Not that the interest is that high these days.
Wonder if the Feds and FDIC are required to keep the “insurance” money (or a large percentage of it) in escrow or other assets just in case they need it. Probably not — betting that they are not required to follow the same laws that they require the private sector to follow.
Just a promise to pay like Social Security, etc.
And what happens if they default — just print more money I guess.
What a scam.
Exactly.
The cash reserve is something like 0.06% of deposits at the moment.
So, yeah, it would be printing time, big-time.