FDIC to Receive Massive Funding in Preparation for MAJOR Bank Collapse

money.cnn.com...

I don't post many threads, but I find it interesting this story broke as the closing bell rang on Monday.

This is basically the government prepping for a huge bank failure. The FDIC insures the banks, and if the banks fail, people are going to want their money. Clearly the FDIC isn't prepared for the worst, and Washington is helping them out.

My question is...if TPTB want the banks to fail, and you to be broke and looking for a solution...why fund the FDIC?

It will be interesting if this bill passes, and even more interesting if it doesn't.

The whole world is collapsing. Everything is over leveraged. As you can see. The FDIC was supposed to protect your money in the bank, but now we see that is a failure also.

The New Deal policies continue to haunt us to this day. I don't know it doesn't matter if TPTB want the banks to fail or not they are going to fail. TPTB can try as they might, but you can't manipulate the market you can only manipulate the numbers, and the numbers will win every time.

I don't know what is going to happen all I know is either solution sucks.

I guess it's just scary to see the government printing a bunch more money and using to insure money, when really it's just making everything more worthless. It all just seems like an exercise in futility. I mean, if you've got to print more to protect what we already have....but printing more means it's worth less....why insure it.

I say just let it all fail. #^&@ it.

It's the beginning of the end!

Well, that already came along time ago, but this is for the government.

Bring it on!

I also say # it!

I'm surprised this hasn't gotten more attention.

The government almost seems gearing up for an inevitable major bank failure, when Obama's telling people to buy stocks and invest in a buyers market right now. Just the mixed signals is what really confuses me.

Originally posted by Hastobemoretolife
. As you can see. The FDIC was supposed to protect your money in the bank, but now we see that is a failure also.

