Can the Governments FDIC run out of money? - GoFuckYourself.com

sweetredhead · 09-17-2008, 10:22 AM

So I am watching CNBC while i'm working and Smart Lunch is having a whole debate about can the FDIC run out of money.

I feel the public has put so much trust in the banking world and most didn't realize that this insurance only covers per depository not for each acct you have.

This is fucked if you have over $100,000 between accts you are only protected up to the $100,000, now the SPIC has higher limits in the brokerage world. But with all these firms going out of business and now the gov't is bailing AIG out of their mess.

The question remains:
Can the Governments FDIC/SPIC program run out of money?

kenny · 09-17-2008, 10:37 AM

yes.

but if that ever happens they'll probably just use the FED to inject capitol into it.

wiggitywack · 09-17-2008, 10:37 AM

I thought I heard the other day the FDIC has only $50 billion on hand.
One or 2 big depost banks like Washington Mutual goes down, they could be out of cash.

Then if other banks fail, the treasury would have to simply print more money to honor insured cash on those accounts. The result of that would be the dollar would crash and inflation would take off. Hoping none of this happens, but who the fuck knows now.

kenny · 09-17-2008, 10:38 AM

Quote:

Originally Posted by wiggitywack

I thought I heard the other day the FDIC has only $50 billion on hand.
One or 2 big depost banks like Washington Mutual goes down, they could be out of cash.

Then if other banks fail, the treasury would have to simply print more money to honor insured cash on those accounts. The result of that would be the dollar would crash and inflation would take off. Hoping none of this happens, but who the fuck knows now.

exactly

what I said in more detail

sweetredhead · 09-17-2008, 10:40 AM

Quote:

Originally Posted by wiggitywack

I thought I heard the other day the FDIC has only $50 billion on hand.
One or 2 big depost banks like Washington Mutual goes down, they could be out of cash.

Then if other banks fail, the treasury would have to simply print more money to honor insured cash on those accounts. The result of that would be the dollar would crash and inflation would take off. Hoping none of this happens, but who the fuck knows now.

See that's what i'm hearing. They throw around $billions like its monopoly money but the reality is there is a cap on what the fed can do and how much they can secure. It's getting scary hope your scenario doesn't come to fruition.

xmas13 · 09-17-2008, 10:42 AM

It's electronic money. You can't run out of electronic money.

sweetredhead · 09-17-2008, 10:50 AM

LOL thats funny, But in reality that's what everyone thinks it is, just go to the ATM and there will be money there.

IllTestYourGirls · 09-17-2008, 11:04 AM

If the FDIC runs out of money you will have a lot more to worry about than if you can get toilet paper out of the bank

FreeHugeMovies · 09-17-2008, 11:15 AM

No it can't. Congress just has to re-supply the threshold

tigermtb · 09-17-2008, 11:22 AM

The Federal Reserve will just print more money, that's all they ever do... that's why the US Dollar is hurting against other currencies. The Reserve prints $1Trillion per year in new money.

dready · 09-17-2008, 12:29 PM

Print more, inflation goes up, everybody wins.... err....

09-17-2008, 10:22 AM	#1
sweetredhead Confirmed User Join Date: Jun 2008 Location: New York Posts: 443	Can the Governments FDIC run out of money? So I am watching CNBC while i'm working and Smart Lunch is having a whole debate about can the FDIC run out of money. I feel the public has put so much trust in the banking world and most didn't realize that this insurance only covers per depository not for each acct you have. This is fucked if you have over $100,000 between accts you are only protected up to the $100,000, now the SPIC has higher limits in the brokerage world. But with all these firms going out of business and now the gov't is bailing AIG out of their mess. The question remains: Can the Governments FDIC/SPIC program run out of money? __________________ Brooke [email protected]

09-17-2008, 10:37 AM	#2
kenny Confirmed User Industry Role: Join Date: Mar 2002 Posts: 7,245	yes. but if that ever happens they'll probably just use the FED to inject capitol into it. __________________ 7

09-17-2008, 10:42 AM	#6
xmas13 Confirmed User Join Date: Dec 2004 Location: GFY Posts: 5,176	It's electronic money. You can't run out of electronic money. __________________ ICQ 557504926

09-17-2008, 10:50 AM	#7
sweetredhead Confirmed User Join Date: Jun 2008 Location: New York Posts: 443	LOL thats funny, But in reality that's what everyone thinks it is, just go to the ATM and there will be money there. __________________ Brooke [email protected]

09-17-2008, 11:04 AM	#8
IllTestYourGirls Ah My Balls Industry Role: Join Date: Feb 2007 Location: Under the gold leaf ICQ 388-454-421 Posts: 14,311	If the FDIC runs out of money you will have a lot more to worry about than if you can get toilet paper out of the bank __________________

09-17-2008, 10:37 AM	#3
wiggitywack Confirmed User Industry Role: Join Date: Mar 2004 Posts: 561	I thought I heard the other day the FDIC has only $50 billion on hand. One or 2 big depost banks like Washington Mutual goes down, they could be out of cash. Then if other banks fail, the treasury would have to simply print more money to honor insured cash on those accounts. The result of that would be the dollar would crash and inflation would take off. Hoping none of this happens, but who the fuck knows now.

09-17-2008, 11:15 AM	#9
FreeHugeMovies Too lazy to set a custom title Join Date: Dec 2001 Location: Charlotte, NC Posts: 14,137	No it can't. Congress just has to re-supply the threshold

09-17-2008, 11:22 AM	#10
tigermtb Confirmed User Join Date: Nov 2003 Location: Canada Posts: 1,062	The Federal Reserve will just print more money, that's all they ever do... that's why the US Dollar is hurting against other currencies. The Reserve prints $1Trillion per year in new money. __________________ Jay \| JuicyAds Founder Businessman of the Year [YNOT Awards 2013] The most awarded adult advertising network with 25+ XBIZ, GFY, and YNOT Awards.

09-17-2008, 12:29 PM	#11
dready Confirmed User Industry Role: Join Date: Oct 2002 Location: Toronto, ON Posts: 5,247	Print more, inflation goes up, everybody wins.... err.... __________________ ICQ: 91139591