Top Economist: Americans Should Worry About Bank Deposits if Congress Doesn't Act

[Scamp]

http://finance.yahoo.com/tech-ticker/article/56994/Top-Economist-Americans-Should-Worry-About-Bank-D...

"With the "financial storm of the century" hitting financial institutions, many Americans are worried about the safety of their bank deposits....

"The banking system is safe and sound," Treasury Secretary Hank Paulson declared at a mid-afternoon press conference Monday, seeking to ameliorate such concerns.

"Nothing is more important than the stability and orderliness of our financial markets [and] regulators remain vigilant," Paulson continued. "We're working through a difficult period in our financial markets right now as we work of some of the past excesses, but the American people can remain confident in the soundness and resilience of our financial system." 

But Americans are justified to be worried, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a "slow-motion run on retail banks" occurring nationwide.

That "run" could accelerate as people realize the FDIC fund has about $50 billion to "insure" about $1 trillion in assets at the nation's financial institutions, says Roubini. "They're going to run out of money" unless Congress acts soon to recapitalize the FDIC...."

[haulingthescoreup]

Pretty dern happy to be with USAA and with our local CU at the moment.

[Anonymous]

Mu CU is not on the WATCH list - it your bank?

You will never know..... until it hits the fan.

I still expect 100 banks to close by the end of the year.

[haulingthescoreup]

Luckily, we have no money to speak of, and what little there is is spread among 4 different institutions.

Is there a published watch list for CU's now?

[Scamp]

I gotta admit - the spot under my mattress is looking safer and more attractive every day as a 'savings acct.'.

I don't have much, but what little I have is split between a bank savings acct. and my PenFed share savings acct.  The bank so far seems to have been fairly conservative and sensible and doesn't seem to be setting off any alarm bells anywhere...fingers crossed that it stays that way....

[MattH]

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@scapegrace13 wrote:

I gotta admit - the spot under my mattress is looking safer and more attractive every day as a 'savings acct.'.

I don't have much, but what little I have is split between a bank savings acct. and my PenFed share savings acct. The bank so far seems to have been fairly conservative and sensible and doesn't seem to be setting off any alarm bells anywhere...fingers crossed that it stays that way....

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I saw an story somewhere a few days ago, this old guy's family is moving him out of his somewhat run down house when the old guy takes a crowbar to one of the bedroom floorboards to reveal coins, bills, gold, jewelry, all of which added up to several million dollars. He'd seen banks fail in the Great Depression so ever after he distrusted them and instead stashed it all under the floor of his house. He'd always told his kids he had a fortune, but they'd never believed him because he lived so modestly.