What would be happening now if the FDIC didn't exist?

[skipos]

I never hear anyone talk about FDIC insurance, but it would seem to be very relevant right now.

[Zynx]

1. There would be no confidence in the solvency of the banks and virtually all of them would have

failed. There's a very good reason FDR put it in place.

[TechBear_Seattle]

2. Things would be very, very bad for most people

The Federal Deposit Insurance Corporation was created in the aftermath of the Great Crash of 1929 to protect the average person. At that time, the massive collapse of banks wiped out the savings of millions of people who were not invested in the stock market. The insurance also helps to prevent bank runs, as the collapse of a bank does not immediately wipe out people's accounts.

You can read more at the Wikipedia article for the FDIC

[Frosty1]

3. How Safe Is My FDIC-Insured Bank Account?

http://www.chrismartenson.com/how-safe-my-fdic-insured-bank-account

How Safe Is My FDIC-Insured Bank Account?
04/09/2008

Your bank account may not be as safe as you think (or hope). Taking a deeper look at the legal details and the financial depth of the FDIC reveals several troubling details that call into question how the FDIC would fare during a true banking crisis.
The US is coming out of a period of unusually low banking stress and failures. Since it is typical human behavior to let one’s guard down during tranquil periods, we might legitimately ask if this