Question...

[fleabiscuit]

I don’t like thinking such things but;

If Ted Cruz and the Tea Taliban manage to shutter and default the United States does that mean that the meager savings some peeps still have will NOT BE COVERED by the FDIC when banks and credit unions shutter too?

[gopiscrap]

1. Probably

[A HERETIC I AM]

2. Doubtful.

The FDIC is basically an insurance program that banks pay into.

I just don't see that being allowed to fail.

[fleabiscuit]

3. Still not feeling the love.

"...it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities."

[fleabiscuit]

4. Hmmm...

I also wonder if the privately paid cops and national guard will be so willing to shoot and gas the next soon to follow Occupied movement when their Koch Kredit Kards can’t buy anything.

[SheilaT]

5. Banks and credit unions won't shutter just because the federal government defaults.

Their money is from the deposits made by their customers, and loans made to them. I don't know enough about the FDIC to know if its money stands alone from the federal government -- probably not -- but we are a very long way from banks and credit unions actually shutting down.

Really.