What is Digg?202 Comments
- chocobomog, on 08/02/2008, -11/+153Yes. That was an easy question.
8 banks have closed this year. 8 banks out of the 8,494 the FDIC insures. In comparison, 12 banks closed in 2002 and I'm sure we all remember the terrible depression and near collapse of the economy of that year.
http://www.fdic.gov/bank/individual/failed/banklis ...
You want to know what causes economic recessions? A bank run:
http://en.wikipedia.org/wiki/Bank_run
By posting hyperbolic doom and gloom threads like this you are creating your own self-fulfilling prophecy. - StingingNettle, on 08/02/2008, -7/+81And again announced at the end of the day on a Friday.
- avengingturnip, on 08/02/2008, -8/+68Move along folks. Nothing to see here. Diggnorance is bliss.
- graiz, on 08/02/2008, -4/+63If you have more then 100k in one bank it might be wise to split it between several banks. Along the lines of not putting all your nest eggs in one basket.
- relic180, on 08/02/2008, -0/+44Backyard burial is defintately the way to go.
By the way, where do you live? - LoadStar, on 08/02/2008, -4/+44I'd love to digg you up more than once.
You want "doom and gloom" - In 1992, there were 181 (!) failed banks. Someone let me know when we come anywhere CLOSE to hitting this rate. Until then, I'll be over here not worrying about it. - sockpuppets, on 08/02/2008, -0/+38I am confident my $1.83 balance is federally insured should my bank become insolvent. I look forward to using it to help pay for other people's mortgages that they couldn't afford in the first place.
- JDenigma, on 08/02/2008, -4/+38If you think that ignorance is bad on here, just imagine what it's like amongst people who aren't even Internet news junkies like the Digg membership. If you even mention Federal Reserve to them and start pointing to it as a source of our problems, they'll look at you like you're nuts.
- MorganMghee, on 08/02/2008, -1/+34gold yes, backyard no.
- inactive, on 08/02/2008, -5/+36It would be even wiser to buy gold and bury it in the backyard. The dollar's decline is accelerating.
- Peko, on 08/02/2008, -1/+32I humbly suggest burying it on a tropical island underneath a large X.
Yarr. - unknownpoltroon, on 08/02/2008, -3/+27They ALWAYS do that, its standard procedure. That way they can have it cleaned up by monday morning. That is NOT part of some gvt conspiracy.
/The fact that its a tiny line on CNN business might be. - inactive, on 08/02/2008, -15/+38Here we go folks!! It won't be long at all now.
- inactive, on 08/02/2008, -1/+23Don't put it in a bank safe deposit box. Better to find a nice safe place.
- koob, on 08/02/2008, -8/+29If stories like these keep getting popular and people keep running to the bank and trying to take out all their money, no we aren't safe. Panics cause bank failures.
- jackal42, on 08/02/2008, -1/+21Alcohol is the best currency
- ancalagon73, on 08/02/2008, -0/+18Build a money vault like Scrooge McDuck.
- rockstar1o9, on 08/02/2008, -1/+17Even so, you're still better spreading $100k around multiple banks because the chances of 2 or more of them failing is far less likely so you're still good on your $100k insured by the FDIC.
- ScottMitchell, on 08/02/2008, -0/+15I don't think most millionaires have $1,000,000+ sitting in bank deposits. Rather, it's invested, either as T-bills or muni bonds or in the stock market or bond market or real estate, or in a business venture, etc.
- gcnaddict, on 08/02/2008, -9/+23STOP ***** RUNNING ON THE BANKS. ljrdxyh (nice username there), stop trying to get people panicked. You're making things worse.
http://en.wikipedia.org/wiki/Bank_run
edit: oops, chocobomog beat me to it, but that's the link in case you fast scrollers missed it. - crazymonkey1, on 08/02/2008, -0/+13As long as I'm nowhere near a casino, my money is safe.
- MorganMghee, on 08/02/2008, -4/+17So far, greedy banks that bought into the subprime mortgage market are the ones being affected. The one McCain's son was working for had only opened it's doors in '07, seemed almost to be for the sole purpose of taking advantage of that market. In any case, funds are insured up to the limit, partially over the limit, and you knew that when you deposited your funds there.
