FDIC May Be Prohibited To Borrow From US Treasury Due To Federal Debt Ceiling

[PurpleKoolAid]

Maybe this is why there was talk by Sheila Bair the other day about going to "healthy" banks to recapitalize the insurance fund. Makes you feel secure about money in banks , doesn't it? I don't believe for a minute that congress wouldn't raise the debt ceiling to supply the FDIC with funds. The whole banking system would come down.


http://www.zerohedge.com/article/fdic-may-be-prohibited-borrow-us-treasury-due-federal-debt-ceiling-limitations

[Six Gun Jim]

They are really running short on miracles and that is what i always thought would happen in the end. All of this shit is pumping up a crash that will be ten times the severity it needed be if only they had let things fall and we had gotten on with it. The obvious total desperation of moves like this cannot end well, to go this far on so many levels is a fools errand. DOOM it is. -James

[Leonytus]

I bet they do both. Raise the ceiling and get money from banks as a back door bailout..

[maitreya]

I read yesterday that Bair has terrible vibes with Geithner and would sooner gnaw her own arm off than ask the treasury for funds to replenish the reserve

[jtmo3]

When the hell did rules and law make a shit? It's like the TARP, there is so much  money out there floating around that who in the hell can track it? Something tells me that when it's needed, it'll be in the FDIC accounts. Where it comes from, who the hell knows and for the most part, the country could give a shit less.

[max_power]

debt cieling=meaningless. i dont know why they even bother set one

[tofu2u2]

I beleive this is the proverbial "slippery slope" on which we shall slide into chaos. This cannot end well at all.

[jfc]

I believe that Bair's dislike for Geithner was just a smoke screen for the real reason for not going to the government for funding - it is broke.  How could you risk destroying the entire world financial system just because you did not personally like someone? 

[picasso moon]

I bet they do both. Raise the ceiling and get money from banks as a back door bailout..

Yeah, you can pretend you're not broke, at a certain point everyone else stops pretending that you're doing anything except pretending.
The government borrows from banks which are alive thanks to... borrowing from the government. I'ts the 3 Stooges'  "milk cow".

[Doomerific]

debt cieling=meaningless. i dont know why they even bother set one

Seriously.  I thought the point of calling it limit was that you didn't go over. 

What we have is more like an automated debt verification system. 

'Hello customer, you are now $12 trillion in debt, are you sure you would like to witdraw $2 trillion?'

Yes indeed.