Saturday, March 07, 2009
FDIC warns US bank deposit insurance fund could tank
The warnings should come as no big shock without the investment revenues the funds alloted for the insurance will dry up. The FDIC plans to impose emergency fees on lenders to try to quickly raise the funds set aside. The FDIC is essential to investors to ensure confidence of the safety of their investments. The more stories and things like this that I see the signs seem more and more to be pointing toward another great depression and the government seems to have learned nothing from history. 
http://news.yahoo.com/s/afp/20090305/bs_afp/financeeconomyusbankinggovernment;_ylt=Al4Ho2ni7OBkS388N4.TczqyBhIF
http://news.yahoo.com/s/afp/20090305/bs_afp/financeeconomyusbankinggovernment;_ylt=Al4Ho2ni7OBkS388N4.TczqyBhIF
# posted by adam @ 10:21 AM 
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I agree that this is a mirror of another great depression. The Banks insurance fund is most likely going to go broke this year. The FDIC plans to raise fees on the banks but they have trouble paying the initial fee. The whole thing is just asking for banks to go under. The FDIC are getting an emergency fund to help support the banks but the emergency fun will only last so long and after that they will need more help. The whole issue gives me no confidence in the situation.
It is scary to think that the FDIC may go broke. The only reason I trust banks is because they are backed by the FDIC. People getting scared and taking their money out of the banks does no good- so everyone should just sit tight.
I always wondered what would happen if a bank needed the FDIC. I always figured that if the time came for banks to use the FDIC, we would be so far up that proverbial creek that the FDIC would not really help much. It sounds like it is just there to make people "feel" secure about their banks.
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