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
There's no FED printing money either for FDIC. That's something you made up
It is not relevant to the point discussed whether I would remain a debtor or not. What's important here is who will pay the debts and with what means. Regarding the FED not printing money directly for the FDIC, it is not relevant here either. If it ever comes to choosing between default and printing more money, the FDIC will get all the money they would need, whether through the Treasury or directly from the FED, but this wouldn't change anything. You're just trying to cling to insignificant details and obfuscate the issue (that debts will be socialized).
What do you mean its not relevant? Thats the entire topic we are discussing. "Default" means can't pay the loan. Has FDIC borrowed any money? NO. The correct term you want is "insolvent"
Insolvency means the inability of a debtor to pay their debt. And now find the difference with your "default means can't pay the loan". And stop making value judgments, they speak more about you than me.
"Default" essentially means a debtor has not paid a debt which he or she is required to have paid.
"Insolvency" means that a debtor is unable to pay his or her debts. --> In accounting terms it means liabilities exceed assets
If liabilities of FDIC exceed its assets then FDIC is "insolvent" --> This is what we are talking about. Run on bank deposits that exceed the FDIC fund. We are not talking about FDIC defaulting on a loan. The correct term is "insolvent"
Why are you intentionally continuing to misinterpret my words?
As you again didn't notice, I was talking about bank defaults, and once again you ascribe to me what I didn't say. Default is the end result of insolvency, but this won't help you, since we are talking about socializing debts and not about the semantic differences between default and insolvency. Because you won't get it right at once, I repeat again,
we are talking about socializing debts.
Also, since you took to nitpicking, I should point out that what you said before about default ("default means can't pay the loan") is essentially the same what you now say about insolvency ("insolvency means that a debtor is unable to pay his or her debts").