Biden said, "Americans can have confidence that the banking system is safe. Your deposits will be there when you need them." Should you believe him?

[Adaeva]

Americans can have confidence that the banking system is safe.

Updates

+1 y

According to the FDIC, $124.5 billion is currently on the agency’s balance sheet, with an additional $100 billion line of credit available from the U. S. Treasury, for a total of $224.5 billion. That is slightly more than 1% of the more than $22 trillion in the US banking system. Does it make you feel safe knowing that the FDIC doesn't have enough money to cover even one very large bank?

[Anonymous]

The statement made by President Biden suggests that the U. S. banking system is secure, and depositors can trust that their funds will be available when needed. This is partly due to the fact that the Federal Deposit Insurance Corporation (FDIC) insures deposits up to a certain amount, providing an extra layer of protection for depositors in the event of a bank failure or other financial instability.

It's worth noting that the safety of the banking system can be impacted by a variety of factors, including economic conditions, banking regulations, and the stability of individual financial institutions. While the FDIC insurance can provide some protection, it's important to do your own research and due diligence when selecting a bank or financial institution to ensure that it meets your individual needs and risk tolerance.

In summary, while President Biden's statement may be reassuring, it's always wise to stay informed and vigilant about your finances and the safety of your banking institution.

[Massageman]

SV made some totally stupid investments, even for those "investors" who are good at covering their six. Sad that it will effect so many of us "regular folk" just trying to eke by.

I believe Biden and his troop as much as believed Obama when he said my health care wouldn't cost "one dime more". In only one sense , he WAS right. It doesn't cost ONE dime more: instead, it now costs about 1,300 dimes more - per MONTH!

So, no, I don't buy what Biden is trying to sell.

[Massageman]

Thanks for the MHO.

[Kessia99]

Yeah, this crash was a deliberately orchestrated attack on the crypto sector. To ensure the supremacy of legacy financial institutions.

[Akam93]

Hell no.

[Adaeva]

That is brief and to the point.

[abc3643]

Yes, you should because the United States Treasury is the safest financial organization on Earth.

What is annoying is that many of the Dodd-Frank banking regulations put in place after The Great Recession to prevent bank failures like this were repealed during the Trump Administration.

Once again, people failed to learn from history and so they were condemned to repeat it.

Libertarians... they hate socialism until they screw themselves (and others) with their believes than love the socialist bailouts they get.

[Leopard23]

Lol the banks were bailed out during the Obama regime. What Is socialist about banking organisations purposeful taking risks because they know the taxpayer will pony up the dough even as millions lose their homes and jobs.

[abc3643]

@Leopard23 The banks were bailed out, yes. And then, because of it, the Dodd-Frank and Volcker Rules were created. But, sometime during the Trump Administration, these rules were relaxed and so risky banking practices became more prevalent again - just like they were before The Great Recession.

[WindAtMyBack]

About the update. I have no idea if those numbers are correct, but you forget something important. You forget the assets of the bank itself. Banks collapse mainly because of cash flow and panic runs on the bank, not because of total assets. They need highly liquid assets to cover a run. But just because they don't have liquid assets doesn't mean they have no assets at all.

They need cash flow. If they lack cash flow they can borrow. But if they lack cash flow, it's likely that their credit rating has suffered also. So to borrow money costs more with higher interest, which in turn causes more cash flow problems. The whole thing has a snowball effect.

The FDIC doesn't need to cover the entire assets of a bank. They constantly monitor the banks, and it would never get to the point that the bank's assets went to zero, not even close. The FDIC is doing things behind the scenes that you don't hear about. They'll jump in long before a bank's balance sheet gets to zero.

[Adaeva]

I have no doubt that 1.3% is more than enough to cover any bank, even the largest banks. However, assuming it is possible to have an economic collapse resulting in a major banking crisis affecting hundreds or thousands of banks, 1.3% will not be enough. Is that likely; probably not.

[WindAtMyBack]

Anything is possible. But preparing for everything is impossible.

Then there is the question of whether that money even exists.

I don't know if there are any triggers that can stop a widespread run on hundreds or thousands of banks. That would be the obvious thing to do. Something similar to the automatic stops of trading in the stock market. It's a quick temporary time-out when things get too heated up.

[exitseven]

The SVB invested in ESG vehicles and had a corporated culture that embraced diversity and equity and all the other liberal buzzwords. Investing in so called green companies and refusing to invest in companies like petroleum that have a proven track record of making money was the wrong thing to do. Biden is wrong to bail out this company. He did this because the bank and it's officers were all democrat donors as is all the high tech companies that were depositors in the bank.

This bank should have been made an example of and allowed to go belly up and have all the depositors lose their money.

[CreatingWonders]

I wouldn’t believe the government as far as I could throw it.


They’re all corrupt liars, Biden is a senile old fool who I wouldn’t trust with a ballpoint pen.


The banks have to all collapse so they can bring in this digital money from hell, there’s no other way around it that I can see, collapse the banks they all close down and bang here’s your CBDCs.


