Obama doing a smart thing----

Discussion in 'Wall St. News' started by NY_HOOD, Sep 30, 2008.

  1. Arnie

    Arnie

    This is a good point. They should at least expand the limit for business acounts (payroll, accounts rec, ect...) to $1m. Individual accnts at 300-500K would be OK.
     
    #21     Sep 30, 2008
  2. Cutten

    Cutten

    FDIC has an effectively infinite budget, since Fed/Congress would print money rather than see the entire banking system become insolvent.

    The loss would essentially be taken via rapid inflation, rather than destruction of nominal dollar savings.
     
    #22     Sep 30, 2008
  3. your absolutely correct.

    the fdic is just a printing press.
     
    #23     Sep 30, 2008
  4. toc

    toc

    Obama is a politician nothing else, McCain is a lame old duck who has overstayed his invitation in politics. US is in trouble as firm leadership like Reagan or Clinton is missing and chaos and mess is spreading fast. :mad:
     
    #24     Sep 30, 2008
  5. Normally it would be an IDENTICAL process to JPM's and C's "bailout" of WM and WB . The Fed's role would be as guaranteer of liabilities.

    For a funding action beyond the cash resources of the FDIC it would take a Congressional vote. The FDIC is NOT a "backed in full faith" entity of the Treasury. If it was, guess what? CD's would trade at PARITY with Treasuries. They don't.
     
    #25     Sep 30, 2008
  6. piezoe

    piezoe

    No argument there.
     
    #26     Sep 30, 2008
  7. GTS

    GTS

    http://www.reuters.com/article/busi...Type=RSS&feedName=businessNews&rpc=23&sp=true

     
    #27     Sep 30, 2008
  8. This may impact small business owners looking for loans but right now small businesses arn't even close to the main problem. The main problem is banks lending to other banks.
     
    #28     Sep 30, 2008
  9. dis

    dis

    Upping the FDIC insurance limit to $250,000 is a great way to trigger a run on money market funds. :p
     
    #29     Sep 30, 2008
  10. I have my cash under 5 mattresses right now:D ...I don't trust these clowns.
     
    #30     Sep 30, 2008