“FDIC insurance covers all deposit accounts, including: Checking accounts, Savings accounts, Money market deposit accounts.Certificates of deposit. FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual funds, life insurance policies, annuities or securities.” https://www.fdic.gov/deposit/deposits/
FDIC was created in 1933, 75 years before the US Government covered the big banks across the board in 2008-9. 75 years before 1933 was 1858, when according to the US Supreme Court decision blacks were property, not citizens. 75 years before 1858 was 1782-3–the Treaty of Paris when Ben “Franklin nearly was successful in getting Britain to cede the Province of Quebec…but they then rejected the proposal.” -wikipedia.com
Bad designs/ideas are always around. We shouldn’t build on them.
Nomi Prins stated: “The government should not own or run what it does not understand and can’t therefore adequately manage or regulate.” –It Takes a Pillage, 2009, p. 213. By the same logic of Prins, government (the public) should not be covering/guaranteeing the financial sector and/or the parts thereof that operate by freewill and are not the government. Otherwise, we have a de facto socialist government. But the plan of the big banking forces from the start with US Treasurer Alex Hamilton was a monopoly central bank–which was authorized at first for 20 year periods by government. Mistake. Then the power elite, “the Establishment”, enlarged this design to include: no gold standard, a mainstream media and a government tied to themselves and their policies. Big big mess/catastrophe.
“In 1981 when Savings and Loans began to flounder, the US Congress decided to let the Savings and Loans try to speculate their way out of trouble. And though it meant, effectively, gambling with the government’s money, they were allowed to buy junk bonds.” -Michael Lewis: Liar’s Poker, see http://books.google.com/books?id=5NfZvS8gCeQC&pg=PA270&lpg=PA270&dq=michael+lewis+savings+and+loans+1981&source=bl&ots=F8j87wII61&sig=YAe1dVr4aRIUdeN6atrQ0zbc_BM&hl=en&sa=X&ei=Ij_pU-rHI5GBogScjICYCA&ved=0CCkQ6AEwAg#v=onepage&q=michael%20lewis%20savings%20and%20loans%201981&f=false