Inflation

Kex

This is completely different from 2008/9. These takeovers are commercially viable, and paid for by the insurance premiums paid to the FDIC by all banks. They are not paid for with taxes. They are not paid for by the general public.

txcoastal1

Assets are worthless going into recession, and will likely plummet in value in the near future. Commercial real is on the verge of a major collapse, especially in NY and CA as business move out.

Kex

That’s certainly one point of view.

Gardenstater

Money grows on trees here so, if our government decides to cover all deposits for a particular failed bank (due to irresponsible management), it's all good. It's not like it will contribute to inflation or like it will effect the taxpayers in any way shape or form

Banks will pass on any expenses they have to the consumer 😉

Kex

Once again: the government covered nothing. Insurance premiums did. Does the government cover you in case of a claim against your auto insurance?

Keiko

Just keep printing more and more of that fiat dough to cover it.

GlennDog

sucks2beme wrote: »

Right now I don't even know what type of ac system
Installers are using. 410 is out. R454b is supposed to
be the current one, but it won't meet new restrictions in
California. It also shouldn't be used with a gas furnace
because it's flammable.

Phosgene gas has always been the byproduct of refrigerant-a-flame . . . . Put your cigarette out boys, as it’ll suck the oxygen right out of your lungs

txcoastal1

Government money is no different than big corp money....we are the investors. What suxks is when we invest and the higher ups still reap rewards

Kex

The FDIC is not government money.

VR3

The Deposit Insurance Fund (DIF) balance increased by $2.8 billion to $128.2 billion

https://www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/index.html





Please, by all means Kex, tell me more!

txcoastal1

Kex wrote: »

The FDIC is not government money.

READ ABOVE....I know that as stated above, but our banking fee's/interest/bank earnings are pooled and paid into the FDIC to cover these situations as a whole.....just like any other insurance.

Gardenstater

It is a Federal Deposit Insurance Corporation. If the government steps in and says that a particular bank that failed due to mismanagement is going to have all its depositors insured regardless of the amount it is interfering with the free market capitalist system ie. picking winners and losers. Why would large account holders deposit in the other banks that are not protected if they can be fully insured in those banks? But that is not the worst part of it. It is also contributing to inflation because if the other banks have to step up with their dues they will just pass their expenses on to the consumer.

GlennDog

I’m from the government ... and I’m here to help

aka to EFF you over

txcoastal1

What is annoying as I have been involved in construction of national account retail projects like Circuit City, Eckerds Drug Stores, etc , while these companies were collapsing. They were still building, CEO's/executives still collecting bonuses while they were draining market investment funds.

Many of these sites were not ASSETS, as they were leasing these properties and bleeding the corp cash.
I had to wait months/years to collect on these projects.

Keiko

Kex wrote: »

The FDIC is not government money.

Well, whoever's money it is, the average Americans are the one's still getting screwed.

#BOHICA

Thanks for playing!

nooshinjohn

Kex wrote: »

The FDIC is not government money.

You can learn more at @FDIC.gov

Dot gov… does that make them a part of the taxpayer funded federal government? I suppose it does!

xschop

The Federal Reserve is not in the U.S. Constitution.

nooshinjohn

xschop wrote: »

The Federal Reserve is not in the U.S. Constitution.

Three quarters of what the Fed does is not in there either...

Keiko

nooshinjohn wrote: »

xschop wrote: »

The Federal Reserve is not in the U.S. Constitution.

Three quarters of what the Fed does is not in there either...

Some info on the Fed. Research Jekyll Island and these families if you want to learn more about this illegal organization.

https://hannenabintuherland.com/usa/the-federal-reserve-cartel-the-eight-families-who-own-usa-dean-henderson-herlandreport/#:~:text=They are the Goldman Sachs, Rockefellers, Lehmans and,Paris; and the Israel Moses Seifs of Rome.

skipshot12

FDIC is a scam full of bull shift.
The cash is NOT THERE to pay you for your monies being held.
It’s based on investments & future speculation on rate of invested funds, not about having the actual cash at hand to protect the people’s money to actually pay.
Why do you think they limit withdrawals when there’s a scare……… not for fear of a panic, it’s because of a fear that the money isn’t actually there in case of a panic 😳
And the effect that will bring.

