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FDIC could only pay out about $500 on an insured $250,000 deposit.. if that!

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posted on Oct, 14 2013 @ 01:04 AM
couldnt find any new articles whatsoever about FDIC deposits.. its almost as if it has just become a total sham and they would actually never payout anything in the eventual bank runs & collapse.. not that those bills would be worth anything but paper to wipe your butt!
Hole in the FDIC
From almost $60 billion last fall, the FDIC's reserves have been drawn down to only about $10 billion today (after set-asides), a 16-year low. A quick look at the FDIC's own data shows us how inadequate those reserves are compared to the deposits they are now insuring. The FDIC only has about two-tenths of one cent for every dollar of assets it covers. Look at this chart from my friends at Casey Research.

Here is the latest graph I could find.. again it stops at 2009 - almost like thats around when FDIC hit rockbottom and raised the insured amount from 100,000 to 250,000 get more deposits from the majority of ppl out there who buy into this false sense of security or have been skeptical about off-shore banking.

Anyways, assuming the FDIC reserves havent changed since, we are looking at a change from a $100,000 insured deposit paying out around only $200, to the permanent maximum insured amount of 250,000 paying out around only

.2 * .01 = .002
.002 * 100,000 = $100 payout
on $100,000 insured deposit

.002 * 250,000 = $500 payout
on $250,000 insured deposit

ps: i looked for a video explaining how fdic is a ponzi scheme, and couldnt find any, not even 1 on YT made within the past 12 mos.. guess its not a ponzi schime then =D

posted on Oct, 14 2013 @ 02:39 AM
FDIC was created during the Great Depression by the Roosevelt administration to restore public confidence in the Banking system.

This Idea was if to build confidence that the government would insure you bank account up to $100,000 U.S. Dollars. Most people didn't have anywhere near that kind of money but the FDIC did restore confidence in the Banks.

posted on Oct, 14 2013 @ 09:24 AM
reply to post by gardener

I don't follow your math. Say the FDIC has $10 billion in reserves. That means a $250,000 account, if wiped out during a bank failure, will receive $250,000 dollars, and so will the next 39,999 $250,000 accounts at that bank. Most people don't keep $250,000 in insurable bank accounts, but the point remains that there are enough reserves to cover many thousands of customers up to the FDIC limit.

There are relatively few banks with insurable deposits over $10 billion, but let's say a really big bank fails, or more than the usual number of small banks. The FDIC can raise more money by assessing fees or raising rates. You can do that when you're the monopoly supplier of a government-mandated product. They can also borrow from the Treasury.

The fund balance is actually about $33 billion, not ten. I was just going with your original number for illustration. And yes, the reserve ratio did go negative for in 2009 and 2010, but the world didn't end, so the line graph isn't really that scary in retrospect. They still paid out every cent that was owed.
edit on 14-10-2013 by FurvusRexCaeli because: (no reason given)


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