Has Obama changed Washington or has Washington Changed Obame?

[tokenuser]

Well done. You can quote links.

Now, as I asked before, do you UNDERSTAND what the FDIC covers?
Taking a step back, do you understand how insurance works?

Link away ...

[zeo]

Originally Posted by tokenuser

Well done. You can quote links.

Now, as I asked before, do you UNDERSTAND what the FDIC covers?
Taking a step back, do you understand how insurance works?

Link away ...

Yes, and if you read those links you'll know it's more complicated than just insurance!

[tokenuser]

I understand its more than insurance, but without an understanding of what insurance and assurance is, I am afraid those links are meaningless. I strongly suggest you go back to basics before tackling an understanding of the FDIC.

Oh yeah - the seeking alpha article you quoted. Might like to look up the background of the author. He resigned his position at Commerce Banc to avoid prosecution, and is precisely why the FDIC is there (along with the SEC and FTC).

Obligatory links of equally useful stuff ...

www.cheese.com
www.bread.com
www.milk.com
www.eggs.com
www.orangejuice.com

All equally relevant to the discussion at hand as the FDIC.

[zeo]

Sorry but you're apparently just not bothering to think how the whole system works together and assuming it's just as FDIC is officially described. So no, your links are not equivalent and are just a blatant insult to our intelligence.

Never mind, where do you think the money for the insurance really comes from? It's not
entirely how the FDIC officially describes it for one thing!

Sure, in theory the FDIC acts as a kind of insurance co-op among banks. They're charged assessments to keep the FDIC's coffers flush, and when one goes down, the customers deposits are replenished from this money with the ability to borrow from the treasury when funds are critical.

But that's during normal times, never mind that the premiums are basically a tax that is usually channeled through the treasury. Taking money indirectly from us via the banks.

But regardless, in abnormal times like now; when we're dealing with a wave of systemic bank and business failures. It's no longer really an insurance organization at all anymore. But instead becomes just the conduit for taxpayer cash to make depositors whole and that links it right up with TARP, the Stimulus Bill, and everything else the government is doing to raise spending and trying to make the numbers look better than they really are.

For example, Banks Must Pay Higher Insurance Premiums to FDIC due to how the Government used the present financial fears to Increase FDIC Insurance to $250K (something that really only helps the top 1.6%). So, since the banks will have to pay more in insurance premiums, this will, in turn, reduce their already eroded profits. This means that banks will have to increase what they charge in interest rates or fees and/or reduce the amount they pay depositors to pay for the increased insurance cost and that means more end cost to consumers, namely us!

While this is compounded by any other regulations the government imposes, forcing banks to impose charges in other ways. Already for example, we have to pay up to $5 at ATM's, balance transfers are harder to get, cash advances are being more limited, etc.

Meanwhile the debt is getting bigger and the interest we have to pay on it is rising as well. While more banks and businesses fail and jobless rate still has a net loss that is increasing.

Really, the FDIC is about about as untouched and as close to what it was originally intended as say Social Security when in reality the government has been manipulating the books for decades.

By now most of us should know that the government has manipulated everything they could over the years and we should stop believing everything they tell us anymore when they've clearly mismanaged the budget. Especially when many of the things the government does is as bad as ponzi schemes!

So really, read the links and start thinking how everything ultimately effects us. Just because it doesn't seem to be a direct effect doesn't mean it isn't indirectly effecting you!

[willammt]

Ok just decided to toss out a little video that some might find a tad funny. It might even answer the way people perceive things. http://www.youtube.com/watch?v=K4vv7...eature=related

Willam

[bobv13]

That was funny