Is the FDIC Insolvent?

The earthquake rumbling beneath our banking system is registering on the Richter Scale with questions of whether the FDIC insolvent or safe.

And the fact that District of Caligula blinked when O’Biden said they we’re going to let SVB’s clients go belly-up – to the tune of over $150 Billion in depositors’ money – is sending quivers and aftershocks to the financial markets.

So, without saying it’s insolvent, let’s just say that it’s mathematically impossible for the FDIC (or any other entity) to meet their requirements of guaranteeing insurance for $250,000 PER CLIENT.

And did you know most people think the $250,000 insurance is per account?

Not true.

So, if you have 4 accounts at a bank with $250,000 in each one, your coverage is limited to a total of $250,000.

And even then we know, if a push comes to a shove, the FDIC can’t pay up.

So, to think that the O’Biden Administration was actually considering covering only the $250,000 and screwing everyone else is unimaginable.

But it’s for real and should serve as a serious wake-up call.

And it’s also a reminder that the Neocons in charge of the White House are totally blind to the financial risks of allowing a bank to fail and reject any takeovers from the private sector.

Cue up: Hong Kong Shanghai Bank (HSBC).

When the news broke about SVB, HSBC immediately responded to take over SVB in the UK.

But…and this is a very Big Butt…

Stinky Joe and his Boyz rejected the bids in the USA.

If the FDIC is Insolvent Then Why Bother?

You would think that common sense would welcome any venture capitalists takeover bid for a failed bank.

Especially when the insolvent FDIC can’t cover the damage.

But NOOOOOO!

The District of Caligula is more interested in handing the Ukrainian pimp/comedian president a blank check with no accountability…and no end in sight.

Adding gasoline to this banking crisis fire, O’Biden has paid all the salaries of the Ukrainian government employees AND THEIR PENSIONS while screwing Americans in Social Security.

Needless to say that the Neocons/morons running the show in DC  have proven they lack any trading experience whatsoever.

And they’ve failed to monitor the risks associated with Sovereign Debt combined with artificially low interest rate duration risk.

So now we’re seeing the long term bonds collapse in the face of ongoing wars with short-term rates rising in the face of endless inflation from war.

Bottom line here?

If you’re still holding long-term government bonds, get out while you can.

And be sure to learn how to survive the increasing banking crisis in our March edition of “…In Plain English” (HERE).

Share this with a friend…even if they’re clueless about the FDIC being insolvent.

They’ll thank YOU later.

Remember: We’re Not Just About Finance

But we use finance to give you hope.

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