Why is FDIC collapsing?

Question

They just requested a bail out from the Treasury Department.

Answer 1

Don't exactly know, but we are in SOOO much trouble.

Answer 2

This is directly tied to the sub-prime mortgage problem.  Too many people agreed to adjustable loans.  Once those loans reset for a higher rate resulting in the house being worth less than it was and monthly payments rising many people defaulted on their loans.  Fannie Mae and Freddie Mac are the big culprits in this meltdown.  The banks were making money on the paperwork giving loans to irresponsible people.

Answer 3

and you thought your money is safe.