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FDIC bankrupt?

September 17, 2014

FDIC sign at bank

http://consultingbyrpm.com/blog/2014/07/thank-goodness-the-government-insures-our-checking-accounts.html

Notice that in 2009 and 2010, the FDIC fund was negative, meaning it had to borrow money from the Treasury just to make whole the depositors of failed banks. As of 2013, FDIC has a fund of about $47 billion, with which it insures commercial deposits of more than $6 trillion–a coverage ratio of 0.79%.

So remind me why our money is safe in the commercial banks?

Think your money is safe in the bank?  I think not.

Recently, while at the bank, I took a picture of this sign advising that an account is “Backed by the full faith and credit of the United States Government.”  I laughed out loud when I read it.  So, the FDIC has had at least two years in the very near past where they had to borrow money to cover accounts.  The US is 17 trillion in debt and it’s rising quickly.  We’re running a deficit every year.  So, when your bank goes broke, it’s going to borrow money from the Feds, money that the Feds are going to have to borrow from someone else who already knows the US will never pay off the debt it has already got.

Feeling secure?

 

 

 

 

 

 

 

 

 

 

 

 

 

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