Posted on 10/21/2011 10:00:33 PM PDT by oneolcop
But, if the dollars are worthless they won't have any trouble paying up.
You’re ignoring that the insurance can fail (or the funds be diverted to those with better connections), or be paid out in nearly worthless print-o-matic FRNs.
I’m thinking local credit unions are the place to put cash savings.
For someone who thinks that “correcting” someone on something they didn’t say, and then YOU do and keep doing it, well,...
what a stodgy grump!!!!!!
Get your head out of the sand before you asphyxiate yourself!
Sure. But if that happens, we have larger problems than insured deposits. Which means even if you get your funds out in time, they’re worthless in your hands. It sure as heck can happen. But if you are looking at a single bank failing, albeit a large one, you don’t lose the bill-paying money in the checking account.
I had my accounts at an S & L back in the ‘80’s. I’ve seen it happen. In fact, BoA was the bank that bought out my S & L. My checking account paid my rent and electricity checks. Loans were expected to be paid on time. It was seamless.
You made it personal repeatedly. I just replied in kind.
That’s what I’ve been saying here. Some don’t understand that FDIC “insurance” isn’t just some fund and when its out its out. It is “deposits are backed by the full faith and credit of the United States Government” so if it fails, the US government has gone into default and at that point your dollars are screwed whether they’re in a bank, a credit union or under the mattress.
Sir, you sling it around, but you can not admit to doing assumptions of others yourself.
Go get a brain. Endless drivel of false assumptions and then complaints are the providence of cowards.
And YOU posted to me first, idiot.
“So how is it people with normal checking/savings accounts will lose their money if BofA dies?” from post #9
And you just didn’t like my answers. Deal with it.
The accounts are insured by the FDIC. The FDIC is essentially insolvent. Congress can and maybe will, put some money into the FDIC. But it’s tax dollars, not bank contributions that will have to bail out account holders. And then, there will likely be a delay before accounts are settled because the FDIC won’t be able to force another bank to buy BofA’s liabilities. No bank is big enough to cover the losses.
http://seekingalpha.com/article/95129-fdic-insurance-fund-it-doesn-t-actually-exist
Don’t let me interrupt your la-la land...
What la la land?
You are NOW agreeing with me.
your post “If FDIC doesn’t pay its stated obligations the US government is in default.”
A quote from your link:
“As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government’s general coffers for “spending . . . on missiles, school lunches, water projects, and the like.”
So,
THANK YOU FOR SAYING WHAT I HAVE BEEN SAYING ALL ALONG.
That wasn’t hard, now was it?
This entire country is on the edge of default, banks and the whole shebang included. I have not posted anything different. I can only conclude that your own bias was preventing you from understanding my posts.
Wow you are dense.
There is no FDIC fund, never was.
Peoples “FDIC” insured deposits are in fact “backed by the full faith and credit of the United States Government” which simply means when and if peoples deposits are not made whole again after a bank failure the Unit States Government has defaulted - my point all along. And if the government defaults, your money isn’t safe anywhere, the money system as we know it is over.
You said: “And all you Freepers who think your save because you could still access your BofA accounts, wake up!!!!!”
And I asked: “So how is it people with normal checking/savings accounts will lose their money if BofA dies?”
You said: “What makes you think the FDIC has any money?
All those banks they have been closing? Since 2008?
The government would have to back up the FDIC.
That is why the FDIC was against it. The derivatives are bigger than the FDIC.
The FED’s won, and they want their bailout. One way or another.”
Which didn’t answer my question how normal customers where going to lose their money. The fact is “The govenment” is FDIC, you fundamentally misunderstand what FDIC is and my question/statement was regarding normal checking/savings accounts not derivatives, etc. BofA investors may well lose their shirts, but not the normal customers with checking and savings accounts, something you implied to be otherwise. Then you go off the rails making things personal about “fantasies” and “needing more independent thought”, etc. when what I said was factually correct and what you said was not.
There is no FDIC fund. Never was.
FDIC collections are just a tax collected from banks (customers).
FDIC payouts come from the treasury - tax/debt money.
FDIC “insurance” is setup as “deposits are backed by the full faith and credit of the United States Government”, their own language from the 30’s. So when normal depositors lose their money from a bank failure, the United States Government has gone into default. At that point everyone has lost their money, dollars will be worthless.
Now I’m not saying none of that won’t happen. I’m just saying if it starts with BofA it ends with everyone.
“Full Faith and Credit”
In light of apparent systemic risks facing the banking system, the adequacy of FDIC’s financial backing has come into question. Beyond the funds in the Deposit Insurance Fund above and the FDIC’s power to charge insurance premia, FDIC insurance is additionally assured by the Federal government. According to the FDIC.gov website (as of January 2009), “FDIC deposit insurance is backed by the full faith and credit of the United States government”. This means that the resources of the United States government stand behind FDIC-insured depositors.”[35] The statutory basis for this claim is less than clear. Congress, in 1987, passed a non-binding “Sense of Congress” to that effect,[36] but there appear to be no laws strictly binding the government to make good on any insurance liabilities unmet by the FDIC.
We all know what will follow if they don’t.
No bank will be left standing.
no bank: no dollar: no economy...
Pretty much.
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