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As of Friday August 14, 2009, FDIC is Bankrupt

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TwixVoy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 12:24 AM
Original message
As of Friday August 14, 2009, FDIC is Bankrupt
From articles I have read recently with the latest round of bank failures this last Friday (which included the biggest bank to fall since WAMU) *technically* the FDIC has now run out of cash. Of course I say technically because the feds will certainly print more cash to cover it as needed.

Pretty damn scary though.... If the general public were to feel the FDIC will no longer be able to protect their deposits it could cause a major bank run nation wide, and that would be a complete disaster. This is one to keep an eye one.


http://globaleconomicanalysis.blogspot.com/2009/08/as-of-friday-august-14-2009-fdic-is.html
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CreekDog Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 12:26 AM
Response to Original message
1. FDIC backed by full faith and credit of the USA
reading so many articles, you have not come across this?
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TwixVoy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 12:30 AM
Response to Reply #1
3. Read my post?
As I said the feds would never let the FDIC fail.

Problem is if we have another down turn how long can we keep printing money to cover these losses? Forever, actually... but if we continue to do that we will start running in to some seriously bad consequences.
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CreekDog Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 12:34 AM
Response to Reply #3
4. apparently not
:rofl:
:hide:
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no bad days Donating Member (83 posts) Send PM | Profile | Ignore Mon Aug-17-09 12:30 AM
Response to Original message
2. Maxine says............
Leave it to Maxine to point out the obvious



Maxine on the bailout!



"BAIL EM OUT! ????

Hell, back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!"





Progressive as I may be thats just funny.....in as sick sort of way.
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JDPriestly Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 01:47 AM
Response to Reply #2
6. Before the days of "privatization" the government
won WWII. Since we privatized so much of our military service including now the provision of water, food and fuel, our military can't do a darned thing right.

Actually, as one who is 66 years old, I recall that when the government did things without contracting so much of the work out to private firms, the government was much more efficient. Everything worked better -- especially considering we did not have the computer technology and other technology that we have today.

Last week, I had to get a refund from my mega-bank (too big to fail, one of those). Only $55 was at issue, but for a certain reason, I had to be very careful that the account was perfectly balanced, perfectly taken care of. Now, mind you, when I had closed the account, I had gone to the bank personally and asked the teller to check the account balance and then issue a cashier's check to close the account. She did that. Nevertheless, a couple of weeks later, I received a statement showing and overdraft and the assessment of a $55.00 fee. The first time that I called to request that the situation be straightened out, I had to hold for 51 minutes. Finally, I just hung up, got in my car and drove to the bank. I waited easily a half an hour before I could talk to the bank manager. She advised me to do a certain thing. I went home and, the next morning, took the action that the bank manager had advised. Her suggestion did not work. I tried to call the local bank but got no answer. So, again, I drove to the bank only to learn that the manager was not in and would not be in until the next day. The next day, I returned to the bank. The bank manager gave me another number to call. I called that number, but it too was a wrong number. After yet another half an hour on hold, transfers from one number to another, one person to another, I was given yet another number to call. I was finally able to get my problem resolved.

A little over a year ago, I signed up for Social Security and Medicare. I called, was given an appointment, went to the Social Security office, received excellent efficient assistance in filing my claim. The person who counseled me in the Social Security office was competent, quickly answered each of my questions, advised me fully on my options. And I have timely received my checks ever since. No fuss. No muss. The government office was the epitome of efficiency and polite service.

Right-wing extremists will tell you that the government cannot do anything right. I will tell them and you that private enterprise does not do anything right. We can thank our current mess to private greed.
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PBS Poll-435 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 12:46 AM
Response to Original message
5. 500B credit line authorized earlier this year
Bank fail FAIL.
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Warren DeMontague Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 02:11 AM
Response to Original message
7. Someone hawking gold, again?
Just a guess.
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leveymg Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-17-09 04:43 AM
Response to Original message
8. Who has money in the bank these days, anyway?
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