Top Economist: Americans Should Worry About Bank Runs

Top Economist: Americans Should Worry About Bank Runs

finance.yahoo.com

With the "financial storm of the century" hitting financial institutions, many Americans are worried about the safety of their bank deposits. While the FDIC insures individual accounts up to $100,000, the fund only has $50 Billion to insure over $1 Trillion in deposits. 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 reali

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The run on the banks has begun, it will only accelerate as more people find out it is happening.

finance.yahoo.com
(visit the link for the full news article)

Im starting to think these people are trying to cause hysteria and make people rush out and withdraw there money to destabilize the banking system on purpose for some sinister agenda.

Update: "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."

reply to post by Interestinggg

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.

Originally posted by Interestinggg
Im starting to think these people are trying to cause hysteria and make people rush out and withdraw there money to destabilize the banking system on purpose for some sinister agenda.

I'm starting to think this as well. Lindsey Williams even talked about this being the case about a month ago.