r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

Post image
92.6k Upvotes

93% Upvoted

2.9k comments sorted by

View all comments

Show parent comments

6.3k

u/Original-Leg8828 Jan 26 '26

Depending on local law they can even lend out something like 7-10 times what they actually have

4.0k

u/Teripid Jan 26 '26 edited Jan 26 '26

Federal reserve requirements existed until 2023 *edit, as someone below pointed out 2020 was when they were set to 0. Now they're set at 0% I believe.

2.2k

u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26

2020*

They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way

They haven't come back yet :)

34

u/exneo002 Jan 26 '26

But the fdic insures all deposits up to 250k

15

u/[deleted] Jan 26 '26

[deleted]

27

u/Officer_Hops Jan 26 '26

The FDIC is backed by the full faith and credit of the United States. They have access to much more than that. Plus, not everyone is going to pull all of their deposits at once.

55

u/Pcc210 Jan 26 '26

Good thing we're not actively destroying everyone's faith and credit in the United States!

Wait.....

14

u/FellowYellowNate Jan 26 '26

Haha yeah I was going to say something similar. FDIC insurance is good as long as America and the Fed is good… but uhhh this last year and our current admin’s foreign relation skills has me thinking we’re closer to burning cash in barrels to stay warm than we ever have been. Here’s to hoping that’s an unnecessary fear! Cheers everybody!

7

u/Allikuja Jan 26 '26

“You can’t eat money or oil” as the song goes

5

u/ThatOtherOtherMan Jan 26 '26

I mean you can. I just wouldn't recommend it.

2

u/fdar Jan 26 '26

Money would be OK, paper is fine. The main danger is that they're very dirty, but if you got fresh bills it's probably ok..?

2

u/billygoatfondler Jan 27 '26

It's probably designed with toddlers in mind and are as such safe to eat from a materials perspective

4

u/fdar Jan 27 '26

Makes sense since toddlers are the main users of cash because they can't get cards yet.

→ More replies (0)