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As I have continued to say...Since 08 the FED and US govt have printed borrowed and spent in order to keep the US and Global economy afloat..Without that juicing the shyte would have hit the fan long ago.

To facilitate those approved policies the banks have loaded up on US Treasuries in particular at ever lower interest rates.. Now that interest rates are being raised the value of those low rate US Treasuries has fallen below the purchase price of those bonds..If a bank needs to raise liquidity in order to meet depositors withdrawals from their bank accounts they might need to sell their underwater bonds off creating a loss...which can make a bank insolvent.

Since virtually every bank in the world has scads of low interest rate bearing US Treasuries that are under water due to rising interest rates any loss of confidence in the banking system could cause a run on the banks which could collapse of the entire global banking system... That possible contagion is creating a fear of God moment.. No banks means no facilitation of the flow of cash which means no economy and a collapse of civilization the face of the chaos caused.

FDIC was instituted by FDR in 33 to restore confidence in the banking system so that people would keep their money in banks...FDIC guaranteed deposits...That is the ONLY REASON my dad and others kept their money in the banks after the 29 debacle. If a bank failed before FDIC you lost your money..

That is why Joey and the FED guaranteed that FDIC would stand good even though FDIC is woefully short of being able to cover all deposits... In 1990 that FDIC guarntee was implicitly given to deposits above the maximum amount of 250K...so that is nothing new... This is no bail out of the banks..it is a bailout out of the depositors in the banks which means the American people themsleves..