Haven't I already explained it that the Fed would print money for the FDIC after Congress would pass a corresponding act in case there is a need for such a legislation? Where did you get that the FDIC would be borrowing from the public? Please show me that part. Debts incur losses (if not paid indeed), they are just the two sides of the same coin. And if loss refers to income (according to your words), what the heck you began talking about losses when we were talking about debts?
Theres no protocol for FDIC getting money from the Fed. FDIC would get money from Treasury. I said this like 3 times already. You are explaining something you made up and does not reflect any factual evidence. Just doesn't work how you imagine. Accept it or go on being ignorant
If FDIC borrows the money the debt isn't "socialized" because its the FDIC that holds the debt. You are claiming that FDIC borrows money and taxpayers has to repay the debt. WRONG. FDIC repays the debt. Theres no way for them to pass it off to taxpayers. They can pass it on to banks by raising premiums then banks can pass onto bank customers by raising fees.
If you explained how I just did then you can argue the concept "privatized profits, socialized losses" NOT "socialized debts". You can't pass off your debts like that. You can default or you can restructure
Debt is not losses. Debt is an asset for lender and liability for borrower. If you borrow $1M to buy a house you didn't lose $1M. You have a liability. If the house falls below your buying price then you lose money. You can't even get simple concepts right