Chronicles Of Depression 2.0: #294: OMG

FDIC seeking temporary unlimited Treasury loans

WASHINGTON (Reuters) – The Federal Deposit Insurance Corporation is seeking temporary unlimited borrowing authority from the Treasury Department, according to a copy of the final Senate bailout legislation on Wednesday.

In the bill, which is expected to be voted on by the Senate later Wednesday, the FDIC is seeking the borrowing authority through the end of 2009.

The FDIC currently insures up to $100,000 per depositor and up to $250,000 per individual retirement account at insured banks.

The increase would be a big boost for the FDIC’s ability to insure bank deposits and send a message of confidence to individuals and businesses thinking twice about leaving their money in their banks.

The agency has access to a total of $70 billion in short- and long-term lines of credit. It can also charge banks higher premiums.

Emphasis added by me.

OK, that just upped my fright level.

That has to be the biggest bet every made.

I thought what just happened in Ireland was breathtaking — they just insured everything.

The state guarantee exceeds 200pc of Irish GDP, marking a new phase in the escalation of the crisis.

Emphasis added by me.

My friends and I marveled at how West Germany had the money to basically buy back East Germany from the Communists after the Berlin Wall fell.

Now Ireland has just said it will buy its GDP twice over.

I am getting the vision of scary men sitting around a table, each holding a hand of poker, and no one dares call — they all keep raising and raising and raising.

Where is the call going to come from? When will it happen?

All Chronicles of Depression 2.0 posts. Better read them.

Explore posts in the same categories: Bank Collapse Watch, C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Politics, C.O.A.T. - Scams, C.O.A.T. - Self-Defense, Depression 2.0

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