Does FDIC insurance have enough liquidity to actually fund their promise

Hello ATS,

In the video below, the host presents some very interesting facts around the ability of the FDIC to actually insure your bank accounts. I hope you enjoy the video below.



I want to make certain points of this video very clear. The FDIC is an insurance agency, as we've seen in the past and are currently seeing in Florida, insurance agencies can fail. Most are massive and can withstand major events but the fact stands true, when the money is no longer there, they go insolvent.

The other thing I want to bring up, is to point out, later in the video, he does a good job of explaining how banks can "bail in". I've heard of this process and he didn't get everything right. If a bank takes your money to "bail in" they usually compensate you with bank notes or bank shares. This in fact is nonsensical to give a share holding in a bank that is already failing. But you know they are going to do it, if they have come this far, they need to do something to ease the tension.

I know a lot of you are thinking, this will unwind fast if a bank like Bank of America or Wells Fargo does this. This is why it will be small banks first. The FED will come in eventually and bail these banks out but they can't print 10 trillion dollars in a matter of weeks.

They want you to pull out cash now because it will lesson the burden on the bailouts. I don't think there are nefarious reasons behind it, I think the FED is done helping out these failing business models. It needs to be done at some point.

I wholeheartedly respect and am generally interested in your thoughts on this video and what you plan to do moving forward regarding this information.

The FDIC will probabably just fold and so will the government as it reorganizes like the government has done a few times before. Money will be recalled and they will give us just part of the money we had and everyone will be satisfied after being broke for a year...but since it happens to the majority of people, the value of the new money will be worth more if it follows history. Of course the rich will have their money diversified world wide, they will be able to do well.

Gold and silver prices usually drop like a rock too but you still have metal in hand to buy some stuff with....I would rather have seeds and fertilizer myself for security...and of course guns and bullets to protect ourselves with.

a reply to: rickymouse

You don't make me feel very comfortable saying FDIC will just fold.

People in upper midwest have the same exact feelings as you, you're with friends.

They effectively made robbing banks non profitable. Now they spawned a new wave of bank robbers that are safer and don't use guns, just keyboards and a little g2. Bless their banking piss poor little hearts.

Bank don't guarantee you they claim FDIC but they are willing to give you a 17% interest on a loan if your kid needs school supplies. lol who cashes that check if that person just says # you and moves on?

How much money does the FDIC have anyways?