If these lunatics get rid of the FDIC and the Consumer Protection Agency, what the hell are we supposed to do?

[PlanetBev]

There’s just so much money you can stuff in a mattress.

Seriously folks, this shit is scaring the hell out of me.

[kimbutgar]

1. And I read here today that they are going to do away with the dollar and make bitcoin the currency.

Last edited Sun Dec 15, 2024, 10:24 PM - Edit history (1)

I think the outrage over them do away with tthe FDIC will cause a back lash.

I had a CD at First Republic that went under. I was still able to access my money and move it to another bank because of that FDIC insurance. Once people find out they will rebel. FDIC protects investors from stock market crashes like in 1929.

[RandomNumbers]

2. I think we will see A LOT of buyer's remorse.

Not from the hard-core MAGAts - they will be too proud to admit they were duped - but ordinary people who got suckered by the media into supporting TSF.

[Orrex]

44. Nah. Never happen.

They'll be desperate to name any scapegoat who isn't themselves, nor will they blame their choices.

Trump and his obsequious mainstream media will blame Democrats, so every Trump voter will blame Democrats. Maybe a few will realize their error, but probably no more than 1 in 10,000 or so. The rest will go to their graves imagining themselves as brave patriots fighting against the woke commie socialist Democrats of The Deep State.

[kerry-is-my-prez]

58. Yes they're looking into it by replacing it with something else that billionaires make money off of.

At first it will seem fine and then it will end up the way other privatized things do. It might look good at first but then will start getting worse and worse - little by little so people don’t really notice. Or maybe people will have to start paying a small fee for MDIC (Musk Deposit Insurance Corporation) or TDIC (Trump Deposit Insurance Corporation). The Trumpsters will love it and it will be promoted heavily by RW media and Fox and everyone will be told how great it will be (similar to how great they say Medicare Advantage is - you’ll get e free gym membership!).

[Wiz Imp]

13. I have no doubt there are many people in Trumps' orbit who would love for this to happen

But there is absolutely zero chance that can happen.

[LymphocyteLover]

42. agree... it's not out of the realm of possibility but would be so insane that this might be the least

of our problems if they do it.

It's also either:
1) mind-bogglingly dumb on their part
2) a knowing massive and obvious scam

I would think enough serious people would say no.

[DBoon]

53. Isn't "mind-bogglingly dumb" written into the Republican Party platform?

They seem to excel at "mind-bogglingly dumb"

[Demobrat]

28. I had a Lehman Bros CD when they went under.

I had bought it through Fidelity. The money was back in my account in under 48 hours. Thanks to the FDIC.

[Jit423]

78. Aren't you assuming that most people know and understand the FDIC and even care about the Consumer Protection Agency?

Most of the people I run into are so ill-informed they don't give a shit about losing their own money.

[snowybirdie]

3. Looks like panic

is setting in. Time to relax and ignore the rumors being promoted by Lord knows who. These new folks aren't Gods and we still have opposition in Congress. Time to fight the nuts and their limited ideas. Gotta be positive for your own mental health.

[PlanetBev]

7. I'll try keep that in mind, guys

Sometimes I forget 1/2 of the county is against this atrocity.

[a kennedy]

43. I know, I'm scared shitless hearing all the stuff that "might" happen......

Gonna try to live the best I can, not listen to shit may-be’s and breathe.

[lame54]

76. It would help if...

Those in actual positions to oppose would stop rolling over

[Quiet Em]

4. They are the party that caters to the billionaires now.

They aren't even hiding it.

[elleng]

5. They WON't 'get rid of FDIC, as its much too important an agency,

insures that EVERYONE's deposits will remain available.

[A HERETIC I AM]

16. Not to mention....

that it is an insurance program that the BANKS pay premiums into! It's not like it is taxpayer dollars. Not one cent comes from the budget, so why would the incoming administration even consider getting rid of it?

I think way too many people don't understand what banking was like before the Federal Reserve and the FDIC came along. Local banks would fail all the time and often would cause localized depressions.

If the only bank in a small town in the middle of farm country failed, then everyone who had money in the bank lost it. From what I gather this sort of thing happened way too often before the various banking reforms came along before and after the depression.

And for the record, I know the Fed was formed before the Great Depression. That massive economic downturn was it's first major test and it failed miserably. Compared to how this country weathered the great recession 75 years later, the argument could be made that the Fed and the Treasury caught a falling knife and kept this country from going into a second depression. Also it is important to remember that not one single penny in a savings or checking account held at ANY bank in this country was lost between September, 2007 and July of '09 and any bank failure since. The FDIC has shown itself to be an effective organization.

