Thursday, October 2, 2008

The FDIC Assbets with Your Money

There is nothing in there people.


Assbet: When a person engaged in a 'hood dice game places bets with money he or she doesn't have...if discovered, this usually results in a beating.

As you already know, the Senate passed a modified version of the "rescue plan" (the new terminology that's been introduced after the public got outraged about the bailout) that included a raise in the deposit amount the FDIC would insure from $100,000 to $250,000.

Sounds great right? If you're balling like that, you can consolidate a few accounts and have more of your money protected against a bank failure, banks have a little more money on hand, everybody's happy.

But Eric Dash of the New York Times reported something you may not know about the FDIC.

Dash wrote that the FDIC only has $45.2 billion in its fund...to insure $4.5 TRILLION in deposits. Now i'm not that good at math, but even I know that doesn't remotely add up.

Why is this fund so small? According to Dash, the FDIC decided to waive the insurance premiums for banks between 1996 and 2006 when the economy was booming.

Apparently the people who are paid to be paranoid said "Eh, nothing's going to happen, money is raining from the sky like manna, you don't have to pay for insurance."

Now the FDIC plans to try to collect these premiums to generate the money it would need to cover the $150,000 increase if it is passed....from banks that are praying from the "rescue plan" to survive.

Somebody is in line for a beating.

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