What do yall think of that?

There should be no limit ... you put your money in a savings or checking account with very limited interest then it should never be the case that the banks do something that would wipe out your money in those kinds of accounts.

If you play the stock markets, then fine ... you pay your money and take your chances.

I see your point. But this could be abused by fat catz....I am tinfoiling again.

I thought 250,000 per acount was for joint accounts?

Will they raise that too?

I think that it makes good sense to raise the limit to 250k. It would be a good deterrent for large money moves, and points to the heart of what is happening at the bank level. The capitalization and balance sheets of these institutions affects their ability to lend to each other.

Obviously, there are many other factors involved; yet this is what appears to be at the base of what this admin is trying to fix with their ham handed bailout. The credit crisis part is very real. I just don't buy that their solution will affect much more than the temperment aspects of the market.

I watched the European version of Squawkbox (CNBC) into the wee hours this morning, just to get their take on the bailout. Very interesting. They likened it to (paraphrasing here) trying to push rope uphill. They couldn't understand why the 'solution' was to bail out the investment banks, and not address the foreclosure problem and the people directly. They saw it as moving money/asset classes.

One of the things that they suggested was to raise the FDIC level, among other things. They had a person (can't recall who- bleary eyed at that point ) who was interviewed across the pond back here in Detroit, who defended Paulson's plan, saying that it was the 'trickle down' effect that would help main street. Hmmphf.

They also wondered why Paulson still had his job. How could he not have seen this coming. Someone else chimed in that none of the central banks around the world appeared to either.

I don't think NOW is a good time to raise FDIC insurance. FDIC is already at risk and raising it's insurance cap would further jeopardize that. Some people are struggling with homelessness and worse NOW. I'd hate to see the wealthy getting out their $250K, FDIC insured, and the poor left holding an empty bag.

Later maybe, but our financial system is such an arcane tangle of bandaids, that I'd really like to see it rethought, not just get another bandaid.

Heh heh heh - scru u House!

http://www.house.gov/house/messaging.shtml

I understand your point, yet it is only an issue if, and when, it has to be paid out. Most of these mergers and buyouts require no FDIC coverage/losses. I will admit that I don't know and haven't seen any numbers that directly reflect recent FDIC insurance payouts regarding bank failures. Small businesses, for example, keep accounts that might benefit from upping the limit. I am not in favor of removing it completely.

As an interesting aside, the feds waived the FDIC Improvement Act in regard to Citibank and Wachovia. In effect, making it an 'open market rescue' where the FDIC just puts in capital, in return for equity warrants.

Obama proposed exactly the same thing. McCain is simply copying Obama.

I guess that is the issue. If FDIC insurance is never triggered, might as well make it really high, to boost confidence. If it is actually needed, better make sure it can actually be paid out, otherwise it will encourage runs on banks. That's the crime, IMO, that the financial services industry is now so opaque and unmonitored because of Republican policies, that we have NO IDEA of its state. All we know is that insiders will not let insiders lose a lot of money (we pay, of course). And we have no control.

I think Obama proposed that first...it is to help bring reassurance to the mkts. I saw it on yahoo this morning let me see if I can find it.

Now we are in complete agreement.

Obama calls for raising FDIC limit

EXACTLY! WTF?

When a campaign is bereft of good ideas, they co-opt others, and pretend they are their own.

'Change' anyone?

It pleases me that the arena of thought has now shifted from the High and Mighty to the citizenry.

The American Citizens are blistering the bejesus out of the House bandwidth - causing, literally, a "denial-of-service" attack upon the House website. But it's not a hacker job (at least I don't think so) - it's much more likely that the American Citizens are pummeling the SHIT out of their representatives by email - so much so that they can't even get their opinions IN, much less READ in the Congressional offices.

There's a lot of scared reps in the HOB's in Washington, and I'm sure glad that there is.

As a goyim, I recall that the New Year's of the High Holy Days is when God decides whether you will be written into the Book of Life, or the Book of Death, for the coming year. A lot of Congresspersons know EXACTLY how that feels. November is coming, and its messenger is quite unsettling.

The time of the Reaping comes.

Keep crowning them folks! With this scepter, we knight thee representatives of the commons.

QUOTE (CowboySteve @ Sep 30 2008, 12:05 PM)

It pleases me that the arena of thought has now shifted from the High and Mighty to the citizenry.

The American Citizens are blistering the bejesus out of the House bandwidth - causing, literally, a "denial-of-service" attack upon the House website. But it's not a hacker job (at least I don't think so) - it's much more likely that the American Citizens are pummeling the SHIT out of their representatives by email - so much so that they can't even get their opinions IN, much less READ in the Congressional offices.

There's a lot of scared reps in the HOB's in Washington, and I'm sure glad that there is.

As a goyim, I recall that the New Year's of the High Holy Days is when God decides whether you will be written into the Book of Life, or the Book of Death, for the coming year. A lot of Congresspersons know EXACTLY how that feels. November is coming, and its messenger is quite unsettling.

The time of the Reaping comes.

Not being the religious type (although the history is fascinating) I think what you have described is sounding karmic. The people are truly pissed, and it is wild to watch the scurrying of the house repugs for whatever kind of shelter they can find. If you delve a bit under the surface of their votes, and why they were voting that way, it is becoming clear that most of the votes Boehner got were from 'safe seats'. ALL of the yes votes were from safe seats in his home state. Newt was behind the scenes with power plays (probably setting himself for 2012), and the rats have found no safe cover. All of their whining about Pelosi came back to bite them in the ass. Republicans are in near complete disarray, and Karmic Justice may not be far behind.

I can only hope that this bill gets reworked to address foreclosures more directly. This is the crux of the problem, exacerbated by the outrageous leveraging by investment banks with the bundled securities of those mortgage loans. If they only address the bank capitalization aspect (buying the bad debt) without stopping foreclosures, and reworking those loans to reflect the lower values, I think that this bailout is just punting the problem down the road.

Kara, your tarot cards there are particularly apt. Key XIII of the tarot is indeed the "death" card, yet it repersents something even more important:

Change.

pestone, I can't take credit for that wisdom...it was Cowboy's prescience. Natch, he is very good in that regard. Love his posts.