here is the nitty-gritty.... the Fed/Treas decided to bail out the banks and all their toxic-assets/fraudulent debt-instruments disguised as 'bonds'...
rather than saving their 'ammo' ->for saving your savings accounts




~~~~~

? what happened to the other stuff
about the bailouts for the elites
and diddle for the backbone of the American economy,
the blue-collar & salaried workers who the elites and now the Congres prey upon as easy targets to shoulder the burdens of realigning the economy...



[edit on 8-3-2009 by St Udio]

Yeah, that bad. Obama's recent "stuffing the bed mattress" comment should get things moving this week. Wait for it, this will the scene by this time next year:



[edit on 8-3-2009 by pluckynoonez]

It amazes me that people feel more "comfortable" when their
bank is FDIC insured. It's backed by the bankrupt Goverment!!!!!

Originally posted by St Udio

Maybe they're starting to realize that they've already depleted everyone's nest egg, and if they yank our ability to keep the lights on and put food on the table, they'd probably be looking at full on revolution.

If the banks start falling like dominos, not only will the market plummet way faster than we've seen it ever, but FDIC isn't going to cover 70 million bank accounts. Time to grow my own food.

Why don't we take the money back from the fraudulent regulators who let this happen? This is all that this is, privatized wealth and nationalized debt. If we're going to nationalize debt, the only logically thing one can argue is to nationalize profit. This is why we shouldn't have compromised our quite laughable "capitalist" system into something worse. If Americans don't see profits from the government investment into the banks and whatever else, then this is slavery. But as long as it looks like capitalism, I'm sure that will satiate about 90% of you.

But it makes sense of course to make sure confidence is maintained in the FDIC. People would take there money out mighty swiftly if there was any eminent problem. One can only imagine what kind of credit crisis there'd be if there were no deposits in banks for loan creation.

[edit on 9-3-2009 by ghaleon12]

This thread has so much fear mongering that it almost looks like some might WANT this to happen. All this article is saying is that the government is insuring the FDIC to INSURE that bank runs DON'T happen. This isn't bad news and the government is far from bankrupt. So chill out.

Indeed Techsnow, FDIC is based on "Insurance" ...

FDIC stands for Federal Deposit Insurance Corporation.
There was a news story on last night about the FDIC and it showed them "taking over" a bank. At the time of the taping (sorry don't know exactly when that was but it was sometime this year) they stated that they had to take over 25 banks last year. And so far this year they have already had to take over 16 banks. So this isn't something new. Banks ARE failing, they just happen to be the smaller family owned banks. (go figure)

When asked if the tax payers "paid" for this the lady in the interview stated "No" .. it was insurance paid by the banks that covered these situations. However, she also stated that if it got much worse they would have to get money from the Fed Govt. (i.e. taxpayer money)



[edit on 9-3-2009 for spelling]

[edit on 9-3-2009 by cnichols]

reply to post by Techsnow


I get the same feeling you do Tech on alot of ATS threads. It seems lik ethere are many people here who are chomping at the bit for an all-out collapse of the financial system and even the government. Notwithstanding each's role in this debacle, I don't think the real thing is going to be nearly as much 'fun' as some suppose. Forget the massive numbers of innocent people, especially the very yound and old, who will die or be put perilously at-risk, but the widespread suffering, predation, disease and dislocation will be cataclysmic. It won't be some Hollywood MadMax adventure. If things do, in fact, collapse it will quickly become uglier than anyone here can remotely imagine.

Originally posted by jtma508
reply to post by Techsnow

 

Haha, it's funny how so many people come out of the woodwork and scream "FEAR MONGER!" Listen, maybe I embellished a little bit. The simple fact is the article is what it is, and they're expecting someone who has a lot of the people's money to go belly up pretty soon. It's not hard to see it, especially when Citi is selling for around a buck, down from over $50.

This is not fear-mongering. It's just news.

Between the combination of the Fed/FDIC/White House, they have the total power to destroy the worth of the dollar. Since the dollar isn't really anything now more than just a perception of worth, if the perception dies, so does the value.

Originally posted by jtma508
I get the same feeling you do Tech on alot of ATS threads. It seems lik ethere are many people here who are chomping at the bit for an all-out collapse of the financial system and even the government. Notwithstanding each's role in this debacle, I don't think the real thing is going to be nearly as much 'fun' as some suppose. Forget the massive numbers of innocent people, especially the very yound and old, who will die or be put perilously at-risk, but the widespread suffering, predation, disease and dislocation will be cataclysmic. It won't be some Hollywood MadMax adventure. If things do, in fact, collapse it will quickly become uglier than anyone here can remotely imagine.

I agree with this. In another economo-pocalypse thread a few weeks ago I posted about how the simple act of twisting my ankle had laid me low for several months and turned me into a hobbling, cane-leaning piece of what would quickly become roadkill in any kind of anarchic scenario. And if a simple twisted ankle can do that, think of all the hundreds of more serious problems your body could develop on the very first day of "the glorious revolution." People get used to seeing TV images of Jack Bauer or Batman jump off a fourth-story fire escape onto a car rooftop and sprint like an olympic athelete down an alley, but real life ain't like that. It won't seem like so much fun when your shattered femur is jutting up from a leg that looks like raw hamburger and there isn't an open emergency room or even a kind stranger to pass you a bandage and some gauze for miles around.

reply to post by Gando702


Heads up peep's the FDIC has issued upwards of 683 billion dollars since the beginning of this year. Bair already came out and said they are on the brink of running out of funds....this isn't over the next HUGE bank failure it's about the fact the FDIC is almost BROKE.....

Originally posted by WickettheRabbit
This is not fear-mongering. It's just news.

Between the combination of the Fed/FDIC/White House, they have the total power to destroy the worth of the dollar. Since the dollar isn't really anything now more than just a perception of worth, if the perception dies, so does the value.

When you really start thinking of it on that level, its crazy the way we're all just hanging by the thinnest of psychological threads, really.

As noted elsewhere, it seems like some part of many people wants the whole thing to collapse. Perhaps on some basic level people feel dehumanized and overwhelmed by the current system, I don't know. Perhaps something atavistic in the human spirit has a hankering for a simpler, more skull-thumpin world. I don't think it would be good for just about anybody if "the system" went down into raw anarchy, but all it would take would be a simple twist of psychology and a healthy double-dose of panic and paranoia. I think it was some British general who said that every society is allways just two missed meals away from total chaos.

Originally posted by Gando702
I'm surprised this hasn't gotten more attention.

The government almost seems gearing up for an inevitable major bank failure, when Obama's telling people to buy stocks and invest in a buyers market right now. Just the mixed signals is what really confuses me.

Obama is correct with what he said and here's why.

If the regular Joe starts investing now while it's affordable and the stock market does turn around (due to an influx of Joe investors) for the better there is the potential for increasing your original investment into the 1000% profit range and higher.

Now on the other side of the coin if everything fails you actually lost nothing because at that point paper money is worthless anyway.

So in all reality it's either make a bunch of money or no one has any money. So there is nothing to lose in this situation, that you wouldn't have lost already anyway.