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Why not invest it in something that will hold value like property that has running water and is farmable? (is that even a word?) Seriously, even gold will be worthless in the short run.
Well, what about smaller local banks?
Are they safer than the large mega financial institutions.
Perhaps more to the point for TBTF, if a SIFI does fail I have little doubt that private investors will in fact bear the losses--even if this leads to an outcome that is messier and more costly to society than we would ideally like. Dodd-Frank is very clear in saying that the Federal Reserve and other regulators cannot use their emergency authorities to bail out an individual failing institution. And as a member of the Board, I am committed to following both the letter and the spirit of the law.
Originally posted by PuterMan
reply to post by Templeton
Try Credit Unions.
They are subject to regulation but are not likely to fail (we hope)
Originally posted by MidnightTide
reply to post by mbkennel
The banks are so overleveraged when they go under, they are taking the entire system down with it. As to the FDIC, do you think they have enough cash to handle a banking collapse? I wouldn't count on that at all.edit on 23-4-2013 by MidnightTide because: (no reason given)
it is the sense of the Congress that it should reaffirm that deposits up to the statutorily prescribed amount in federally insured depository institutions are backed by the full faith and credit of the United State
Originally posted by blackangel13
i think the most frightening thing about all of this is, what do you do? if something like this happens most likely the value of the dollar will also crash, so what good is it having your money in a credit union or even in cold hard cash under your mattress?
First, and most obviously, one goal is to get to the point where all market participants understand with certainty that if a large SIFI were to fail, the losses would fall on its shareholders and creditors, and taxpayers would have no exposure.
As to the FDIC, do you think they have enough cash to handle a banking collapse?
A private investor is a shareholder and bondholder of the bank, not a depositor. Depositors have primary claims in bankruptcy, then bondholders, then stockholders.
.....within a few days in Iceland, the Icelandic Depositors' and Investors' Guarantee Fund (Tryggingarsjóður) had already been drained from capital reserves, and had no money left to repay the legally required deposit guarantees to the foreign Landsbanki customers who had lost all their savings in the Icesave branch of the bank
Lets calm down and start denying ignorance. In particular, go to the original source and not hysterical fear-mongers looking for blog hits