FDIC Statistics: Read 'em and Weep

Barnhardt.biz ^ | 8/22/12 | Ann Barnhardt

[Kartographer]

Just following up with citations and illumination on the whole propaganda meme that is the FDIC, because, as far as I can tell, the vast majority of people think that the FDIC is a magical, omnipotent entity that has infinite resources and will magically swoop in to "take care of them" like a magic flying unicorn. This is what happens when you have a civilization filled with emotional children with exactly ZERO critical thinking skills. You have to hand it to the Communist infiltrators. That did a damn good job of brainwashing and psychologically destroying four generations of human beings.

Per the Q4 2011 FDIC Chief Financial Officer's report to the Board, published on March 30, 2012, the FDIC's Deposit Insurance Fund had a balance of $11.8 billion dollars.

[Kartographer]

You would be surprised how many Freepers think of the FDIC as omnipotent njust like flying unicorns!

[Kartographer]

PING!!!!

[blam]

But...but...

The FDIC is government, how can anything go wrong?

[Kartographer]

Well it could be something ‘unexpected’ happens. ;-)

[stocksthatgoup]

FDIC FNMA Freddie Mac Government Motors

[moonshot925]

"Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure."

FDIC

[Kartographer]

See I told you flying unicorns are omnipotent!

"But hey! It could be worse! Back in 2009 the FDIC was completely insolvent - IN THE HOLE. So what they did was to force all of the banks to pay three years worth of premiums upfront in one year, in order to replenish the fund.:

That's how close it came in 1999, and I don't see how a fix like that would be an option in today's economy.

[Kartographer]

See I told you flying unicorns are omnipotent!

"But hey! It could be worse! Back in 2009 the FDIC was completely insolvent - IN THE HOLE. So what they did was to force all of the banks to pay three years worth of premiums upfront in one year, in order to replenish the fund.

That's how close it came in 1999 2009, and I don't see how a fix like that would be an option in today's economy.

[Ken H]

Nonsense. Feds will make good on the deposits. Otherwise, it’s an immediate worldwide collapse. A default on this guarantee would be as catastrophic as a default on sovereign debt.

[Kartographer]

"Nonsense. Feds will make good on the deposits."

And how? By printing more money? That will work.

[Osage Orange]

Printing more Ben Franklins...isn't the answer.

[Ken H]

And how?

Same way they pay treasury debt.

By printing more money?

Yes.

That will work.

It will work as much (or little) for FDIC deposits as it will for treasury debt.

[Kartographer]

So borrow more is your answer? Yeah that will work.

[moonshot925]

And how?

By issuing treasury securities.

[Ken H]

Printing more Ben Franklins...isn't the answer.

As long as the US can pay treasury debt, it will also pay its FDIC obligations.

[Kartographer]

So borrow more?

[Ken H]

I’m simply stating an opinion that fedgov will give as much priority to making good on FDIC guarantees as it does on paying its sovereign debt. As long as it can pay treasury debt, it will also back up the FDIC.

[Osage Orange]

Nothing stopped them from stiffing the GM creditor's.

I've very little trust in our Federal Government....

[moonshot925]

So borrow more?

That is how we paid for the Civil War, WW1, WW2 and everything else.

Interest rates are near historic lows. The government is able to borrow gigantic mountains of money for next to nothing.

[PeterPrinciple]

On page 2 notice the change in anticipated failures for 2011 compared to 2010.

http://www.fdic.gov/about/strategic/report/2011annualreport/AR11section4.pdf