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Ben Franklin
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Posted: Wed Oct 1st, 2008 03:52 pm |
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Hartlyboy wrote: When is the gummint going to give me $250,000 to put in the bank so it can be safe? Just how many people are going to now feel secure because their deposits are insured thusly? Those are the rich people we all love to hate , no?
I agree its nothing more than protecting the rich. Making them feel better so they dont pull out all that money. Cos thats the money the banks actually lend
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2centsworth
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Posted: Wed Oct 1st, 2008 02:41 pm |
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Terrance wrote: I listened to the suggestion about raising the FDIC insurance limit to 250K today and had two thoughts. One - I think it is a good idea. Two - It has nothing to do with small business owners as was stated.
The money we put in the bank should be secure at any level. By raising the limit, we are reinforcing the idea that bank deposits are secure. It doesn't matter if the average person will ever reach the limit. The higher the limit, the more secure it appears.
Apparently there have been several runs on banks. This is never good. Raising the limit might lessen the amount of angst people are feeling. There is no need for people to take insured money out of the bank.
That's it. That's about all I have to contribute today.
Actually it has a lot to with small business. The avg bank account balance in this country is $5,500. Under current regulations a couple can insure up to $500,000 in one bank if structured properly. People with that kind of cash know it because they get proper advice.
The bottom line is consumer confidence. The more confidence the average Joe has in the system, the less vulnerable it will be.
And Fred is correct. The more cash the banks have the more likely they will be to lend it to those who need it.
Remember what a recession really is. NO CASH. The current short term lending environment is horrible. Businesses need money to operate. If we don't fix this soon it will all grind to a halt.
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Fred
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Posted: Wed Oct 1st, 2008 01:02 pm |
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I think it is a bit more than that, as well. It also provides a means that the banks CAN attract more cash from those who have that much money, which gives them more money.
It is a bit more significant then I thought, at first.
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Terrance
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Posted: Wed Oct 1st, 2008 11:21 am |
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Hartlyboy wrote: When is the gummint going to give me $250,000 to put in the bank so it can be safe? Just how many people are going to now feel secure because their deposits are insured thusly? Those are the rich people we all love to hate , no?
The gummit ain't never gonna give you $250,000. That's not my point.
First, I am against the bail out.
Second, I think that independent of the bail out, it would be a good idea to reassure people that their money is safe in the bank. That might prevent bank runs. Bank runs are panics and they don't help anyone. Raising the limit would do that. The higher the limit, the more secure the money appears.
If the FDIC ultimately cannot come through on its insurance, then its all over. Money would be worthless.
There are a surprising number of people who have more than $100,000 in the bank. Many are retirees. There are also many rich people who have way more than that. If those people panic, we all go down the tubes. Some of them are panicking now.
Just a simple thought; not an earth shattering epiphany.
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Lavitakus
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Posted: Wed Oct 1st, 2008 04:23 am |
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| As far as the raise in insurance, all that really means is you spread your money throughout 7 banks instead of 10.
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Lavitakus
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Posted: Wed Oct 1st, 2008 04:21 am |
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| Just bait for the trap for the Democrratic party really.Also a good implication that they have no clue what to do now. I'm still a fan of let this be a lesson on how to do business and bailing bad business practices out just just promotes more bad business.I think the Federal government comes out on top bigtime if any rescue at all happens.
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Hartlyboy
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Posted: Wed Oct 1st, 2008 03:41 am |
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| When is the gummint going to give me $250,000 to put in the bank so it can be safe? Just how many people are going to now feel secure because their deposits are insured thusly? Those are the rich people we all love to hate , no?
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Playing the Game
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Posted: Wed Oct 1st, 2008 02:07 am |
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| gnite.
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Terrance
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Posted: Wed Oct 1st, 2008 01:58 am |
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I listened to the suggestion about raising the FDIC insurance limit to 250K today and had two thoughts. One - I think it is a good idea. Two - It has nothing to do with small business owners as was stated.
The money we put in the bank should be secure at any level. By raising the limit, we are reinforcing the idea that bank deposits are secure. It doesn't matter if the average person will ever reach the limit. The higher the limit, the more secure it appears.
Apparently there have been several runs on banks. This is never good. Raising the limit might lessen the amount of angst people are feeling. There is no need for people to take insured money out of the bank.
That's it. That's about all I have to contribute today.
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