Remember that scene at the beginning of It’s a Wonderful Life, where people are all desperately trying to get into the bank because if it fails before they get in, they lose their money? That’s what the FDIC prevents.

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    • shortwavesurfer@lemmy.zip
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      9 days ago

      Oh, I have no opinion on the political side of the article. I’m just saying that the FDIC has 1% of what they claim to ensure. Many people are absolutely reliant on the FDIC in case their bank were to ever fail. And that’s not a particularly fantastic idea.

      • ricecake@sh.itjust.works
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        9 days ago

        No, that’s actually a pretty reasonable idea. Given that they’ve never lost a cent of money, can take more from the other banks if they need to, and are ultimately backed by the people who print the money.

        You don’t understand insurance or how the FDIC works.

      • raynethackery@lemmy.world
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        9 days ago

        And exactly how much do said banks have on hand to cover deposits? If there is no FDIC then banks should be required to have 100% of the required liquid cash to cover all deposits.

        • shortwavesurfer@lemmy.zip
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          9 days ago

          I agree. Banks should never lend people’s money unless those people specifically agree to have their money lent out. A bank should not be legally allowed to lend out your money and then say that you can come get your money whenever you want because it’s not true. If the bank specifically tells you that this product will lend your money out and that you cannot retrieve your money for X amount of time, that’s fine. That tells you the consumer that your money will be unavailable for this amount of time. And that makes you make the decision as to whether you can deal with that or not. If you can’t, you don’t use that product and don’t lend out the money.

      • prole@lemmy.blahaj.zone
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        8 days ago

        So it sounds like you do have an opinion…? How can you say that you don’t have an opinion “on the political side” of things, and the in the next sentence give your opinion? Just… what?