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Wednesday, March 04, 2009

FDIC may become insolvent (Uh-oh....)

"Gloom, despair, and agony on me.
Deep dark depression, excessive misery."

The Federal Deposit Insurance Corporation - the government agency which makes sure that the money you keep in the bank will still be there if the firm goes bust - is running out of money for its fund and risks insolvency, FDIC Chairman Sheila Bair has told bank CEOs. A lot of banks have gone under in the past several months and its depleted the FDIC's coffers.

The FDIC is now looking to shore up the fund with new banking fees, and is projected to raise $27 billion.

Will that be enough at all to keep scenes from yesteryear like the one depicted above from happening again?

In my opinion: not likely.

5 comments:

Anonymous said...

The government won't let it happen. Except the government is bankrupt itself. So it will print more money. Which will lead to hyperinflation. And then the money that you had taken out of the bank and stuffed under your mattress will be worthless.

The dominoes are falling.

Anonymous said...

Not to fear! PrezO will just sign a bailout for the FDIC and everything will be fine.

Anonymous said...

If the paper will be worthless... what options do we have? Gold? Real estate? Golden real estate?

Chris Knight said...

"If the paper will be worthless... what options do we have? Gold? Real estate? Golden real estate?"

The way things are going lately, I've heard it suggested that lead and brass might be a sound investment.

Anonymous said...

At least if you own a piece of land you can grow a vegetable garden.

Ol' You-Know-Who