Then you have the next part of the scam, we don’t have the funds but we’re protected under bankruptcy laws.

We should go back to actual cash/barter and f the banks.
When the value of currency is based on ability to pay back debt it has no value.

sucks2beme

Not to worry. Digital dollars are on the way!

kevhed72

Gardenstater wrote: »

It is a Federal Deposit Insurance Corporation. If the government steps in and says that a particular bank that failed due to mismanagement is going to have all its depositors insured regardless of the amount it is interfering with the free market capitalist system ie. picking winners and losers. Why would large account holders deposit in the other banks that are not protected if they can be fully insured in those banks? But that is not the worst part of it. It is also contributing to inflation because if the other banks have to step up with their dues they will just pass their expenses on to the consumer.

Yes, my point exactly. If deposits are only covered by insurance up to 250k, why should the government step in and cover all deposits. I can't recall off hand if they did this with the first 2 bank failures or all 3...but whatever. It's like saying I am only going to insure half of whatever percentage of my house or car.

Kex

The FDIC is backed by the government, but the insurance fund comes from premiums paid by banks, not taxpayers.

It was created in 1933 because of the bank failures during The Great Depression, and is specifically designed to prevent that from happening again. It’s done a pretty good job so far.

If these banks had been left to fail, and depositors lost all of their money, or even most of it (beyond $250K) we’d be looking at an event that would suck so much air out of the economy it would cost vast sums of money in lost economic activity over at least five years.

For $125B in collected premiums, $8B per year, this is by far the cheapest option for all concerned.

Kex

xschop wrote: »

The Federal Reserve is not in the U.S. Constitution.

Neither is the Air Force or NASA. Would you like to eradicate those? 🤔

Gardenstater

Kex wrote: »

The FDIC is backed by the government, but the insurance fund comes from premiums paid by banks, not taxpayers.

It was created in 1933 because of the bank failures during The Great Depression, and is specifically designed to prevent that from happening again. It’s done a pretty good job so far.

If these banks had been left to fail, and depositors lost all of their money, or even most of it (beyond $250K) we’d be looking at an event that would suck so much air out of the economy it would cost vast sums of money in lost economic activity over at least five years.

For $125B in collected premiums, $8B per year, this is by far the cheapest option for all concerned.

All it has done is encouraged irresponsible behavior by incompetent banksters who feel like they have a backstop. It is interfering with the free market and causing inflation (banks pass on their expenses!). God forbid they decide to raise the bar or, even worse, to decide that all bank deposits regardless of amount, will be insured, but if we have a few more bank implosions (28 are at severe risk right now), I foresee that coming. They always make things worse.

And don't get me started on Chairman Powell. He simply will not step up and admit that the Fed doesn't have the power to correct the inflation they caused with their policies unless government spending is reined in severely.

Kex

So you would prefer The Great Depression 2.0? 😳

Do you also think that would cost LESS than the paltry $8B collected in premiums from banks annually? 🤔

Gardenstater

This will not be a depression. It will be stagflation.

pitdogg2

All it has done is encouraged irresponsible behavior by incompetent banksters who feel like they have a backstop.

^^^THIS^^^
How many of them ruin a bank and walk away with a grifted GOLDEN parachute????

aprazer402

Stagflation requires rising inflation with high unemployment. The latest U.S. national unemployment rate is 3.5%. That's considered low. Current unemployment rate here in Nebraska is 2.1%, the second lowest in the nation. We still have the rising prices (inflation) as everywhere else.

Gardenstater

Yeah but that unemployment number is a fallacy because they are not good jobs that have been created. There are lots of people now working multiple part time jobs to make ends meet and this has not been properly factored in. The devils in the details. Lots of big tech is commencing some pretty major layoffs. Labor participation rate continues to be low and is below pre-pandemic levels.