Comments on: FDIC Deposit Insurance And WaMu

By: Alan

Alan — Thu, 27 Aug 2009 15:37:51 +0000

Pinyo, you need to look up the Federal Reserve, because that exactly what they’ve been doing for decades!

By: Pinyo

Pinyo — Tue, 30 Sep 2008 03:54:51 +0000

@Doug — So far the FDIC did a good job of protecting our money with the transfer of WaMu and now Wachovia deposits. Hopefully, we will never see the day of the government simply printing more money just because they can. That would definitely be the end of the American economy and power.

By: Doug

Doug — Fri, 26 Sep 2008 04:23:29 +0000

The government through the FDIC will ensure that people get up to $100,000. But the money comes from the people. Here is something most people are not clear on but it is very critical to the understanding of our current situation. Most people think inflation is rising prices. This is not correct. Inflation is *an increase in the money supply*. Once the money supply has been increased, prices will begin to rise but it doesn’t happen right away, it takes time.

Thus, the inflation (an increase in the money supply) is caused by the Federal Reserve creating more money or credit out of thin air. If the FDIC runs out of money, the Fed will simply create more.

But that’s the problem. The people will end of paying for failed banks whether it is by direct taxation or by inflation.

The big discussion at the moment is the $700B bailout of the bankers on Wall Street who are hugely responsible for the mess we are in. I would like to see this plan scrapped completely and the money saved for the FDIC who will at least put it back in the hands of the people.

Bank runs are not caused because people overreact. They are caused because the bank only holds 10% of its deposits in cash. All bank in the USA are insolvent. That is the nature of the fractional reserve system.

If your bank looks like it may be suffering, you should most definitely move your money to one of the two strongest banks in your state. You can find current lists on the Internet.

By: Green Panda Treehouse | | Cleaning Up Bank Accounts And Renewing Our Rental Lease

Mon, 22 Sep 2008 15:46:07 +0000

[...] with where our money is and don’t have plan to change it. Our joint and individual banks are FDIC insured. Since our balance is less than $100,000, it’s covered.I did close an individual savings [...]

By: Pinyo

Pinyo — Fri, 19 Sep 2008 21:10:21 +0000

@Barbara — I agree with Bill about no moving the money. If WaMu fails and FDIC cannot give you your money, then we’ll have something else much scarier to worry about.

By: Bill

Bill — Fri, 19 Sep 2008 19:36:51 +0000

Everybody needs to calm down about this. There will be no need for standing in line for your money. If you’re really concerned about the wait, pull out enough money to cover your next bill. Put it somewhere else (hey, how about your mattress?), and forget about losing money.

There are only bank runs because people over-react. If you have good credit, you no doubt have access to cash. I know it’ll cost some money in advance fees, but there’s really no shortage of cash out there.

There is a shortage of patience.

WM is not going to fail. Even if it did, your money is safe. The US Treasury will not — it cannot afford to — let a bank deposit vaporize.

By: Barbara

Barbara — Fri, 19 Sep 2008 18:19:15 +0000

Should I do the same as Atlanta Lady and cash out my small savings ($2500) from Wamu? It is all I have right now, but I do not foresee needing immediate access to it.

By: atlanta lady

atlanta lady — Fri, 19 Sep 2008 15:44:11 +0000

Although I don’t have a lot of money right now, we just pulled out our saving for our wedding, my personal accounts as well as my sisters are in Wamu and we plan of pulling out because we don’t want to have to go through 5 days or so of uncertainty. I know the feds would take over or the FDIC would distribute the money, but I just don’t want to have to go through that process or having to stand in line for 3 days