Can the Governments FDIC run out of money?

[sweetredhead]

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]

yes.

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

[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.

[kenny]

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]

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]

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

[sweetredhead]

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]

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]

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

[tigermtb]

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]

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