Mike’s Real Estate Show

The tales of bank “runs” (no, it wasn’t something they ate!-maybe junk “bonds”) but the runs we remember from “It’s a Wonderful Life” when the word gets out a bank may be facing insolvency–folks come and get their money! This is what happened with IndyMacBank. One of the big boys (4th largest), solid as shale in a hillside!!

So those who had Under $100,000, single account of $200,000 joint spousal,are o.k. as the FDIC and its vaunted “insured by” have come to the rescue. The problem? Many, Many folks, I belive the number was around 35% of depositers had MORE than the FDIC was chartered to cover in IndyMacBank! That’s not a good thing.

And what does the business media start harking on? They’re solvent, we have insurance, don’t take your money out if it fits the above guidelines for insurance. But I started thinking and had a big Ah-haaaaaaaaaa! We, the American People, BACK the FDIC! It’s our money bailing out those who loose their money at the failed bank. My advice? Take your money out and put it someplace where we won’t have to PAY YOU the insurnace!! Who do you think is paying this Insurance? Yes, that white bearded Uncle of ours. So get the lead out, or your money, and put it into a more solvent institution where we WON’T have to go further into debt as a country to bail out your bad deposits!! And if you hear your bank may be next–RUN!!! to your bank, yank the money and put it into treasuries or another safe insitituion and save your fellow citizens and our dear old Uncle Sam, the cost of covering your butt! Thank you!!