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FDIC and your bank account

Discussion in 'Political Discussion' started by Holy Diver, Sep 16, 2008.

  1. Holy Diver

    Holy Diver Pro Bowl Player

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    #80 Jersey

    I'm reading this now, can this be true that the FDIC has 50 billion to insure over 1 trillion in assets for average citizens with insured bank accounts with said FDIC?

    Top Economist Americans Should Worry About Bank Deposits if Congress Doesn't Act: Tech Ticker, Yahoo! Finance

    But Americans are justified to be worried, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a "slow-motion run on retail banks" occurring nationwide.

    That "run" could accelerate as people realize the FDIC fund has about $50 billion to "insure" about $1 trillion in assets at the nation's financial institutions, says Roubini. "They're going to run out of money" unless Congress acts soon to recapitalize the FDIC.



    Yesterday we were discussing this 'crisis' and some here were stating that this is like the 2nd inning of a 9 innning smackdown.


    needless to say this is kinda freaking me out ....
     
    Last edited: Sep 16, 2008
  2. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Roubini is the hottest economist in the country right now. He predicted most of what is happening. He also uses the baseball metaphor to describe the "recession" we're entering. he says that we're only in the second inning at this point in time.

    "We are in the second inning of a severe, protracted recession ... A systemic banking crisis will go on for awhile, with hundreds of banks going belly up."

    MyProps.org - Barron's interviews Roubini: "We are in the second inning of a severe, protracted recession ... A systemic banking crisis will go on for awhile, with hundreds of banks going belly up." - Housing Bubble and Bear Links
     
  3. Holy Diver

    Holy Diver Pro Bowl Player

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    #80 Jersey

    I guess my concern is with MY money that I have in a bank that is supposidly insured by an institution with 50% of the assets to insure it.

    I'm not an economist, but I understand that 50% doesn't = 100%. Infact, its about half.

    Should I be concerned?
     
  4. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Of course we should all be concerned. My guess is that the fed will re-fund the FDIC with enough cash to fully insure everything. As a matter of fact, that should have been done BEFORE they bailed out Fanny & Freddie:rolleyes:

    But nothing is guaranteed, so I'm concerned too!
     
  5. mcgraw_wv

    mcgraw_wv In the Starting Line-Up

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    From my understanding, the FDIC insurance money comes from it's member banks... Each bank that is FDIC insured has to pay into the FDIC to cover the possible losses... I also read somewhere that the FDIC, feeling it was well capitalized a few years ago started to waive the fee ( wish our insurance worked like that )

    So, I believe once again, Tax payer money will need to be used to help and fix a government oversight.
     
  6. Holy Diver

    Holy Diver Pro Bowl Player

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    #80 Jersey

    my math sucks too....

    thats only 5%
     
  7. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #24 Jersey

    It is a well known fact that there is not money in reserve for all the money on deposit ... hasn't been that way since we backed everything with gold.
     

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