When will the FDIC go broke?

Question

if this recession goes on any longer i'm not sure the FDIC can keep up.

Answer 1

FDIC has only $53 billion in reserves and it insures $4.28 trillion in bank deposits.  For IndyMac FDIC will have to pay about $8 billion.  For the other two banks FDIC took over last Friday, FDIC will have to pay about $870 million.  That leaves FDIC with about $44 billion in reserves for $4 trillion in bank deposits.  Which doesn't leave much room for more bank failures.

The US government may try to make US taxpayers pay for the mismanagement of private banks by their owners.  But if the tax bill becomes too large.  Then many taxpayers will probably revolt and elect representatives for Congress and the Senate who will refuse to use taxpayer money in this way.

Answer 2

There have been many recessions in the past 75 years since the FDIC has been established.  None of them have sank the FDIC, so I'm not sure what you see in this one that will sink it???

Recessions & bad economies come, and they go.  The folks that set up the FDIC quite probably anticipated this & planned accordingly.  

As long as the government has a printing press, I guarantee you the FDIC can keep up.

Answer 3

Recession? What recession? You have no clue. The New York Times and the rest of the liberal press has you believing we're in a recession when we're not. A recession is defined as at least two consecutive quarters of negative economic growth. So far we've had exactly none, zero. You want to see a recession, go back to the presidency of Jimmy Carter. Back then we had 12% inflation, 9% unemployment, 18% mortgages and huge negative growth numbers. Today we have 3-4% inflation, 5.5% unemployment, 6% mortgages and economic growth (even if it is small). Gas may be expensive now, but back in the late 70's you couldn't even buy it. All of that was due to excessive taxes, excessive regulations on companies and especially oil companies. All the things Barack Obama promises to bring back. Then you can complain about a real recession like the kind Jimmy Carter gave us and Ronald Reagan saved us from.

As to the FDIC going broke, that can't happen unless the US government goes broke. Something Obama is going to try to do with excessive taxes and huge government spending.

Answer 4

umm, never?

if they run out of cash, they can either raise rates on banks or just print more money.

your deposits are fine.

by the way, we're not in a recession, anyway.  GDP growth is actually pretty comparable to last year.

and you can keep your job until your boss finds out that you don't know the basic definition of a recession, and fully expect to get canned.

Answer 5

The FDIC will never go broke as long as there are hard-working Americans to tax.

Answer 6

This will not happen. The FDIC's funds are not absolute, they are a scale of relativity based on current needs and the money supply. If they need more, it will be printed and provided.  This does not mean there would not be negative effects of more bank failures on inflation, but it will not be large scale, or anything close to the Depression.  Look at the objective number of institutions involved, and not at what the irresponsible media continue to irresponsibly force-feed to everyone.  

An analagous example:  15 of the success measures agreed upon for the Iraq war have been met, and we are winning.  The press is not reporting this for two reasons.  1.  They don't want to admit their gloom and doom panic reports are wrong.  2.  They are busy focusing on telling you the stock market is in recession. By objective definition, it is not.  By Warren Buffett's pronouncement, we are in one.  I respect Warren Buffett.  I also respect objectivity.  I know Warren likes to buy as well as he can in a down cycle, and he benefits more than the rest of us can because of his massive capital.  I respect objectivity most.

Answer 7

It wont ever go bankrupt or broke.

Answer 8

AFTER Anther 4-6 banks closed like INDY BANK SIZE, the FDIC will be out of cash .

INDY BANK COST THE FDIC OVER 21% OF TOTAL LIQUIDITY.

IN THIS CASE USA GOVERMENT WILL PRINT MORE PAPER DOLLARS, AND THE CURRNCY VALUE OF DOLLAR WILL  KEEP GO DOWN, AND THE COST OF FOOD,OIL,...ETC WILLGO HIGHER.

THIS WILL TURN UGLY ,AND VERY BAD TO EVERY ONE .