There are $20 trillion in USA deposits, and the FDIC cannot insure a significant fraction much less all of it. Half of all banks are already upside down on assets. The Federal balance sheet has run out of space to fund Buffett's endless irrational optimism.

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[–]UncleWillard56 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

Regular folks that keep over $250K will lose it all, but corporations that have all their eggs in one basket will get a bailout, in other words.

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    [–]UncleWillard56 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

    Well, any bank that sees issues like Silicon Valley and First Republic will simply be taken over by the government and sold to a bigger bank. It's a consolidation of banking under the biggest and most powerful. Either a buy-out or a bailout. I think regular folks who have more than $250K+ aren't in any danger as yet. Not even sure consolidation is good or bad. If banks are too big to fail, then you don't ever have to worry about the FDIC.