[elleng]

22. ZACLY!!!

MOST people don't understand, what banking and MANY other things, and continue to be ignorant 'thanks' to tmp+ many other repugs.

AWFUL so many don't appreciate HIGH value of Consumer Protection Agency.

I'll repeat it again: UNREGULATED capitalism CANNOT thrive.

[LymphocyteLover]

64. but unregulated capitalism makes it harder for capitalistic thieves to steal

[elleng]

74. ZACLY!!!

[LymphocyteLover]

63. just watch "It's a wonderful life" to understand what a bank panic looks like

and enjoy a wonderful movie too

[calimary]

19. Hope you're right.

[erronis]

24. No. The FDIC is only for the small accounts --- 250,000 and under.

These bastards (and a bitch or two) are multi-xillionaires. There holdings are not in the banking system. They have zero $s to lose if the banking system insured by the FDIC goes under.

Different rules for these folks.

https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks.[8]: 15  The FDIC was created by the Banking Act of 1933, enacted during the Great Depression to restore trust in the American banking system. More than one-third of banks failed in the years before the FDIC's creation, and bank runs were common.[8]: 15 [9] The insurance limit was initially US$2,500 per ownership category, and this has been increased several times over the years. Since the enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010, the FDIC insures deposits in member banks up to $250,000 per ownership category.[10] FDIC insurance is backed by the full faith and credit of the government of the United States, and according to the FDIC, "since its start in 1933 no depositor has ever lost a penny of FDIC-insured funds".[11][12]

Deposits placed with non-bank fintech financial technology companies are not protected by the FDIC against failure of the fintech company. If the company places the money in an FDIC-insured bank account consumers are protected only under some conditions.[13][14]

[A HERETIC I AM]

33. So where is the net worth of Elon Musk held, if you don't mind me asking.

I know where it is, I'm just curious where you think his $345 Billion (or whatever the current figure is) is stashed.


And BTW, this;

They have zero $s to lose if the banking system insured by the FDIC goes under.

is not true by any stretch. The very wealthy rely on banks for all sorts of reasons. If the FDIC goes away and as another poster points out, there is a run on banks, that is in no way going to be to the benefit of the Musks of the world.

[drmeow]

25. I seem to recall

a push by billionaires to raise the maximum amount protected by the FDIC not that long ago - unless they plan to replace it with the RPOFDIC (Rich People Only Federal Deposit Insurance Corp), that's not going to fly

[Mike 03]

65. They should absolutely raise it to at least $1 million

Not a majority, but certainly enough Americans approaching retirement have saved this much. '
Yes, when I was a kid in the 70s and 80s, a million dollars seemed like a fortune. The recommendations for retirement savings is over $1 million (the reality is far less), but some have managed this and their life savings should not be at risk because a bank goes under or there is some huge hack.

[drmeow]

72. I was referring specifically

to when Silicon Valley Bank failed and all the rich tech bros screaming that the feds needed raise the limit - because that was THEIR bank and all of a sudden THEIR money was at risk. My point is that the oligarchy doesn't want to get rid of the FDIC unless there are guarantees that THEIR money is protected.

[Blue Full Moon]

34. It has been one of their targets for a long time.

[LymphocyteLover]

62. why though?

[Blue Full Moon]

68. UPS and FedEx

Make a lot more money. I was going to send a package to Alaska. UPS want 75 dollars. I went to USPS and it cost me 16 dollars. They privatize run it into the ground and then ask for bailout money. It's the biggest scam.

[LymphocyteLover]

71. what do that have to do with the FDIC?

[LymphocyteLover]

46. I don't even understand the rationale for getting rid of it, unless they simply want to rob us blind

[elleng]

49. There IS no rationale.

[LymphocyteLover]

73. apparently it's for "streamlining" where they will move the functions into the Treasure Dept

not removing the FDIC altogether...

Also seems unlikely to happen

https://www.reuters.com/markets/us/trump-advisers-reported-plan-ease-banking-oversight-may-not-get-required-support-2024-12-13/

[rampartd]

61. bingo.

the "bitcoin reserve" adds we tax[ayers to the base of ponzi's pyramid.

[underpants]

6. The FDIC???

Jesus upping the guarantee limit stopped a complete collapse a month before the eventual collapse in 2008.

