Who backs FDIC if they utilize their entire reserve balance.

Discussion in 'Economics' started by The Kin, Jul 16, 2008.

  1. I've heard the FDIC has a reserve balance of $50 billion. IndyMac was a big hit on for the FDIC, up to $8 billion. I bet the actual number will be higher. A few more bank failures and it's not inconceivable for FDIC to blow its $50 billion.

    I assume it falls back on the taxpayer to flip the overrun. Maybe the Fed will open the discount window to the FDIC...

    Government revenues for 08 are getting slaughtered, 09 will probably be a lot worse. Yet we're spending more than ever. I hope someone at the CBO is smart enough and honesty enough to tell the congess that the status-quo is unsustainable.
     
  2. m22au

    m22au

    Your post summarises the thesis for selling US Dollars and buying gold