Monday, September 15, 2008
If Mr. Potter offers you 50 cents on the dollar, please don't take it
by Anonymous at 5:27 PM
If you have $100,000 or less stored away in a bank account, the FDIC will insure every penny of it. I think this was a program that was put in place back in the 1940's to give the American public the perception that if they put their money in a bank, some yahoo who works at that bank wouldn't lose it all with a poor investment like dying cattle or something. It was a good program then, and is a good program now.
Ah but guess what? That FDIC fund has roughly $50 billion to insure about $1 trillion in assets.
Just to be clear, $1 trillion > $50 billion.
Uh oh.
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They'll never close us up today......5-4-3-2-1 BINGO!