Before the FDIC a bank opening had to include a tour of the vault to show strength and security because if someone broke in all YOUR money was gone.

[Glorfindel]

8. Hurry up and die, of course.

We're of no further use to the oligarchs and billionaires.

[Blue Full Moon]

35. That's exactly what they want.

They have been doing a great job of it. Americans pay more than almost any other country and we die about 20 yrs before. Awhile back there was a republican politician that commented that the grandparents should die so that the economy would be stronger and make the family richer. Then there is the fact that during Bush jr administration they found out most workers don't live to retire and it's the lack of health care. So instead of health care they gave money savings to corporations they reduced the amount of money going into retirement accounts because those people were going to die anyway. They are a death cult.

[Attilatheblond]

9. About 46 years ago, a friend's husband, who happened to be the Assistant State Auditor where we lived, advised us

to put our money in coffee cans and bury in our back yards. He said this sincerely after reading of upcoming changes to banking laws and applying his great skill at seeing where things were going. Retired Army Colonel who was very involved with US efforts to rebuild China's economy after WWII. A very smart gent.

[A HERETIC I AM]

17. Putting that money into a broad based portfolio of S&P 500 issues ....

from 1978 to now would have averaged more than 12% per year.

What are the returns of the Coffee Can scheme?

[Silent Type]

10. If anything, they'll merge a few agencies and call it a win and trumpsters will cheer.

[StarryNite]

11. Since Roe was overturned I think anything horrible is possible when

horrible people want to do it.

[spudspud]

12. I can't see the big banks allowing FDIC to go poof.

It would cause a run on the banks. And they don't hold a 1:1 ratio of money deposited vs. available to withdraw if everyone tried to take out their cash.

[A HERETIC I AM]

20. Exactly.

It isn't going to happen.

I remember reading something one of the higher ups in Trumpy's first administration said, something like one third of the shit he suggested for policy initiatives or ideas he wanted to institute were just downright stupid, another third was physically or legally un-doable and the other third was blatantly illegal.

[Blue Full Moon]

37. They don't care. They have their's and that is all that matters.

[Silent Type]

60. They won't have their's any longer in that kind of collapse. Kind of perverse feeling like their

profits might save us.

[Marthe48]

14. I'm sure they'll privatize bank insurance

It won't be as good, it won't cover all losses and the private insurance companies will go belly up as soon as they collect premiums from middles income people trying to play by the rules

>sarcasm<

[A HERETIC I AM]

21. The FDIC is not a budget item of the US Government.

So it is in effect, already privatized.

The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country.

https://www.fdic.gov/about/what-we-do

[Wiz Imp]

50. So abolishing it saves no taxpayer money, right? Just like the USPS as well. What about the CFPB?

What other agencies do they want to get rid of that aren't funded by ta dollars?

[lastlib]

15. Bend over and take it.....

Seems the only option left--the only one they want us to have.

[Sucha NastyWoman]

18. My solution is going to be putting my cash in real estate

Even if the economy goes to shit, at least you can live in it or lease it until things recover someday .

[Blue Full Moon]

38. That's what I have been thinking.

I was thinking about selling a house I bought for investment and I think I am going to just hold to it.

[LiberalArkie]

23. The U.S. would be like Russia, Syria, Iran, Saudi Arabia etc..

[carpetbagger]

26. There are banks in other countries.

Constantly transferring money is inconvenient, but possible.

[mzmolly]

27. Join a credit union.

https://ncua.gov/newsroom/press-release/2020/deposits-are-safe-federally-insured-credit-unions

It's clear to me that tRump wants to weaken our economy and destroy confidence in the banking system so he can make a killing in crypto and appease Putin.

[Blue Full Moon]

39. 100% Doge coin. Too cute right.😡

[Wiz Imp]

51. Credit Unions are insured by the National Credit Union Administration (NCUA)

also a government agency. I would guess that if they want to get rid of the FDIC, they want to get rid of the NCUA as well.

[mzmolly]

54. They haven't thought that far ahead.

NCUA doesn't have the scary word 'federal' in it.

[Wiz Imp]

55. Good point, I guess "national" isn't as bad. But this is one I think they'll figure out pretty quickly anyway.

[mzmolly]

67. Perhaps we can get them to ban the NRA?

[keithbvadu2]

29. Trust your betters. They will surely be looking out for your interests.

[Noel Kums]

30. You could argue Consumer Protection is lip service. The FDIC part is more terrifying.

[Farmer-Rick]

31. It should scare everyone

Take a look at what happened in the Republican Great Depression. Without FDIC, that can easily happen again.

