Comments on: FDIC Bank Insurance Teetering; Is The FDIC Deposit Fund A ‘Myth’ And Have Americans Become Too Complacent? http://www.brokeass-student.com/fdic-bank-insurance-teetering-is-the-fdic-deposit-fund-a-myth-and-have-americans-become-too-complacent/ ... where my idea of splurging is feeding my cat Fancy Feast. As a full-time student with a limited income stream, follow my journey in obtaining financial awareness and prosperity Wed, 01 Feb 2012 07:45:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tenant Loan http://www.brokeass-student.com/fdic-bank-insurance-teetering-is-the-fdic-deposit-fund-a-myth-and-have-americans-become-too-complacent/comment-page-1/#comment-140978 Tenant Loan Thu, 26 Aug 2010 06:50:09 +0000 http://www.brokeass-student.com/fdic-bank-insurance-teetering-is-the-fdic-deposit-fund-a-myth-and-have-americans-become-too-complacent/#comment-140978 Great Work, Really Very Informative Post. Great Work, Really Very Informative Post.

]]> By: WP@NetworthCanada.org http://www.brokeass-student.com/fdic-bank-insurance-teetering-is-the-fdic-deposit-fund-a-myth-and-have-americans-become-too-complacent/comment-page-1/#comment-51137 WP@NetworthCanada.org Thu, 24 Jul 2008 02:09:08 +0000 http://www.brokeass-student.com/fdic-bank-insurance-teetering-is-the-fdic-deposit-fund-a-myth-and-have-americans-become-too-complacent/#comment-51137 I really do believe that many people have become too complacent with their finances. Occasionally you hear of an old woman with thousands of dollars stuffed between her mattresses because she just doesn't trust banks. It sounds a little silly in this day and age, doesn't it? Maybe this credit crisis is showing us that there is a little virtue to what those people have been doing all these years. I really can't say for sure whether FDIC isurance is a myth or not, but I do believe that everything has its tipping point. I am sure that the FDIC will be able to support at least a few bank failures, but there will always be the straw that breaks the camel's back. If too many banks fail, the government will not be willing to put unlimited funds towards this, and eventually it will reach a breaking point. Our banking system, which has no reserve ratio, is fragile. All that it took to bring down the venerable Bear Stearns was a rumour. It caused a run on the bank, and Bear wasn't able to fulfill its obligations towards its depositors. Personally, I am really glad that I deal with a Canadian bank, that up until this point has denied any participation in the sub prime mess. It leads me to believe that my life's savings are a little safer. This really goes to show the things that happen when the unabated greed by lenders and lack of financial knowledge of the general public comes home to roost. I really do believe that many people have become too complacent with their finances. Occasionally you hear of an old woman with thousands of dollars stuffed between her mattresses because she just doesn’t trust banks. It sounds a little silly in this day and age, doesn’t it? Maybe this credit crisis is showing us that there is a little virtue to what those people have been doing all these years.

I really can’t say for sure whether FDIC isurance is a myth or not, but I do believe that everything has its tipping point. I am sure that the FDIC will be able to support at least a few bank failures, but there will always be the straw that breaks the camel’s back. If too many banks fail, the government will not be willing to put unlimited funds towards this, and eventually it will reach a breaking point.

Our banking system, which has no reserve ratio, is fragile. All that it took to bring down the venerable Bear Stearns was a rumour. It caused a run on the bank, and Bear wasn’t able to fulfill its obligations towards its depositors.

Personally, I am really glad that I deal with a Canadian bank, that up until this point has denied any participation in the sub prime mess. It leads me to believe that my life’s savings are a little safer. This really goes to show the things that happen when the unabated greed by lenders and lack of financial knowledge of the general public comes home to roost.

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