at what point does FDIC no longer matter?

[kenmoremmm]

say we hit 40% unemployment nationwide in april. chaos everywhere. violence. looting. etc.

do the banks see a run on money from consumers? is there a likely situation in which FDIC no longer works?

is hard cash a good thing in times like this potential situation? will the govt's ~$2T package and printing of money just hyperinflate things to the point that cash becomes significantly devalued?

[Askel]

If you're going to go down that paranoia rabbit hole, best stock up on assless chaps and chrome studded G-strings so you can rule the post apocalyptic wasteland. 

https://www.youtube.com/watch?v=i2gVXd7FzhQ
(probably NSFW) 

[wageslave23]

Calm the hell down.  China is already starting to get back up and running.  There won't be any hyperinflation, since every other government is also pumping more money into their economies.  Deflation is what you should be worried about if anything.  And why would the FDIC not be able to honor their guarantee?  As you said, the feds can print money.

[utaca]

If you're going to go down that paranoia rabbit hole, best stock up on assless chaps and chrome studded G-strings so you can rule the post apocalyptic wasteland. 

https://www.youtube.com/watch?v=i2gVXd7FzhQ
(probably NSFW)

And don't forgot loads and loads of toilet paper. Although I guess if we're going down this road, you could just take all your money out of the bank and use that for toilet paper... which back to OP, could cause a run on the banks!

[MilesTeg]

If you're going to go down that paranoia rabbit hole, best stock up on assless chaps and chrome studded G-strings so you can rule the post apocalyptic wasteland. 

https://www.youtube.com/watch?v=i2gVXd7FzhQ
(probably NSFW)

ALL chaps are assless!

/pet peave

[jim555]

The Fed can buy as many Treasuries as it wants.  Also the Mint could issue 1 trillion dollar coins and deposit the cash into the Treasury.  So they have the cash to back up the banks.  Whether the cash buys anything after doing this is another matter.

[frugalnacho]

If you're going to go down that paranoia rabbit hole, best stock up on assless chaps and chrome studded G-strings so you can rule the post apocalyptic wasteland. 

https://www.youtube.com/watch?v=i2gVXd7FzhQ
(probably NSFW)

ALL chaps are assless!

/pet peave

Aren't assed chaps just pants?

[John Galt incarnate!]

Whether the cash buys anything after doing this is another matter.

I had a similar thought.

I was going to post that FDIC-insured accounts are safe but  it wouldn't matter if a loaf of bread costs $999 trillion.

[markbike528CBX]

Whether the cash buys anything after doing this is another matter.

I had a similar thought.

I was going to post that FDIC-insured accounts are safe but  it wouldn't matter if a loaf of bread costs $999 trillion.

10 of these and you get change!  What's the problem?

Disclosure: I only have 10 Trillion dollars, so I guess I only get 1 crumb and then I'm screwed.

Edit, for crumb and redoo on image

[terran]

It seems to me that if the FDIC fails, so does the US Dollar. Better stock up on guns, ammo, canned goods and gold.

[Buffaloski Boris]

Well I don’t agree with the premises so let’s go through them.

First, 40% unemployment. Even if we’re in a longer nationwide quarantine then 12 weeks, I wouldn’t expect unemployment of that magnitude. And it would go down relatively quickly. Not back to where it was in February of course but down from its high.

Next, chaos, violence, and looting. All are possible. I think it unlikely to be widespread. You’ve heard about toilet paper and hand sanitizer flying off the shelves? What you aren’t hearing about so much are the long lines outside gun stores. ‘Nuff said on that topic.

As for bank runs. Again possible, but given that the US can print money till it runs out of paper or digits in computers, it’s not going to be lasting.

Folks need to calm down. This is going to suck mightily. But not “Mad Max meets The Big Short meets World War Z” kind of suck.

[atribecalledquest]

It seems to me that if the FDIC fails, so does the US Dollar. Better stock up on guns, ammo, canned goods and gold.

I would prefer a self sufficient catamaran with a water maker and solar panels and a ton of fishing and snorkeling gear.

Would head off to the south pacific and find the healthiest reefs.

[Dogastrophe]

If you're going to go down that paranoia rabbit hole, best stock up on assless chaps and chrome studded G-strings so you can rule the post apocalyptic wasteland. 

https://www.youtube.com/watch?v=i2gVXd7FzhQ
(probably NSFW)

ALL chaps are assless!

/pet peave

Yup, otherwise they are just pants. 

[sherr]

It seems to me that if the FDIC fails, so does the US Dollar. Better stock up on guns, ammo, canned goods and gold.

I would prefer a self sufficient catamaran with a water maker and solar panels and a ton of fishing and snorkeling gear.

Would head off to the south pacific and find the healthiest reefs.

Heh, are you intentionally becoming the protagonist from Waterworld or is that just a happy accident?

[Fire2025]

I love that the image on the one hundred trillion $ bill is just three rocks.  Irony, great sense of humor, both??

[ROF Expat]

I don't think you can ignore the possibility that covid might mutate into a brain-eating virus, turning a large portion of Americans into Zombies.  If that happens, the FDIC will probably be in trouble. 

[LetItGrow]

If you're going to go down that paranoia rabbit hole, best stock up on assless chaps and chrome studded G-strings so you can rule the post apocalyptic wasteland. 

https://www.youtube.com/watch?v=i2gVXd7FzhQ
(probably NSFW)

Please tell me that movie is actually good, and that scene does not reflect the general quality.

The point is good though, FDIC fails, has to mean the end of law and order.

I have a friend who used to be on the national boomerang team, probably should call him and start practicing.

[bigblock440]

If you're going to go down that paranoia rabbit hole, best stock up on assless chaps and chrome studded G-strings so you can rule the post apocalyptic wasteland. 

https://www.youtube.com/watch?v=i2gVXd7FzhQ
(probably NSFW)

Please tell me that movie is actually good, and that scene does not reflect the general quality.

The point is good though, FDIC fails, has to mean the end of law and order.

I have a friend who used to be on the national boomerang team, probably should call him and start practicing.

It's as good as any 40 year old motion picture.

[PDXTabs]

will the govt's ~$2T package and printing of money just hyperinflate things to the point that cash becomes significantly devalued?

What money printing package? You mean the package where they are going to borrow $2T?

Hyperinflation would render FDIC moot, but I don't have any reason to think that is about to happen. The $2T package may raise our borrowing costs slightly, but borrowing costs are at historic lows.

Things that might actually cause hyperinflation:

• Actually printing a bunch of money and giving it to real people who actually spend it.

I'm having a hard time coming up with any other scenarios. I do worry about a loss of faith in the US Government, but I'm not sure that would lead to hyperinflation. In fact, I think that it might lead to deflation if foreign nationals sell their real-estate and business holdings.

EDITed to add - if you actually have reason to believe that hyperinflation is coming, borrow as much money as you can and put it into international equities.

[kenmoremmm]

well there are two basic options: print or borrow.

some arguments i've heard said that printing would actually be better for a variety of reasons. it doesn't seem like that is the selected plan, at present.

besides, deficits only matter when (D) is in power.