Bill Seeks to Let FDIC Borrow up to $500 Billion

Bill Seeks to Let FDIC Borrow up to $500 Billion

online.wsj.com

WASHINGTON -- Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.

The FDIC would be able to borrow as much as $500 billion until the end of 2010 if the FDIC, Fed, Treasury secretary and White House agree such money is warranted. The bill would allow it to borrow $100 billion absent that approval. Currently, its line of credit with the Treasury is $30 billion.

(visit the link for the full news article)

So to prevent a run on the banks we will just print up the money and loan it to the FDIC?

So now we are not only bailing out the banks, but the FDIC as well, boosting the $30 Billion credit limit to $500 Billion!

Where are they getting these figures from? Who decided that $500 Billion is enough? Well in this case it's our old friends from the Federal Reserve and the new Sec. of Treasury.

Better yet, how does this money get paid back? The FDIC charges fees to the banks who haven't closed down which then is passed to the consumer?

It seems that this measure to protect the savings of American Citizens is really just another tool by the Money Movers to devalue what little wealth there is left among the average Joe by further weakening of the dollar while at the same time collecting monumental amounts of interest on all this newly formed money that did not exist at this time last year.


online.wsj.com
(visit the link for the full news article)

Ah heck, another half Trillion, why not?

I like the part where it says that 'IF the Fed, FDIC, Treasury,.... think it's necessary'. Kinda like the missing 700 Billion was probably not going to be needed right? They'll be back for a few Trillion more.

And then there's this.

Derivative contracts total about three-quarters of a quadrillion dollars in "notional" amounts, according to the Bank for International Settlements. These contracts are tallied in notional values because no one really can say how much they are worth.

Try as we might to salvage the residential real estate market, it's at best worth $23 trillion in the U.S. We're struggling to save the stock market, but that's valued at less than $15 trillion. And we hope to keep the entire U.S. economy from collapsing, yet gross domestic product stands at $14.2 trillion.

www.marketwatch.com...

reply to post by DrZERO


This is not surprising... civilization itself is at stake at this point... The Government will do what a Governor does in an engine, compensate in an attempt to keep the whole machine alive and moving forward.

I don't fault anyone for doing this... it makes sense when the question is "How do I keep the USA from turning third world over night?"


I'm all for it...


But then again, I am now officially over 35 and cannot be trusted.

[edit on 6-3-2009 by HunkaHunka]

Have you ever noticed in stories like these that they never say WHERE they're borrowing from?

Well evidentley the PTB expect massive bank failures. Pulled my funds 2 weeks ago!

At the point they need to spend $500+ billion, then what is really the point of currency anymore? That would basically mean that a majority of Americans have lost all of their money.

Its just a PR stunt to make people feel more comfortable in putting money in banks, because now it is strongly backed. Its just fraud basically, because there is no major step passed this.

This wave of 2009 bank failures will likely do in the Federal Government. First $500 billion is not enough. Second, if it's not our $500 billion then we have to borrow it and this won't help, because that puts the Fed in charge of overwhelming amounts of private debt on top of the debt they incurred by borrowing for the FDIC in the first place.

Remember all those people that said that "At least we have the FDIC"?
We don't. We never did. And it was never going to work.

haha.
bill maher said last night that the FDIC is like the firetruck for the banks, and the firetruck is on FIRE !! haha.

its a good thing im broke otherwise i'd be nervous.

I'm bumping this thread because I believe it looks different in light of the recent news surrounding Chris Dodd and his involvement in the AIG bonus scandal.

Wow. A boost from $30 billion to $500 billion? It sounds like they're getting ready for a massive number of bank failures and are bolstering the system beforehand so that they can reimburse customers for their losses.

Of course, those FDIC funds will be worthless due to inflation, but whatever. They don't care.

Well with the Credit Union and bank failures yesterday I guess we see why they need all this 'money'. At least they've got the printing presses warmed up now, 500 Billion shouldn't be too hard. Why don't they just shoot 'em a cool Trillion? We don't want them feeling left out of the Trillion Dollar Club after all.

This country is so screwed!