And they will sell it as States'right to insure their own banks. Or bankers insuring themselves because you can trust the bank you have your money in. They will spin it and lie that it makes depositor's safer. It will save banks money because they won't have to pay for FDIC insurance and they won't have to worry about bank regulators. It's called free banking with no restrictions and no safe guards on your money.

Before the Republican Great Depression, banks either were insured by the state or a local government agency or they insured themselves. It all failed. It all failed to provide any compensation when the banks took their depositor's money to pay off their debt.

When Trump humpers and the fascist start selling Americans on getting rid of the FDIC, they will be pushing all those same useless methods that failed during the 1920s thinking Americans are too stupid to know those systems all failed before. Just like when they did away with the Glass–Steagall and we had the crash in 2007.

But this time, because our economy is more fragile than in 2000, it won't take 5 to 7 years for a crash to hit.

Don't buy that the systems the bankers and the Trump humpers want to replace the FDIC with are any better than they were in the 1920s.

[Blue Full Moon]

41. They have been undoing the protection.

Started doing it big time during Bush jr administration.

[Orrex]

32. We have the answer

[Noel Kums]

40. I laughed. Message received.

[Blue_Tires]

36. The best part is middle class Trumpers have NO idea

How hard they'd also get fucked by not having FDIC and the CPA...

And I'm still waiting to hear some smug smartassed Trumper explain to the public why this is such a great thing for working class white folks...

[Blue Full Moon]

45. They are just worried about how they are

Going to screw over someone that they think that they are better than. Real Christian like. Obviously they have never read the words in red. But they think all they have to do is say I believe in Jesus then it magically makes whatever they do alright.

?si=ZsEWgbGlXGib82V2

[Initech]

48. A Great Depression will affect literally everybody, not just the chosen few.

And this one will be created by those stupid morons Elon and Vivek. Fuck them and their stupid DOGE agency.

[William Gustafson]

56. might be more like this....

[Initech]

47. Well, on the plus side, you can't use the military to deport people if you get rid of the Department Of Defense!

But seriously, fuck this wretched fucking administration and fuck their stupid warlord fantasies and the assholes who vote for this shit.

[louis-t]

52. I had this argument with a Libertarian moron a few years ago.

He was railing against any regulation concerning the food industry. I said "so if 3,000 people die because the food industry sells poisoned food....." Before the words were even out of my mouth, he was replying. "Then people won't buy that product anymore. See, the free market works." I said "How very Republican of you to be willing to kill 3,000 of your fellow citizens for your stupid ideology."

[kerry-is-my-prez]

57. Go to Credit Unions - they have their own form of insurance.

I’m going to call Fidelity tomorrow to find out what they’re going to do. I have most of my money in a money market fund there. I took it out of stocks.

[Farmer-Rick]

69. Yeah it's called The National Credit Union Administration (NCUA)

It runs almost identically to the FDIC.

I think the boobs in the Trump administration will realize they are the same thing? Maybe? But they are very stupid and it may give Americans a safe haven for their money.

But if the Trump idiots recind the laws that govern the FDIC in the 1933 bank act, that may take out the NCUA too. Not sure how they plan to destroy the FDIC.

[JCMach1]

59. You are not going to like the answer

Buy Bitcoin and keep it in a proprietary wallet (one you own the keys for).

[Mike 03]

66. I don't know whether this is reassuring or alarming, but

I had Bloomberg radio on all morning, more than four hours, and not once did anyone mention this threat to the FDIC, FDIC insurance, etc...

Either it is such a frightening idea that they are repressing it from discussion, or they think it is so unlikely as to be not worth talking about.

But which is it???

[Farmer-Rick]

70. I think they will try to change it in a hidden

And secretive manner so as to make it difficult to detect. They know a lot of people won't like getting rid of it. So, they won't discuss it like they never discussed doing away with pandemic funding and support right before the pandemic hit.

[John Farmer]

75. My pitchfork is really dull. I'd better go take care of that.

[Sneederbunk]

77. Hole up until '28.

[ysta]

79. At least the neoliberals will learn their lesson

[B.See]

81. And what lesson is that?

Btw welcome to DU.

[Nimble_Idea]

80. watch it all fucking burn

will be the greatest economic collapse seen in history.