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View Diary: BREAKING: Cyprus Deal Announced (53 comments)

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  •  If everyone was clear upfront about the (4+ / 0-)
    Recommended by:
    AoT, ferg, burlydee, Cassandra Waites

    insurance limits, this is OK and the way it should be.

    I am amazed at how many people in this country don't understand how deposit insurance works.  Many people think "it's in a bank, I can't lose it."  Not true.  you need to know what is insured and what is not.

    And how insures it?  A FEDERAL program, put in place by DEMOCRATS in order to save capitalism from itself.
     

    •  Not enough (0+ / 0-)

      FDIC doesn't hold sufficient funds to insure losses on a too-big-to-fail bank.  FDIC only has $50 B.  Bank of America, for instance, has about $1.5 T in deposits.  If it failed, the FDIC funds would be exhausted and US taxpayers would have to pick up the rest of the tab.

      •  Of course, the question is why that's the case (2+ / 0-)
        Recommended by:
        Cliss, bluegrass50

        And the answer is because the banks convinced the government that they should stop paying the FDIC tax because 50 million was enough.

        And really, the government can afford that bailout. At least the money is going to people who are going to spend it. Shore up the credit unions for small depositors. It wouldn't be the end of the world. Only the market would take a hit. No one should be investing in the market for retirement at this point.

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