Just throwing gas on a fire and getting everyone all riled up into a needless frenzy. I say hysteria and chaos is the way to go. It's more newsworthy.
So LA Times has multiple updates everyday in regards the events involving IndyMac Bank. Though with FDIC in place, I am sure it is hard not to panic and let the insurance claims get your money back but who really wants to go through that process. Wouldn't it be better to just get your money while you can rather than dip into the FDIC pool. There are numerous reports of police being called to watch over these lines as people go get their money. Just last week, people were lining up to drop a few bills on the latest iPhone and now people are lineup up go get their life savings. All this news has been intriguing to ignore.
Run and take out your money
July 15th, 2008 at 12:57 pm
July 15th, 2008 at 01:11 pm
July 15th, 2008 at 01:37 pm
Currently, the FIDC is looking at 90 banks across the country. Analysts predict it could be as high as 150. This is very small number compared to 747 S&Ls that failed.
Also, since the late 80s, banks are more capitalized (that's why you hear of Lehman and Citi raising capital) and banks have been paying higher preimiums to FIDC for insurance.
July 15th, 2008 at 05:55 pm
I recently read an article that muses that perhaps because there is NOT enough panic in the markets, it's not causing a normal, abrupt rebound that we've seen in the past. Rather, it seems to be dragging itself out.