Monday, August 17, 2009

FDIC now bankrupt?

Apparently so, according to Mish's analysis here.

Karl Denninger also wonders whether the FDIC is still solvent.

Another reminder to not have all your eggs in one basket. Have more than one bank, and spread your cash around. Yeah, the FDIC insures your deposits up to $250K (until the end of this year, unless extended, then the coverage reverts back to $100K), but you've got to trust that the FedGov won't change the rules due to, e.g., an accelerating and cascading wave of bank failures.

For those with safety deposit boxes, another reminder not to keep anything in them that you can't live without. And for those with precious metals, remember that during the last Bank Holiday and Gold Confiscation Extravaganza of 1933, those with gold in safety deposit boxes had their gold involuntarily "exchanged" at government gunpoint ("We're from the government, and we're here to help! Now hand over your money.").

Even in "normal" times, safety deposit boxes aren't all that "safe":

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