I don’t like to talk about politics. But when things having to do with my money directly affect me, it’s time to get talking.
I am sure you along with everyone else has heard all there is to hear about the failing economy lately. All of the politics of it and such do not interest me. What interests me is the money portion, specifically bank closures/failures. The FDIC is what insures your money up to 100,000 in each of your accounts. I had a thought though. If the banks continue to close and get bailed out by the government, HOW MUCH MONEY DOES THE FDIC ACTUALLY HAVE?
The answer was frightening. According to the FDIC 2007 Annual Report, the FDIC has only $53 billion to cover losses.
Sure, that’s a lot of money.
Then I found out that they have to cover 2.3 TRILLION DOLLARS in debts if the current banks on the watch list (banks who are very likely to fall in the next year) collapse. That means they have to come up with 950 billion dollars to cover their losses.
Considering the government is nearly broke, a simple guy like me can easily deduce that if your money is left in a bank like WaMu, or a similar large institution that you need to pull it out now to ensure you don’t plain LOSE it.
This is going to turn into a depression fast people - luckily folks like us can survive online and have built stockpiles to carry us through a few years if need be.
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