The FDIC is Broke: $13 Trillion in Assets is Unprotected

02-13-2010 • MyBudget360.com

If Americans would stop and think of the implication of having an insurance fund with no money backing up $9 trillion in their deposits, they would probably pause for a few minutes. And just because your money is sitting in a bank account doesn’t mean that it is safe. The U.S. Treasury and Federal Reserve is on a war path to devalue the dollar so even though your money is nominally the same, in real terms you have gotten a lot poorer. The dollar has fallen by over 15 percent since March. This is an enormous amount but given the policies we are following, it is no surprise. With gold at an all time high of $1,150 an ounce we are starting to see some strange behavior in the markets. The last time we had such a deep banking crisis was during the Great Depression. This is what was seen back then: The fact that the FDIC is broke makes you wonder what the next steps for the banking system are. If it can’t make it with trillions in bailouts, what will the government do to backstop the entire system?