Oil prices shouldn't rise every Friday afternoon, or the day before Memorial Day Weekend, or the day before Fourth of July...but they do.

Fish on...

Todd

Different because the FDIC is insurance on deposits only. And up to $100K at the time. No mortgages, etc. Talk about massive losses.

FDIC insurance is currently $250,000 per relationship. Proper structuring of account ownership allows a couple with two or three kids to easily safeguard over $1 million. I bet I could get that up over $2MM.

FDIC insurance on non interest bearing checking accounts and savings accounts earning less than 0.50% is unlimited, provided that they are business accounts.

Salmonella-

I am a registered Republican. I have no love for "lefty pliticians" or the GOP. I voted for Ron Paul.

I enjoy Todd's sarcasm because it is on the mark - the government is not coming to take our guns. If the government wants to, it will take us out from the air or with armor or with artillery. Our guns will not protect us from the military, nor will our guns protect us from legislation. That last one is the real killer.

That's why I said "at the time".

Here is just the foreign activity (insured by the FDIC add 000 down from 2008):

Deposits, total 1,416,065,967
Individuals, partnerships & corporations 1,087,201,228
Commercial banks & other depository Institutions in the U.S.
88,820,199
Banks in foreign countries 163,498,001
Foreign governments and official institutions 75,710,425
U.S. government, states, and political subdivisions 836,117

We have seen a huge influx of funds from large banks. Between March 1st and April 30th, 44 business days, we saw a $45MM increase in deposits, or just over $1MM per day. (Our bank is about $650MM in size, so that is a huge increase)

Stupid people lose money due to not having FDIC insurance. Structuring accounts, pledging cash as security for an unused line, or using a CD program like CDARS will allow 99% of people to get full FDIC protection.

Banks right now are paying an increased assessment to build the fund back up.

Or, you can hide your head in the sand and see how that goes......

So what is your point? Are you making the argument that simply bailing out the FDIC would have resolved the banking crisis, like Hankster claims, or are you just blowing smoke and informing us all that you work at a bank? My argument is the issue was much greater than individual deposits and covering foreign deposits alone would have been almost $2 trillion anyway. Not to mention all of that covered foreign money going bye bye as countries pull out. Mom and pop wouldn't have to worry about their savings because the US dollar would have been all but worthless anyway.

The FDIC could NEVER have covered all deposits. How meaningful is FDIC "coverage" if you can't get it when you want it?

Mike,

I'm not worried about anyone taking my weapons either. In the first place, I would venture to guess that 90% of law enforcement would all but ignore the directive, and second, the SCOTUS would never allow it.

My concern is that we are following in the [already failed] footsteps of other governments...socialist ones. It all sounds great, but it just doesn't work!

I'm 50, and will only be paying into the sytem for another 15 yrs or so (or until I croak, whichever is sooner). Problem is our kids, and grand kids are going to be saddled with the BILLS for what is being spent now for their entire working lives, and when it all collapses (and it will) we will be just that much worse off.

That's what I'm afraid of.

True but the robbing Peter to pay Paul is pure Reaganomics 101. You'll be lucky to collect on that SS. At some point I'm going to be tempted to withdrawal all of my 401K moneys and pay at todays tax rate because, even with the penalty, tomorrows tax rate is going to be ugly.

Roll it into an IRA, then convert to a ROTH. You'll pay the taxes, but avoid the penalty. If you can't do that now because of income restrictions, you should be able to next year, when the rules change.

Wow. You think WE will actually get to retire? The North Koreans will take us all out before that happens...

Ever stop to consider how many of the industrailized nations in the world are more socialist than not, in comparison to how many subscribe to an economic system that mirrors ours?

DISCLAIMER: Not to be construed as an endorsement of socialism, just something to think about. Although I admit I would be perfectly content with a more socialized system here.

Well Hank... since the European democracies are FAR more socialized than we are... and the "Trickle-down", pseudo-fascist, corporate oligopoly, 'favor the rich at the expense of the middle-class' system that's been in place here for the last 30 years has been an abject FAILURE and has been patently rejected by the American electorate... perhaps a hybrid that employs the BEST of both systems would be in our best interest?

Something else to consider...

Yeah, 4Salt, but that's the American Way. Hasn't always been that way, but it sure is now.

Sarcasm? Sure...would you rather hear my actual feelings about the childlike fear-mongering around gun grabbing that you "tough gun guys" are always being peddled by the NRA, and eating up like candy?

No, you wouldn't...so take the sarcasm and get over it.

Fish on...

Todd

FDIC won't fail. Period. The healthy banks will cover the losses of those who are not, unfortunately, and shareholder returns will suffer.

When the Bank of Clark County went down a few months back, Washington's own little version of FDIC worked as it should. All uninsured public deposits were covered by other Washington banks within the pool. This did not include credit unions or S&L's, just banks.

We wrote a check for $80,000. B of A wrote a check for $4MM.

The same essential chain of events will occur when/if any bank large enough to threaten FDIC's reserves fails. I think we are at 35, or 37 year to date on bank failures. Banks will pay a special assessement based upon a percentage of their assets, and the fund will be replenished.

You can wring your hands all you want. The FDIC won't fail. Yes, the dollar is going to be taking a hit. Yes, some stupid people will lose money. How much of a hit is only conjecture at this point. You don't know any more than I do at this point. The FDIC is a non-issue compared to the other issues out there.

Some people I know are diversifying their cash into metals, and some foreign currency as a hedge. Not a bad idea in my opinion.

Anyway, I'm not a teller, I don't help folks balance their checkbooks, but if you need a few million bucks, are interested in a particitaion or syndication deal, need to buy or sell a business, or finance a trucking fleet, I'm your man.

Interesting time to be a banker.

Hankster!

I heard this on the radio this morning and instantly thought of you, in a good way, so enjoy!

fixed

..and if the entire financial system fails, you'll be wishing you had a gun.

If, as Hankster has proposed, we had taken the approach of no TARP and instead let the chips fall where they may as FDIC funds rapidly dwindled there would be an increasing rate of "run on the banks". it would be a snowball effect. We'd be forced to bail out the FDIC or get used to being a third world country. Small banks would be toast. Nobody in their right mind is going to keep large sums in a small bank with the FDIC on the verge of running out of deposit insurance.