- relic180, on 08/02/2008, -0/+11Panics don't help, but these greedy bank ***** suckers set the stage for an epic decline all by themselves.
- King0007, on 08/02/2008, -1/+12Best movie that shows what we are up against...
http://video.google.com/videoplay?docid=-905047436 ... - inactive, on 08/02/2008, -3/+14Yes because golds value isnt over inflated right now...
Gotta love the diggiots, buy high sell low. - CobaltBlue, on 08/02/2008, -0/+11Swiss franc is only 20% backed by gold.
- King0007, on 08/02/2008, -0/+10Okay...Inflation is at 9 to 12%. Gas and Food costs up 50 to 70% from last year. The dollar has depreciated over 40% since 2002. House prices are falling and will continue to fall for the next 2 years. Hmmm? Recovery? Where?
Oh I forgot....Deficit at $9.6 TRILLION. $9,600,000,000,000 ...and by the way, the new legislation that just passed raises this by another $800,000,000,000 so it will be at $10,400,000,000,000 soon. - bdbr, on 08/02/2008, -2/+12This is a tiny, 6-branch bank. Banks go in & out of business all the time; the FDIC has a long list, and it started long before Diggers bitched about the economy. This isn't any indication of anything.
- cquinnd, on 08/02/2008, -0/+10http://www.fdic.gov/deposit/deposits/deposit/faqs/ ...
#9. Can insurance coverage be increased by depositing funds with different insured banks?
Deposits with each FDIC-insured bank are insured separately from any deposits held at another insured bank... - Y0tsuya, on 08/02/2008, -1/+10If your money is in a brokerage acct it's insured to $500K.
- Barackalypse, on 08/02/2008, -0/+9No, you money isn't safe, so long as the Federal Reserve exists and devalues it with stupidly low interest rates and Congress and the President deficit spend to the tune of hundreds of billions of dollars a year. Oh, you mean safe if an insured bank goes under, of course its safe, they can print as much money as they need to pay you back your $100,000 per account. I doubt anyone will notice a couple extra billion amongst the trillions we already waste.
- Peko, on 08/02/2008, -1/+10You're completely right koob. All the cash in the banks is safe and nobody at all should go to the bank and get all their cash out.
Oh! I uh.. have to step out for a sec to uhm, pick up some dry cleaning. I'll be, uh, right back. [run run run car door slam tirescreech] - z28com, on 08/02/2008, -0/+9That $9.6 trillion isn't part of me, pal. Don't blame us people who had absolutely NO SAY how the money is borrowed. The public should have a vote to where the money is and instead, it's all left in the hands of a few people that we have zero control over.
I want to move out of the US so ***** bad. I can't stand living here anymore. I just want to get on a plane and never come back. This place sucks ass. Living here is just like living in a 3rd world country now. For the bare necessities you need so much money to break even. The days of $300/mo. apartments in good neighborhoods are long gone. - girwen, on 08/02/2008, -10/+19I don't worry. I'm a rocket scientist. Nobody with less education could figure it out. I've got $95,000 in each of a dozen banks.
hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha
hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha - cquinnd, on 08/02/2008, -0/+8Wrong, girwen is covered for each bank that has a seperate FDIC insurance certificate for managing accounts.
If those dozen banks consolidate, then there might be trouble. - sodade, on 08/02/2008, -0/+7Umm, I think you mean find a stable currency and dump your savings there. I'm thinking the Norwegian Kroner is a good bet.
- siszam, on 08/02/2008, -0/+7Microchp, people told me I was stupid for buying silver at $7.00. Now I'm brilliant. If you never jump in you never profit.
- MrWhite7, on 08/02/2008, -0/+7I'm amused by the comfort people get from the concept of FDIC insurance... What good's your dollar when it's lost 90% of its value?
- Cryptocracy, on 08/17/2008, -5/+12so everyone should just STFU and let the banksters rip us all off? these banks failed before any panic.
