So I was at the bank today...

[farmmilkmama]

...and I saw a sign on the window that said the FDIC now upped their insured or guaranteed amount to $250,000, temporarily until the end part of 2009.

Um, what? How, with everything going on, can they RAISE the amount?

It was suggested to me today that the only reason they said this was to keep people from feeling the need to pull all their money out of the banks.

I figured all the lovely folks here would have a comment or two to add...

[fancyfowl]

That took effect a few months ago. But they only need to worry abot the $250 part for me, and that only until 3 days after I get my SS check.

[gump]

...and I saw a sign on the window that said the FDIC now upped their insured or guaranteed amount to $250,000, temporarily until the end part of 2009.

Um, what? How, with everything going on, can they RAISE the amount?

It was suggested to me today that the only reason they said this was to keep people from feeling the need to pull all their money out of the banks.

I figured all the lovely folks here would have a comment or two to add...

They can raise the amount so long as the FDIC (who would be liable) can cover the $250k. And yes, they changed it so there wouldn't be a run on more banks.

[farmmilkmama]

I guess its all just very confusing to me how it works. Someone had told me once how the FDIC covering any certain amount of money was just a joke anyway because if the banks were to go under, they have like 99 years or something to repay you what you lost. So, does it really matter?

[gump]

I'm not sure what the payback terms are but what is really stupid is the fact that the $250k limit affects but a few - the very wealthy. Most people don't have that kind of dough sitting in a bank account.

So in order to cover that increased limit, banks have to pay more into the pool. FDIC pays the $ out but the banks fund it. Now we have struggling banks that have to pay more $ in and have to come up with the $ by increasing consumer/business banking fees/etc.

Anyone notice what the ATM fees are these days even if you don't pay 'em? >$3 a transaction at a non-customer bank. Anyone notice the charges for paper checks?

I know, that doesn't seem to make a lot of sense right? We give the govt-->banks our tax dollar money via IOUs, we make the banks pay more into the FDIC, the banks increase costs on us and the $250k benefits the wealthy.

Sure makes me confident in our government ::)

[fancyfowl]

Banks did fail. We see how they solved that. The printing presses are running full throttle. Today the dems passed another far spending bill, more presses will have to go on line quick.

[walls0stone]

it's just a little minnie note to make you feel like your world is fine. keep people chilled out.

People should wake up at some point and say "ya know what" we're just crap heads... why did people flip houses? and start businesses they had no right to start..and invest in markeets they had no business in.. why did stupid people go to college, and why did stupid parrents pay for stupid children to get stupid degrees?

I've got 5 men with in spitting distance of my house who all became excavation contractors over nite. Easy credit from CAT company and the indea that they could make a ton of money easy.

Some folks are not ment to own a house, and some should never own a business. it's not the gov fault, it's ours.

best way to saulve all these problems is to let them all fall flat on their A$$ and then those of us who were not stupid can have a hay day with all the bargins on stuff and land for sale.