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I don't disagree with what you said (in fact I upvoted it because it's spot on), but this sort of makes FDIC insurance a sham, right? They're basically claiming
by bhb916 14y ago
I don't disagree with what you said (in fact I upvoted it because it's spot on), but this sort of makes FDIC insurance a sham, right? They're basically claiming they will insure your money in a bank until they need it -- then it's fair game. Even if they never do renege on their promise, we are (through taxation) subsidizing people to give their money away to banks.
- gambiting 14y agoWell yes, that is basically what happens. It was actually the UK Ministry of Treasury that said in a statement, that after you give money to a banker "that money is for all intentions and purposes owned by the banker. The banker is now in your debt and should repay his debt upon your request. He is, however, free to invest that money however he wishes, as long as he is able to repay all the debts". But as we all know, sometimes investments(high-risk loans especially) sometimes don't pan out and the banker literally cannot pay you back. There is a EU law that says that a bank needs to always have enough money to repay the first 100 thousand euros to each of its customers - but there is no such guarantee for any amount above this, so if a bank goes bankrupt you won't get anything above 100k, until the bank regains financial stability or its possessions are sold and debtors payed off.