FDIC set to fail

[MrDODGE]

CNBC: "FDIC could fail if Washington Mutual or any bank near that size goes under."

 

[dhpar]

FDIC would be always bailed out 100% by the treasury. this insurance is as secure as constitution....

 

[The Kin]

No wonder the FDIC left WM off the early warning list.

 

[gnome]

Quote from dhpar:

FDIC... this insurance is as secure as constitution....

Oh, well then we are F*CKED! Constitution has been trampled in recent years... and beginning in October, FBI will have the authority to initiate "warrantless search"... a violation of 4th Amendment...

 

[staffpro]

Quote from MrDODGE:

CNBC: "FDIC could fail if Washington Mutual or any bank near that size goes under."

Because of INDYMAC which apparently blew out half its reserves, the fdic has already raised its insurance rates for problem banks from 5 cents/$100 to i think triple or quadruple that for the problem banks. But yeah in any case the treasury would bail them out AND they would put something through like for fnm and fre where they profit off it. (in like 5 years, no way they would profit off it now)

 

[paysense]

". . .as secure as constitution" - lol - if government keeps bailing out institutions, who'll need a constitution!

paysense

 

[GermanTrader]

Quote from paysense:

". . .as secure as constitution" - lol - if government keeps bailing out institutions, who'll need a constitution!

paysense

Agreed. Government tampering in private business is tantamount to socialism. Right up Hussein's alley! So don't expect a change anytime soon.

 

[dhpar]

lol.
well clearly i should be using words more carefully on this site.

anyway - fdic is implicitly much more state owned than fnm/fre.
fdic creates the basic trust in fiat monetary economy we have today - without it people will save much more in commodities and under the mattress, i.e. without the famous multiplier effect.