- mfc5200, on 08/02/2008, -0/+7No,
A Certificate of Deposit (CD) is "a system where loaning and borrowing of money is allowed". I deposit my excess savings say $10,000 with the condition that I wont touch it for say 1 year. That money is lent out to people who have a need for it. They can use it to start a business, buy a house, w/e. But then they have to pay it back after 1 year. During that entire process, the money supply is never expanded, because I can't use that money while they are. (of course this example is a gross over simplification).
The way it is now though, is that I deposit $10,000, and the bank then goes out and lends $100,000 on that $10,000. I, along with 10 other people (the people who took the loans), all have access to spend that money as though it is sitting there. Of course this works most of the time, but every once in a while such as NOW, ***** goes bad. The government of course enjoys propping this system up (via la Federal Reserve, its reserve window, and the FDIC), at the expense of our currency, because it is very profitable for banks.
This isn't a "conspiracy" Alex Jones theory. (I dont even like that tard). Its just a fact of life today. - AlwaysAwake, on 08/02/2008, -15/+21The FDIC will only issue checks for worthless $$, if the fiat Federal Reserve Note Dollars crash at the same time as the banks. Think about that for awhile, before you rush to get Swiss Francs, the only non-fractional reserve currency, which has never been "inflated".
- Derelict267, on 08/02/2008, -2/+8We should have listened to the clown.
- mardraum, on 08/02/2008, -5/+11I love you.
- inactive, on 08/02/2008, -2/+8Your money is there. It's just worth less each day than the one before...
- inactive, on 08/02/2008, -0/+6There are several more that are going to be announced in a couple more weeks. No idea if it will be on a Friday. I will suggest to pick a different day. ;-P There are several more after that but I don't know when they are going to pull the trigger. Most of them are small. You also probably won't find anything in he media regarding what BofA did to its CD holders recently. For those paying attention, if you see a deal that seems too good to be true, don't fall for it, or at least read the fine print.
It isn't just the banking industry this is hitting either. Banks are still giving loans to big contracting firms and then pulling the rug out from under them when it comes time to get their money (after they have completed the work). I know some in the banking sector that suggest the whole thing is coming unraveled, but to repeat it makes me feel like I am yelling "The sky is falling!"... heh. So anyway, if you are a contractor, get your cash up front, no matter how big the project is. - whorunbartertwn, on 08/03/2008, -1/+7Gotta love even more how determined doom & gloomers will ignore facts thrown in their face that show how ridiculous their wailings are.
- CobaltBlue, on 08/02/2008, -1/+7You are incorrect. All accounts are insured separately. So you can be insured up to $100,000 at each bank where you have an account.
- diemunkiesdie, on 08/02/2008, -2/+8Actually FDIC had barely a dent in it's reserve when IndyMac went under.
- br0ken1128, on 08/02/2008, -0/+6Koob has a point though folks .. the banks collapse when people make a run on them and start pulling their funds out in mass .. That's what happened with IndyMac .. Schumer on CNN yells for everyone to go pull their money from IndyMac .. people rushed in and the bank went down ..
I'm not saying IndyMac wouldn't have failed had people not ran on the bank, but it probably wouldn't have fell so quickly .. and maybe would have had a chance..
It is scary .. I remember checking this list on the fdic site and only seeing one bank a couple of weeks ago .. now look
http://www4.fdic.gov/dip/index.asp .. now the dropdown has 3 ..
As tempting as it is for me to go pull my money out.. and while some may call me stupid for not doing so, I've got less than 100k in there and I'm going to try to have as much faith as I can that the FDIC has me covered.. the economy really is faith based, if you freak out and pull out then the walls start crumbling down ..
I may be panhandling in my future :) - MikeFallopian, on 08/02/2008, -5/+10Wow, 8 fully-insured small time banks fail in 7 months and everyone thinks the sky is falling. Meanwhile the stock markets are doing fine, oil is dropping, the economy grew 0.9% in Q1 and 1.9% in Q2 and unemployment is not nearly as bad as it could be. A year from now we will be in a full-fledged recovery - good job, Bernanke.
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