Does anyone know how much the FDIC currently has in reserve and the $ amount of all deposits in the US? The reason I'm asking is I heard a figure the other day and it was considerably less than this past September.
D
D
-
-
Dennis:
Here's an article I ran across.
There have also been several very interesting programs on NPR over the course of the past 2 weeks concerning the banking situation and FDIC.
One very intriguing article talked about how the FDIC is hiring as rapidly as possible and even bringing retired FDIC employess back into service. It makes me wonder if they are gearing up for some sort of nationalization of the banking system in the near future. Not saying that's a good thing or bad thing in and of itself - just an observation based on the facts."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
John,
Thank you for the article.
Not to put you on the spot, but I'd like to hear your thoughts (or anyone else's) on this situation. My wife and I have some serious concerns and have been trying to think ahead, possibly, keeping a small amount liquid, but putting the rest of the cash into real estate, no mortgages. Something I would not consider usually.
DComment
-
With respect to the banking system, I'm not concerned about its long-term viability. I still believe FDIC-insured funds are safe and will continue to be so. The US government will do whatever is necessary to keep the system viable long-term, but it may need to take some drastic short-term measures to achieve that goal. I'd certainly think twice about being an investor in banks right now, but not so worried about being an FDIC-insured depositor.
The economy as a whole is another issue. We could still be in the early stages of a contraction, and who knows what will deflate or how fast? I think it's difficult to value almost anything right now, from cars to houses to basic consumer goods. Once the downward spiral begins, people reset their expectations and hold off buying in the anticipation that prices will drop further. Things can get very ugly under those circumstances.
Even Warren Buffet is pessimistic at the moment, although on a positive note he adds that you never bet against the US economy in the long run. In his usual frank style, he did predict an economy in "shambles" for the next year or more.
I'd also be interested in what others have to say about this situation in general and the items we're discussing in particular..Last edited by JohnH; 03-01-2009, 07:55 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
-
I'll add one more link to the above, because it MAY all be part of the same puzzle. This is also a good article addressing the general issue of bank bailouts, and then about 2/'3 of the way through it is some information on David Beim's bombshell (Twin Peaks). I'd only recently discovered this chart, and I now wonder why it hadn't been on the radar screen before.
Beim points out that there have only been two times that total consumer debt equaled GDP. The most recent, of course, is 2008. The only time prior to this was 1929. Enough to make one stop & think.
Last edited by JohnH; 03-02-2009, 07:44 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
-
Article
John,
That article is quite an eye-opener. I wish there was some direction I/we could find for this mess. Quite a scary scenario is unfolding. I am thinking those Mossbergs BHoffman suggested way back are sounding powerful good
Thank you for posting those links the past couple of nights. If there are more you find, please post them or an email/PM.
DComment
-
Something else directly on point, which popped up today on Drudge:
"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
-
John
Yes, I saw two gals from a business network talking about this last night.
One thing I've not heard anyone talk about in this mortgage bailout is why they think we should bailout anyone who has used their homes like an ATM. And now a handout.
So many questions.
DComment
-
John
While in the midst of my "outburst", I forgot to thank you for posting the link to the story. I appreciate you paying close attention to it.
Thank you!
DComment
Comment