Bailout Bill Fails House Vote

[UGAalum94]

Originally Posted by PeppyGPhiB

People, people, people...we cannot allow AIG to go under. I don't think people get how serious this is. It isn't just a matter of saying, "Sucks to be them. They shouldn't have loaned people the money to buy big houses if they couldn't afford it. Let them die!" If AIG fails, so will a number of banks and lenders that AIG insures. And then NONE of the banks will have the money to conduct their business. FDIC will have NO meaning, because there won't be enough money to cover the losses. That's YOUR money that will be GONE. One day you may go to use your debit card and find that your bank will not allow you to withdraw any funds...because whoops, it doesn't have your money anymore...it's now at another bank, covering its debts.

I thought the AIG deal already went through separately.

And can you take me through how you get from AIG to FDIC failing completely?

ETA: This link is a little old considering what's happened between then and now, but it explains how the FDIC would meet it's obligations even if more banks did fail. http://biz.yahoo.com/ap/080916/bank_...ts_safety.html

I'm certainly not feeling good about things, but a real doomsday scenario seems a little further off than your post implies.

[a.e.B.O.T.]

Originally Posted by UGAalum94

I thought the AIG deal already went through separately.

And can you take me through how you get from AIG to FDIC failing completely?

FDIC insures bank deposits in the event that a bank fails, like AIG, WaMu, etc... its the govt. basically protecting you in case your bank can't pay you your money. Well, with all these banks going under, it is putting more strain on the FDIC to insure all deposits, etc... Essentially, this is another way AIG's collapse directly effects the government, and therefor you... Secondly, AIG, WaMu, etc are not just small time banks, oh no, these are the banks that have given loans to other banks, etc...

[UGAalum94]

Originally Posted by a.e.B.O.T.

FDIC insures bank deposits in the event that a bank fails, like AIG, WaMu, etc... its the govt. basically protecting you in case your bank can't pay you your money. Well, with all these banks going under, it is putting more strain on the FDIC to insure all deposits, etc... Essentially, this is another way AIG's collapse directly effects the government, and therefor you...

Right, the FDIC is likely to experience more strain, but I don't think it's in any danger of failing to meet its obligation because it has other resources at its disposal if it needs them, like you and me and our tax dollars.

I have no doubt that we're all going to be affected, but I don't think that we need to worry about our FDIC insured funds particularly.