FDIC Insolvent?

**fuzzybunny** · 03-05-2009, 11:56 AM

Anyone else see this article?

http://www.bloomberg.com/apps/news?p...N3k&refer=news

What do you think? I don't mind admitting it makes me a little squidgy... I don't have much money in the bank but if it's true then it would seem to be the thing that would make the difference between a serious recession/minor depression to something much more devistating.

**Jellybeanz** · 03-05-2009, 12:33 PM

I did come across that article posted on another site and I just looked over it briefly again.

So you ask for thoughts.. here are mine. I believe there is no way the FDIC could cover all the depositers money .. no way in heck.

I think I read they have a fund around 18 billion or so and total amounts that would have to be paid out ( should every want it or whatever comes down the pipe) is like 3 trillion.

So 18 billion or so versus 3 trillion .. I wonder who would get their money first? Have a feeling it won't be me or you.

And I'm fairly sure there are some loopholes written into this FDIC stuff. You would have to go research that, I'm lazy, I just read what other people research mostly. :-)

We are being prepared incrementally for something pretty big I think. Living history as we speak kind of stuff.

So for anyone who says that FDIC is there, has got your back and don't worry.. well good luck and all.After all that we've seen this past year in terms of corruption, I can't believe anyone would believe that without some teeny bit of doubt.

This may be the only time in my life where the good news is I don't have a whole lot to lose . LOL

But.. I am concerned for those who do( most worked and saved all their lives for that money) and it would be a crime if they really did pull the rug out from under everyone who trusted in this promise with their money.

**rainbowgc** · 03-05-2009, 12:46 PM

Seems you money is safe no where these days

**TheMartianChick** · 03-05-2009, 06:03 PM

Originally Posted by rainbowgc

Seems you money is safe no where these days

My money is safe if I buy stuff that I know my family needs. I can stock up on food, tools, seeds, medicines, etc...and those items will be used up eventually by the family.

**HomeschoolMom** · 03-05-2009, 06:33 PM

Investing in the mattress fund sounds better and better every day....

**guest002** · 03-05-2009, 07:39 PM

I'm not stashing cash in my house. Oh heck no! I have confidence in my bank. I think that's the thing. Find a bank you trust in or get a credit union.

**C@rol** · 03-05-2009, 07:52 PM

Read this on Yahoo a little while ago. Scary as heck. FDIC is running out of money and the money market accounts have to participate in a goverment sponsored insurance that keeps the shares from going under a dollar. Like it's been said, there's no place safe for your money.

**onencgirl** · 03-05-2009, 08:19 PM

This is pretty scary reading but nothing surprises me anymore.

**HappyMama** · 03-05-2009, 08:23 PM

Yes I belong to an investor/research group , we also have a board that we discussed this as well as other things and it is very scary out there right now. Especially the hit the small banks will be taking on the new fees for them.

**McD** · 03-05-2009, 10:54 PM

Bankrate.com has their safety ratings of banks on its site. Click

HTML Code:

http://www.bankrate.com/brm/safesound/ss_home.asp

that and it will take you through it. they are based off the fiscal year end financials.

That may help you decide where you are safe to park your moolah.

**mzpepper** · 03-05-2009, 11:28 PM

So let me get this straight. The big mega-banks get bailout money and the smaller banks get hit with hefty fees that will wipe out 50 to 100% of their 2009 earnings. Yes I know they said “For risk-based assessments, our statute restricts us from discriminating against an institution because of size,” I say hogwash. I smell a big mega-rat.

**Denvergirlie** · 03-06-2009, 09:13 AM

Money is not safe anywhere, as it's nothing more than printed paper. It truely only has the value "we" have assigned to it. It's not backed by gold anymore, it's just fiat money now... all thru history every fiat based money system has failed....
Anyways, if it's gets that bad that the FDIC fails, the whole monetary system will "fail", dollars either in hand or in a bank won't make much of a difference.

Congress is now seeking to allow the FDIC to take 500B in loans... the current loan amount is 30B and they haven't used that credit in over 10 years.
http://www.foxnews.com/politics/2009...-fdic-billion/

The banks around the nation are being asked to pick up the tab with higher premiums... For example say that your bank paid $250K last year in all of 2008 into the FDIC "fund". Now the FDIC is pushing for $500K a quater, or $2Million for 2009... who do you think will pick up that tab? You and me. Thus the banks are "fighting" back.

It's gonna get scary folks, get prepared and stay prepared.

**JanieD** · 03-06-2009, 10:29 AM

I really hate all the gloom & doom, but some things really make you think the sky will fall. I think not having savings is a very scary thing. However, its a nightmare to for those of us who have saved to think we could lose it all due to this mess.

I agree with Denvergirlie that our dollars are only printed paper. I think Nixion was responsible, in part, for doing away with the gold standard. Big mistake IMO! If the banking system goes down, I'm not sure the dollar would be worth much of anything. I pray it doesn't come to this.

**Contrary Housewife** · 03-06-2009, 10:49 AM

Oh goodie, more scare-mongering. Notice the liberal use of "could" and "if" in that article. Notice the gal is justifying their fee hike with these scary comments.

Yes, if a _lot_ of banks fail the FDIC will run out of money. It was never designed to cover massive bank failures, just the collapse of one or two institutions a year. It doesn't mean the FDIC is going to dissolve suddenly.

Is your bank going to fail? What do you really know about what your bank does with your money? Are they heavily invested in real estate? Credit cards? Is their stock in the toilet? Are they offering high (4-5%) rates on CDs in an attempt to raise cash?

Don't just sit there and wonder. It is possible for you to research your bank and find out what they are up to, and what they do with your money, and how 'safe' they are rated in the industry.