r/TheGreaterDepression • u/jeremiahthedamned • 9d ago
Who needs to have protection for their savings, not normal citizens.
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u/Aquired-Taste 9d ago
Looks like the new administration needs a group of Luigi's to come say "hello, let's have a frank discussion!"
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u/Ok_Sea_6214 9d ago
Lol the fdic is a ponzi scheme, it only covers like 1% of "insured" deposits. And that money is in treasuries, which lose 50% of their value as soon as they try to sell them, meaning at best they can only cover 0.5% of what they owe. Except that if the US banks fail then those treasuries are probably worthless.
The other thing is that the government has zero legal obligation to save the fdic. People seem to assume as much, but this is not actually the case, it's a bluff.
You might think the Fed will save us, except the Fed has been "saving" the system by extending credit lines. So when a bank "fails" the Fed just gives an exemption saying all the bad assets the banks hold will be "treated as if" they are good, so this bank can create more bank credit backed by nothing. It's like saying "you need at least 90% to pass your exam, you only got 10% but we'll pretend you got 90%". If this was a pilot exam, well then a plane is about to crash, but the FFA is willing to gamble the lives of the passengers.
What they did in the case of SVB is say "wow you got 10% on your pilot exam, but this other pilot got 100% so you'll just be co pilot with them and it'll be fine". Except that other pilot is doing alcohol, drugs and has suecedal thoughts, and the FFA knows but again pretends not to see.
I suspect Biden is going to crash the banks now, before Trump comes in, that way Biden takes the blame but people won't revolt because they think Trump will save them. Except he won't, it's just your basic good cop bad cop routine, to get people to accept CBDCs.
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u/anticapitalist 9d ago
literally shocking how stupid trump is.
why cant we get a tolerable non-classist democrat to beat these guys?