Christopher S. Penn's Awaken Your Superhero - Latest Comments in What if the FDIC fails?

Re: What if the FDIC fails?

Mike — Tue, 07 Oct 2008 16:46:33 -0000

Okay, here it is, about 3 months later and the Dow is cratering and the S & P just went below 1000. Bank of America, after ingesting Merrill Lynch and Countrywide, has cut its dividend and has reported profits are off 68%, sending it's share price down. What's your take on the FDIC now ? Should I buy a safe?

Re: What if the FDIC fails?

Michael F. — Wed, 01 Oct 2008 19:46:14 -0000

Don't be so altruistic. We're the victims when we put our money into a bank and they can't give it back to us because they've mismanaged OUR money. They make their money using our money and sometimes they lose our money. So I don't think it's a matter of selfishness as much as it is a disappointment in the banking system.

Re: What if the FDIC fails?

Alain Wong — Tue, 15 Jul 2008 03:04:56 -0000

This is definitely a scary thought. But I think the government will not allow the FDIC to fail and merely print more dollars on an as needed basis. This of course will drive the dollar even lower. Gas at $8/gallon anyone?

Re: What if the FDIC fails?

Sean J Connolly — Sun, 13 Jul 2008 17:48:21 -0000

My God it seems that the whole world is falling apart, the bit I dont get is that people dont think banks and insurance places need money, taking monney out will not help. Just look at Northern Rock in the UK. people are selfish.

Re: What if the FDIC fails?

harnold — Sun, 13 Jul 2008 12:59:50 -0000

The FDIC is weak because the President's Administration is weak. Anything can happen.....And guess what, the banking oversight administration is weak. No U.S. Senator should be blamed for a run on the banks.......It's the administration and guess what....more of the same with McCain.

Re: What if the FDIC fails?

Hittman — Sun, 13 Jul 2008 11:22:52 -0000

The government will not allow the FDIC to fail. They routinely appropriate billions of dollars for all kinds of things, and would not allow a situation that would cause a run on the banks.

Re: What if the FDIC fails?

cspenn — Sun, 13 Jul 2008 10:00:05 -0000

Plan ahead, but prepare for that eventuality. If the FDIC fails, a bank run is likely, so better to be early in line than late,

Re: What if the FDIC fails?

Scott — Sun, 13 Jul 2008 09:44:27 -0000

"If the FDIC’s insurance fund drops below $10 billion, it would probably be a really good idea to start looking at someplace to store your money other than in a financial institution of the United States of America."

So, you're basically advising a bank run if FDIC looks like it's on shaky ground which will surely lead to much greater financial crisis.

Re: What if the FDIC fails?

cspenn — Sun, 13 Jul 2008 02:05:36 -0000

Fixed up, thanks!

Re: What if the FDIC fails?

TechnoMom — Sun, 13 Jul 2008 02:01:59 -0000

IndyMac isn’t going to be the first of the major financial institutions to fail.
I think you meant last, rather than first.

I didn't realize we were at that point. Thank you.

Re: What if the FDIC fails?

cspenn — Sun, 13 Jul 2008 01:53:36 -0000

Short term, I'd look to diversity. Cash in a few places, keep a close eye on events, but make sure whatever you store your money in, it's liquid and can be moved fast.

Longer term, I always defer to people who are smarter than me. Look at someone like Warren Buffett and where he's placing his bets - his track record is damn impressive, and I'd be a fool to try and outguess him.

Re: What if the FDIC fails?

alwillis — Sun, 13 Jul 2008 01:41:48 -0000

This is beginning to get really ugly. Here's the coverage from a financial blog I read: http://feeds.feedburner.com/~r/MishsGlobalEcono....

Re: What if the FDIC fails?

Chris Van Patten — Sun, 13 Jul 2008 01:31:57 -0000

Where would you suggest people keep there money out of curiosity? Foreign accounts? Keep it in cash? I'm starting to get worried about all these financial problems but I want to act rationally and safely.