San Diego Housing Bubble News and Analysis

Here is an FDIC Advisory Opinion on the safety issue-
http://www.fdic.gov/regulations/laws/rul...

This thread is so timely for me.

Thanks for any input.

Also, is anyone else feeling like they need to stash a pile of cash somewhere?

Washington Mutual was just rated down to BB rating. If a bank fails, I know the FDIC will insure against it up to $100k. With the way the gov't has handled other problems (like FEMA), I could see delays, errors, or headaches if your bank does go under. Eventually it will get worked out, but I'd rather not have to deal with that.

So if there are banks that are well capitalized or "safe" -- or perhaps safer than others, I was wondering which they were.

I could see delays, errors, or headaches if your bank does go under

I don't think so; In the late '80s and early '90s, during S & L meltdown, FDIC was extremely efficient and punctual in paying depositors.

How about NCUA for credit unions? Does it differ much from FDIC? Do credit unions generally have cleaner books than banks?

I am not aware of any mass failure of Credit Unions. My personal opinion is they are more cautious and don't get into speculative/risky lending. So, I view them favorably compared to banks.

For a specific Credit Union, you should lookup at

http://www.bankrate.com/brm/safesound/br...

for Safe & Sound and CAEL (Capitalization, Asset quality, Earnings and Liquidity) ratings.

thanks bsrsharma. that's reassuring.

perhaps i've become too cynical with the current administration.

If a bank were to fail, it wouldn't come as a surprise. Most people would know well in advance at this point with the way the media spits out information. If you're risk averse, pay attention to the FDIC limits. If you don't want to have a bunch of accounts at different institutions, then buy US Treasury Bills. Structure out the maturities that coincide with your liquidity needs. Don't take chances.

PB, You need to prove the assertion that "if a bank were to fail, it wouldn't come as a surprise." What about Netbank?? There were some small online business that had $1M in Netbank and got screwed. Guess the news didnt tell the 1500 people here:
http://www.nuwireinvestor.com/articles/n...

You could watch the stock prices if its public or get Weiss rating at
http://www.weissratings.com/HL_Bank.asp

Equalizer - Good point. However, read the rest of what I said. Pay attention to the FDIC limits, don't take chances especially with little banks such as Netbank. One thing to note about bank failures is that another bank typically will step in and assume the clients deposits and FDIC will back them.

1-Is the FDIC insured $100k per account or per client. I have two account with a small bank totalled over the insured limit. Shall i be concerned.

2- When Fallbrook $ 1Mil. home is going back to reality and drop to yrs. 2000 or 2001 prices. Any suggestion!!!

1-Is the FDIC insured $100k per account or per client. I have two account with a small bank totalled over the insured limit. Shall i be concerned.

I believe that it is per client.

The FDIC will insure up to $100k per social security number per institution. What you can't do is open a bunch of $100k CDs at the same bank thinking you're OK.

As for home prices in Fallbrook, the well is drying up everywhere, be patient. The recent disconnect from Treasuries and mortgage rates spells trouble. Heck, even Rancho Santa Fe is falling...

After recent banking turmoil, I revive this thread.

Where is a good place to park cash? Is any bank safe? Does it even matter, since the dollar is getting so worthless?

Honestly, i think your good bets are.
1)BAC
2)Wells Fargo
3)Washington Mutual

You might be wondering about #3. But the reasoning goes along with
a) lightening doesn't usually strike twice in the same space
b) or statistically, the safest airline to fly is the one that just had a disaster the day before (minus China Airlines, which has more than exceeded statistics by it's own virtues)

BTW: i think the FDIC insurance was just raised to $250k.

FLU - Thanks for the feedback.

As far was #3, WaMu technically is Chase. So is Chase safe? They've taken on some major debt.

Silly to ask, but after Lehman and Merrill, well, I mean, I was a little surprised. So now I wonder about any bank, no matter what size.

I am concerned about BAC and Wells. They are absorbing a lot of bad loans and we all know the 700 billion is surely not going to cut it. So some of these banks are still holding some bad debt.

Are credit unions safer? I'm hearing they did not participate much in subprime.

As far as FDIC, well, my question, how healthy is FDIC? With so many banks going bellyup, raising it to 250k only scares me more.