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bsrsharma
ParticipantAnother option is directly buying treasuries. Guaranteed till USA remains a nation!
Participant“If you’re so concerned about FDIC, keep your money with the big banks”
Don’t underrate FDIC so fast! In the 1980s, it was FDIC (actually another agency called FSLIC) that prevented Savings & Loan collapse from becoming a 1929. When systemic instabilities occur, a large institution is no match to US government’s full faith backing. I can well imagine Wells, BoA, Citi all going down and the world will continue, though with quite a few hiccups.
BTW, FDIC doesn’t cover “all the deposits”. There in lies the secret. It covers just enough that you don’t have to worry where you will get your next hamburger. That prevents the type of panic that caused 1929.
See http://en.wikipedia.org/wiki/Savings_and_loan_crisis
Also, if you don’t like FDIC for any reason, a good way to invest your cash equivalents is to directly buy Treasury instruments. Especially good in a potentially high inflationary regime are the TIPS (Treasury Inflation-Protected Securities)
See
http://en.wikipedia.org/wiki/Treasury_security#TIPS
http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm
Participant“If you’re so concerned about FDIC, keep your money with the big banks”
Don’t underrate FDIC so fast! In the 1980s, it was FDIC (actually another agency called FSLIC) that prevented Savings & Loan collapse from becoming a 1929. When systemic instabilities occur, a large institution is no match to US government’s full faith backing. I can well imagine Wells, BoA, Citi all going down and the world will continue, though with quite a few hiccups.
BTW, FDIC doesn’t cover “all the deposits”. There in lies the secret. It covers just enough that you don’t have to worry where you will get your next hamburger. That prevents the type of panic that caused 1929.
See http://en.wikipedia.org/wiki/Savings_and_loan_crisis
Also, if you don’t like FDIC for any reason, a good way to invest your cash equivalents is to directly buy Treasury instruments. Especially good in a potentially high inflationary regime are the TIPS (Treasury Inflation-Protected Securities)
See
http://en.wikipedia.org/wiki/Treasury_security#TIPS
http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm
ParticipantNever heard of this guy Rob Portman. I still remember names like David Stockman and Leon Panetta from previous administrations. Friend of Heckuva job Brownie? This administration seems to have a talent for picking dumb-as-a-doornail imbeciles for senior leadership.
ParticipantNever heard of this guy Rob Portman. I still remember names like David Stockman and Leon Panetta from previous administrations. Friend of Heckuva job Brownie? This administration seems to have a talent for picking dumb-as-a-doornail imbeciles for senior leadership.
ParticipantIf you have several 100K $, you may want to diversify your currency even if you want to remain in cash. A good mix of GBP, EUR, Yen, CHF (Swiss Franc), Canadian $ etc., may be better than all USD. Expect severe devaluation of USD due to balance of trade, credit risks, budget deficits etc.,
ParticipantIf you have several 100K $, you may want to diversify your currency even if you want to remain in cash. A good mix of GBP, EUR, Yen, CHF (Swiss Franc), Canadian $ etc., may be better than all USD. Expect severe devaluation of USD due to balance of trade, credit risks, budget deficits etc.,
ParticipantThe per account rules are a bit complicated. See
http://www.fdic.gov/deposit/deposits/insured/ownership.html
If you are very concerned, you may sleep better by opening up accounts at different institutions and limiting each deposit to $100k.
ParticipantThe per account rules are a bit complicated. See
http://www.fdic.gov/deposit/deposits/insured/ownership.html
If you are very concerned, you may sleep better by opening up accounts at different institutions and limiting each deposit to $100k.
Participant“owner has to sell by next November or face 70K in Capital gains tax.”
Can you explain that?
Participant“owner has to sell by next November or face 70K in Capital gains tax.”
Can you explain that?
ParticipantSD Realtor,
If I may play devil’s advocate, if it hurts Americans less by devaluing $ compared to causing a severe recession, it may be lesser of the two evils. Like, amputating limbs to save a patient from gangrene. If one has to choose between living without a limb or die, most may choose to live. If most of the debts are held by foreigners, shouldn’t the FED pick citizen’s interests over foreigner’s?
One thing consistent about Cramer is, he is advocating the same for homeowners underwater – ditch the home and save your shirt rather than ending up on the sidewalk penniless.
ParticipantSD Realtor,
If I may play devil’s advocate, if it hurts Americans less by devaluing $ compared to causing a severe recession, it may be lesser of the two evils. Like, amputating limbs to save a patient from gangrene. If one has to choose between living without a limb or die, most may choose to live. If most of the debts are held by foreigners, shouldn’t the FED pick citizen’s interests over foreigner’s?
One thing consistent about Cramer is, he is advocating the same for homeowners underwater – ditch the home and save your shirt rather than ending up on the sidewalk penniless.
Participanthow long will it take to get my money from the FDIC?
From what I remember from the 1990 S & L crisis, FDIC was very prompt. The regulators would come, take over all assets and pay off the depositors the same day. (The assets were then transferred to Resolution Trust Corporation (RTC). I remember seeing some assets disposed of at 20 – 40 cents on $ – usually commercial properties.)
Will the FDIC get me all of my money back?
$100,000 per account maximum, absolutely firm. Not a penny more, even if you had millions.
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