations.


239 posted on 03/05/2009 6:05:34 PM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: semantic

Yes, I am certain the Obama Administration will print all the money necessary to cover FDIC insured accounts that fail, be that one trillion dollars or five trillion. They will print. Yes. Count on it.


240 posted on 03/05/2009 7:31:02 PM PST by Freedom_Is_Not_Free (Depression Countdown: 79... 78... 77...)
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