I know very few bitcoiners who feel this way, but we went out with a group of friends last night and every single one is comforted by the FDIC.
Discussion
Did you talk about what is insuring those FDIC insurances? Nobody talks about that.
Yes or about how much FDIC insurance exists ($125bn and a $100 loc) relative to the $22T in banking deposits?
Yep, I brought this fact up with our friends. Most said “Well that would never happen.” One started to look extremely uncomfortable and texted me to go to coffee today.
Then you can also tell him that since 2008 now bank bail-ins are allowed... and show him the leaked FDIC meeting conversation...
Oh another thing #[5]
Many still dont know it yet... but there are 0 reserve requirements for banks anymore... #[6]
So true. I actually got into an argument with a very successful, very smart businessman friend about this last year. He was adamant I was wrong so I made him Google it in front of everyone. He kept saying, “That can’t be right.” 🫠
The main problem is that there are no adults left. There’s no one to trust at the fed, in politics, they’re mostly all old geriatrics. Who will restore trust and order? Who would they put out there with any credibility to bring order and give the illusion of security?
I don’t remember the exact amount but the FDIC has nowhere near enough to insure every $250K or less depositor.
We are only talking about the 16th bank of the USA nonetheless. They can’t even insure that one 16th bank fully. Do whatever you want with this information.
They have enough to cover 1.26% of deposits if you include their credit line.
If I’m not mistaken the fdic credit line is $500bln.
Seems small to ensure all deposits over 250k.
Bitcoin is FDIC insurance
People don’t think this through. Hell, I never did before bitcoin. They just trust. One friend must have stewed on in last night because he wants to go to coffee today.
