Comments on: FDIC to Seek Premium Prepayments

By: Credit Card Chaser

Credit Card Chaser — Wed, 30 Sep 2009 05:19:36 +0000

The unique thing about the FDIC and really the government as a whole for that matter is that as much as we can speculate about this or about that the FDIC has one unique advantage over any other type of non governmental entity in that if their projections are off then they have the luxury of simply tapping all of us for more money in the form of increased taxes or decreased purchasing power because of their inflation producing money printing obsession.

By: Jim

Jim — Tue, 29 Sep 2009 17:59:09 +0000

My $.02 : I think the whole thing will blow over within 1-2 years. They already propped up almost all the major banks with the bailout. Those banks won’t fail. More smaller banks will fail but nothing too massive and the actual losses to the FDIC won’t be that big. A $30B increase in the reserve should be enough to last them through.

By: Nickel

Nickel — Tue, 29 Sep 2009 17:06:57 +0000

Matt: They actually have a $500B line of credit with the Treasury, but have been reticent to tap it. Where that $500B would actually come from is another question entirely.

By: Matt Jabs

Matt Jabs — Tue, 29 Sep 2009 16:10:23 +0000

My thought is… they will just change the rules when 2010 – 2012 roll around and come up with the money some other way at that time. If we look to the past for guidance… that will most likely mean printing more money out of thin air or raising taxes on individuals and small businesses.