What if the FDIC runs out of money?

[touchring]

With the entire world economy slowing, home equity lines cancelled, unemployment soaring, mortgage interest climbing (see bankrate), real estate dropping, and election fever over in 6 mths, more banks are going to fold over the next 1 year.

I read that FDIC only has $53 billion in funds - which is like nothing in today's world - even less than Bill Gate's wealth. :eek:

[tsikRNA]

With the entire world economy slowing, home equity lines cancelled, unemployment soaring, mortgage interest climbing (see bankrate), real estate dropping, and election fever over in 6 mths, more banks are going to fold over the next 1 year.

I read that FDIC only has $53 billion in funds - which is like nothing in today's world - even less than Bill Gate's wealth. :eek:


You don't need funds when you own a printing press and indentured sheeple.

[touchring]

You don't need funds when you own a printing press and indentured sheeple.


I don't buy the printing press theory. It sounds like an easy solution, but the past year or so, each time America tries to print money, the oil producers will force up the oil of price. Want to print more? Pay $10 per gallon! :)

[c1ue]

Touchring,

And why would a central banker give a crap about $10/gallon gasoline when the alternative is all his buddies and future employers going out of business due to bank panics?

[phirang]

The GCC don't care: they just get to buy more american assets using fewer barrels of oil.

[tsikRNA]

The GCC don't care: they just get to buy more american assets using fewer barrels of oil.


They care because oil is priced in dollars. They get dollars on the sale. Their currencies are pegged to the dollar which causes the US to export inflation. It cause a lot of problems in their economy. That's why they want to move to other currencies for pricing oil. I'm pretty sure after the next BIG WAR, there will be a new system for pricing oil. It's also why you will see gold going up on the overnight Asian charts because they have to do something with all those dollars besides buy treasuries and worthless stock in GSE's.

[phirang]

They care because oil is priced in dollars. They get dollars on the sale. Their currencies are pegged to the dollar which causes the US to export inflation. It cause a lot of problems in their economy. That's why they want to move to other currencies for pricing oil. I'm pretty sure after the next BIG WAR, there will be a new system for pricing oil. It's also why you will see gold going up on the overnight Asian charts because they have to do something with all those dollars besides buy treasuries and worthless stock in GSE's.

I don't think Saudi is worried about their depcreciating dollars so long as their nuclear power plants get built...