If it is required by law to keep 125% funding against all of its insured deposits that sounds great. But what happens if the place the FDIC keeps its money goes belly up first?

My hope is that this fund is not in the same vault our social security lock box has been kept in.

With that question set aside for the moment and with stocks crumbling and other get rich quick investments going the way of 400 horsepower SUVs for hauling three soccer balls,, its kind of nice knowing that our CD's and yes, even our simple passbook savings plans are insured against loss. These savings vehicles didn't make one rich but they did help ensure funds for a rainy day.

Anyway, every economic forecast I look at says it is raining and it may soon storm. Hopefully the rainy day funds set aside by the FDIC will be enough to ensure that the rainy day funds I set aside will be there if I need them.

it was in the article. Don't forget your percentile point; there's a big diff between one and a quarter percent and your figure: 125%. The reason banks didn't like the FDIC is the other ways it is used to encourage speculation. The FDIC insures more than personal deposits, the article barely scratches the surface. The main use of the FDIC is to tap the FED money creation process to insure their stockholders against risk; risk such as investing in Bear Stearns and the international stock market.

Thanks. I missed it and my full knowledge of the American banking system, like most Americans, is limited. It would be nice if our school systems could include at least one half of a semester on our nations banking and monetary systems, at least enough to scratch the surface of the basics. As it is few schools bother to even teach kids how to write a check and balance the checkbook.

I did not know that any investments in the stockmarket were protected by the FDIC. In fact that goes counter to everything I had ever been told or read regarding stock market investments.

When you have a few minutes of spare posting time and things are slow perhaps you could provide more insights on the FDIC and its investment protections.

Wouldn't it make sense to teach us about finance and money? Those items are perfect high school level subjects. It is obviously just a big coincidence that no public school in the nation has ever taught these subjects; I'm sure it is just a big oversight, although there are grass root organizations in about 35 states attempting to change that; darn if it just continues to not be important enough for school districts to consider those subjects worthy of our knowledge. I guess learning how to work a condom is much more relevant.

The banks opposition to the introduction of the FDIC that the article mentioned; the opposition from decent banks to the FDIC when it was conceived. The main reason for that opposition was the fear that the big bankers would use it to cover their bets on the international market. There was a time when Americans understood better than to risk their money on banks that were heavy into stock market speculation. The FDIC was a tool to coax Americans Savings and Loans into the Wall Street market. It mostly worked and all our small banks have long been bought up by the Wall Street market. Remember, this was a federal deposit insurance corporation; not a local deposit ins. corp. What made it federal? It isn't public sector but nor is the Federal Reserve. The FDIC is a tool of Wall Street international bankers, it was spawned by the Federal Reserve money creation process and it was introduced as more leverage for the big banks against the small banks. Try to remember that the Federal bank was not renewed in 1837 and all our banking was returned to state level.... it was a long struggle by Wall Street fronts for European central bankers to regain control of our money and banking; which they did through the Federal Reserve system. The FDIC was icing on the cake to streamline their operations. Look at all those "national bank of" (insert your local city) type banks; what makes any of them "national"? These are banks tied to Wall Street's dominance through the anti-Constitution central banking system. They control the whole nation, our governments, and our public education.

Our Constitution gave us hard currency; gold and silver coin, and the equivalent in certificates. That's the money of the Republic. European central bankers brought over their bond currency; fiat paper money that illegal in America. No Constitutional Amendment exists changing our money to the Federal Reserve money. It is a criminal cabal, plain and simple. Hence, the need to keep Americans stupid as goats when it concerns money education.

So then technically, when these central banks demand paymant on our federal debt our government could say; "debt? What debt?" Our law says we must use gold and silver take your debt and leave.

This current administration has a strong track record of walking away from treaties, whats one more. Though I am sure the mess that would make would be bigger than the one we have.

'It would be nice if our school systems could include at least one half of a semester on our nations banking and monetary systems, at least enough to scratch the surface of the basics. As it is few schools bother to even teach kids how to write a check and balance the checkbook.'

the school never taught personal finance. that was taught by the parents in my day. it would be nice if the skrewels did give an understanding and exposed the wonders of our capitalist system.

if they knew more about how it works, the little simpletons wouldn't have this fascination with socialism and communism. but alas, simpletons like simple things.

Seems to me you have neglected to suggest that the little darlings also be taught about socialism and communism so they can make those judgements you seem to expect of them.

'Seems to me you have neglected to suggest that the little darlings also be taught about socialism and communism so they can make those judgements you seem to expect of them.'

they already get big doses of them. from the minute they walk into their fist kiddie class and force to hand over the supplies they bring to the collective. then they get 13 more years of socialism and guilt pushing brainwashing.

I think you will find its the better educated who seem more fascinated with the possibilities of social justice.