You’ll need a good score on you’re social credit score to use it as well you’ll also need your digital ID to buy or sell and don’t forget to top up your millionth convid injection or no food for you. This is what I imagine it will be like.

[Surely]

First let me say. If your age is correct. Then let me congratulate you on being so young and having your eyes and mind open to the world around you. More young people need to be this way.
As for your Biden question. I don’t trust anything that comes out of his mouth. If his only goal in life is to destroy this country. Then that is the only thing he is doing well!

[Anonymous]

No, but you should never think that.

There is however an insured threshold, so if your deposits are within this range then you should consider them to be fine.

If you have more than the insured amount and it is just lying around in your bank account then you deserve to lose your money anyway.

What you can be completely certain of is that panic WILL create a real problem 100% of the time.

So you should avoid manifesting your worst fears, but again you are supposed to be doing that all the time, nothing changed recently which should be modifying your behaviour.

Ultimately you are responsible for managing your wealth and again this is something that you should be doing all the time and part of that means that it doesn't matter what I or anyone else says you should make your own choices.

[Opinion Owner]

Who's money is that?

I don't think it can be Joe Shmoes money because that is $66,000 for each person in America, cash we are talking about and according to this data from wikipedia the median wealth of an American is only $93,000.

Am I expected to believe that the lions share of the average Americans wealth is cash on hand?

I don't think so.

Doesn't this necessarily mean therefore that we are talking about the money of the extremely well off?

But ofcourse if that were the case then wouldn't that mean that either the directors of the banks we negligent, presumably criminally or that the 1% had crashed those banks on purpose?

[RolandCuthbert]

Dude, just close your bank account and stop playing your employees.

?

I know you are only 14 year old. But you have to know how economics works.

https://www.youtube.com/embed/m9a8GI8fDug

[Avicenna]

Excellent question. It would be very naive to believe Biden. It's not as if there has never been a "bail-in" when it comes to bank accounts. And printing money to cover them will fuel much higher inflation that is already the case. Inflation would be a de facto bail-in.

[jshm2]

It's actually more a confidence exercise, than anything else.

We know the USA is fucked as bad as Rome before their collapse. It's just a matter of time to see if it's China or the Arabs that take up the mantle.

[SpudSteer]

Bro I would rather watch a broom not say anything for 10 hrs than watch him he is a puppet so no I don’t believe him he falls asleep can’t speak and fumbles every bag please don’t listen to this man I’m 20 and one of the few people I know my age who thinks this way

[genericname85]

the banking system only works as long as people "believe" in it. cause money isn't worth shit. it's not backed by anything. it's all make believe. numbers on paper, nothing m ore. so if people stop believing, money loses it's value. that's why he tells people to have confidence. cause he knows that's the only thing that keeps this country going.

[Quackthulu2]

Let me answer your question with another question. Have you ever known a politician to be trustworthy?

[Dinosaursandanime65]

Yesterday I officially declared myself as a Trump candidate and I don’t see that changing anytime soon. You know what they say, get woke go broke, like literally everyone. Though I’m sure that oughta change at least a wee bit once Sir Trump retrieves his well deserved presidency back.

[Anonymous]

Absolutely not, never trusted the banks
I guess knowing a holocaust survivor will do that precious metals are the way to store value

[Adaeva]

Gold increased about $100 per ounce after the collapse as people look for a safe haven.

[Opinion Owner]

Means my next cheque will bring a fillet steak in my direction

[beernbacon69]

Honestly, I don't trust a damn word that comes out of that idiots mouth. He's lied about so much before, and is just interested in protecting his interests and doesn't give a shit about the American people.

[Dargil]

The best strategy is to believe NOTHING he says, including and and the.

[Anonymous]

Of course. Brandon never lies and always have your best interest at heart. He’s a good man Savannah, a GOOD man 🤡

[gorydetails]

He's desperately trying to avoid the financial collapse he had a hand in creating.

[LiamJHayden]

I believe it with the caveat that if the FDIC fails the government will just have the Fed monetize the shortfall, causing more inflation.

[ThomasDavid1989]

A lot of what America does, isn't the greatest, but it's better than some of the shit holes in the middle east

[Exterminatore]

I don’t believe anything he says.

[Adaeva]

Not much anyway.

[AngryCarl2]

The banks will be bailed out by the taxpayer... again.

[NostalgiaSenpi]

I have nothing to panic over. FDIC will insure what little I have.

[007kingifrit]

no, his entire strategy is "fake it till you make it"

[OddBeMe]

Well the actual customers of Silicon Valley’s banks got their money back. So yeah. FDIC is secure.

[In_Trance]

Banks collapse every year
Markets crash every 7-8

The world is not ending

[Leopard23]

... can I still keep my doctor?

[Anonymous]

Has he ever once told the truth?

[grega239]

didn't 3 banks just fail?

[MysticDevice]

I sure as hell don't

[Anonymous]

Dw biden has this under control

[Anonymous]

Well it is insured up to a certain amount

[Anonymous]

Hell no.

[_Just_A_girl_]

jokester

[Mr1derful]

Absolutely!

[BarryLiverstone]

Yes you should