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?
If it comes down from it the FDIC would need to borrow money from the government via it's line of credit at the Treasury. Since the government is run "by the people and for the people" and since the public pays taxes to the government, the FDIC would essentially be borrowing from the public.
So, in this case, the losses incurred from the uncollectible debts (bank defaults) will be paid by ordinary people directly. Now try to explain this to that guy who is ready to admit that I can't understand his explanations, but who still tries to make me explain to him how socializing debts (losses) works.
Dude, can you think logically for a second and stop being argumentative ? If you run a business and you needed an extra $1M. You borrowed $1M from your mom. Does it mean the debt is passed to your mom? You think this means your mom paid the debt?
The debt is on me (bank), and if I'm not able to return the debt (deposit), it will be passed to a guarantor on the debt (FDIC). If this guarantor is a state and can't pay the debt, it can either default or print more money (Fed), thus
indirectly (I hope I won't have to repeat this again) passing the debt on to the taxpayers (US citizens). I see no logic at all in what you say or ask. You could just as well bumble something incoherent with a clever face.
In this scenario you still are the debtor. What you don't seem to grasp is that the money is loaned not given for free