The working class simpletons as you call us simply believe in hard work and sacrifice will lead to a decent life and retirement. of course you right wing ding bats have gone out of your way to ensure that our hard work pays less and less and that a retirement with dignity is further from reach than its been in two generations.

So with all due respect, please find a lake and enjoy a jump.

they already get big doses of them. from the minute they walk into their fist kiddie class and force to hand over the supplies they bring to the collective. then they get 13 more years of socialism and guilt pushing brainwashing.
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Never, Never in my life have I ever heard or witnessed what you just described. Unless you can prove that, I have to call you a teller of things that simply are not true.

Yep, they could do that, or they could fold up the Federal Reserve altogether according to the legislation that drafted it, or they could shut it down for not being fully authorized to create money, or they could simply issue the money owed and pay off the debt, but they prefer to go on collecting income taxes as if that was ever the intent of the founding fathers.

Why does the government sponsor banking enterprises? Why doesn't HUD just fund home loans direct from the Treasury? Our government is drunken with corporate influence, it does nothing on its own, if there isn't a lobby pushing for a law, laws are not drafted. The founding fathers envisioned a government of leaders but it quickly dissipated into a government of bribe takers.

Anyway, there's no way to make a bigger mess than the one we have now. What we have now is a fiat paper currency in the advanced stages of meltdown. I love it when Paulson tells us that our banking is sound on account of the banks are well capitalized. Capitalized with what? With the dollar? The dollar is wilting. We have no real money in circulation, hence, the entire circulation is a seamless fragile entity that is collapsing. Nothing is safe. If the Treasury put real money into circulation, or at least an alternative currency, it could only help this huge mess. Notice how the market is cannibalizing; the Federal Reserve Note has no value to stabilize its position; the paper can not store value; hence there is nothing stopping this meltdown from rippling into all its base. It is a system of credit and debit of the momentary market; it is nothing more than accounting in practice; so as the trade turns over, the left and right side of the balance sheets dissolve each other and fold up the currency; the currency was only a momentary issue; it lasted as long as the debt, but now that the debt keeps turning over at the speed of light, the currency is dissolving as fast as it appears; the only thing that gave it longevity was the long term bonds ... as those fail, the speed of accounting dissipates the value of the currency. Hence, the credit "crunch" ... contracts are being torn up and with it the credit positions are lost. Since the currency was a momentary product of those contracts (loans) the currency itself is being crunched with the market turnover.

We don't have real money; we have fiat paper... as goes the market, so goes the paper. You are witnessing the meltdown of a paper driven market; trying to stabilize the banks with currency that is melting is futile. At least, in my opinion it would seem to be. But our Treasury Secretary says we are doing fine and dandy.... well, he also mentions that banks will continue to collapse as long as the foreclosure epidemic continues, I guess that's an asterisk in small print at the bottom of the speech.

NickD:

I have to call you a teller of things that simply are not true.

I could have told you that about him already.

'Never, Never in my life have I ever heard or witnessed what you just described.'

since you seem to spent all your time in moms basement, i'm not surprised. i'm betting there are many many things you haven't witnessed yet. except on the internet, stupid hollywood movies, or TV, of course.

that is the first thing the do to indoctrinate and brainwash the little brats. make them throw their supplies into a communal pile. someone can't have more than another because the stupid administrators deem it isn't 'fair' that some parents are responsible and others piss their money away on beer, lotto tickets and tattoos.

I was not educated on economics or money in high school, but I did take a few courses in college. Also, I worked a few years right across the street from the international elite Massachusetts Institute of Technology's Alfred P. Sloan Business School in Cambridge, Massachusetts. That Business School built a full scale model of the New York Stock Exchange, in great and accurate detail, to teach those Elite Students, both Foreign and Domestic, about the finer points of our American economic system. The only difference with the real trading floor, was that the information was 15 minute delayed. Those elitist kids can graduate and "go live" in a heartbeat. However, somehow I get the feeling, that the interests of Wall Street and Fleet Street Bankers and European and other Foreign Elites and American Elites do not coincide with American "Main Street" or with my own American Midwestern, Middle Class Values, Interests, Ideals or Traditions. <link>

man i remember the old days when the birchers were going nuts about the gold standard. are you a bircher?

the birchers ended up being right about all kinds of stuff. i remember i had this crazy neighbor who was a bircher when i was a young, teenaged lad. i had this communist hippie as a neighbor too.

one was saying that the war on poverty and great society programs would be the best thing to ever happen to this country. the bircher kept saying that the gubmint programs won't reduce any poverty but will do nothing but create a class of permanent recipients.

he was right and the liberal hippy was wrong.

the bicher also told me that if we integrated the public skrewels, they would turn to shit. he was right again.

he used to rail about the gold standard too.