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Nickelless
Administrator
USA
5580 Posts |
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Copper Catcher
Administrator
USA
2092 Posts |
Posted - 10/26/2009 : 20:03:49
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F.D.I.C. Says Bank Failures Will Cost $100 Billion
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If they are not in trouble why are they asking banks to pre pay or pay more or even have as a consideration i.e. tapping its $500 billion emergency credit line with the Treasury Department or borrowing from large private banks.
The FDIC is flat broke just like the rest of the government!
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 10/27/2009 : 01:18:44
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"Comptroller of the Currency John Dugan, who also spoke to the ABA, warned that the pace of bank failures may have slowed but isn't yet close to ending. "We've got a ways to go to work through these failures," he said."
So the bank failures are not costing the taxpayer anything (yet). They are going to make the remaining banks pay through increased fees = banks are going to make the customers pay through increased fees. Bank customers are the taxpayers. What is the difference? The overpaid bank execs should pay for their mismanagement... like that will ever happen.
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“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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Dalsuh
Penny Hoarding Member
USA
757 Posts |
Posted - 10/27/2009 : 01:21:51
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| What do bank failures mean for me? Should I take more money out of my account? Please share what you guys are doing. Thanks. |
PACK THE FORUM EVERY MONDAY NIGHT
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Ponce
Penny Hoarding Member
Cuba
630 Posts |
Posted - 10/27/2009 : 01:26:10
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| If you had $100,00 in the bank five years ago and you were to take it out today it would be worth only about $65,000-$70,000. |
"If you don't hold it, you don't own it"...Ponce |
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Copper Catcher
Administrator
USA
2092 Posts |
Posted - 10/27/2009 : 10:41:25
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While this is a bit off topic....Everyone's situation is different. We have a mixture of both young and old on this discussion board.
Determining what you should do with money you have in the bank should be based on what your overall financial health is in general. I think it would be hard to argue against the advise of saying that you should in some way diversify your assets. i.e. Have some of your assets in hard assets you can hold. Platinum, Gold, Silver and Copper.
While this is counter culture...I try to live by a principle that was passed on to me by my grandfather.
He said: If you cannot afford to pay cash for it you probably really don't need it or "he implied" you don't really deserve it.
Step back and think for a moment if everyone lived by this simple "rule"!
Well obviously people would probably drive used cars versus playing the game of being upside down in a loan and owing more than what the car is worth. Also, I would suspect that people would rent more versus trying to buy a house they can't afford.
In short, people would live within their means and most people would have less.
It is interesting when you hear people talk about the: "American Dream" as if dreams were reality and that the government was somehow responsible to make sure you have what you think you deserve. |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
 Posted - 10/27/2009 : 11:29:35
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sheila bar is a dunce but she's technically correct so far . . . so far the FDIC actions have been self funded. However, only 100 of an expected 1,000 banks have failed so far. Also, a lot of the bailouts involve FDIC guarantees of failed bank assets, and its only a matter of time before the FDIC has to pay the piper on those. Zero hedge had an internal FDIC document on its site indicating that the fund was insolvent at Sept. 30. The just floated a rule requiring banks to pre-pay 3 years of insurance premiums. Bair is trying to kick that can down the road with all of her might. That 3 years worth of premiums will be gone will before 3 years. At that point, she'll go hat in hand to Treasury (i.e. taxpayers).
as for what to do, definitely do not have more than 100,000 in any single account. make sure you have adequate resources if there is a bank holiday and they turn off the atm's for a month or limit withdrawals to say $250 per week. I think the whole dollar/fdic thing is a game of musical chairs and eventually someone is going to be left out. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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FDIC frustrated with perception of bank failures
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