Why are banks failing? Or are they really failing? How can you best protect your assets?

Question

Three questions, I know :S but with the recent news about IndyMac has got me wondering about the condition of other U.S. banks, and how to protect your own personal assets in the event your bank fails.

Answer 1

Sleazy carpetbagger "loan" companies like Countrywide Loans cajoled banks to lend $$$ to people who couldn't cover the loans--for a juicy middle-man fee--and now have since cowered into the shadows.

Banks themselves, with great help from INEPT management ( the "brown-noser" team--who had NO business being in the positions they backstabbed their way up to ),  freely lent out $$$$  for overly inflated houses ( likely for a juicy kickback ) to people who now realize they can't afford them.

So banks aren't going to get their $$$ back (that wasn't there in the first place ), and now--they feel the PANIC need to reduce their overhead by shutting down offices and laying off employees ( their best targets should be the INEPT executives who got them in this mess to begin with ).

Bottom line:  If you have LESS than $100k, don't sweat things---you're covered.  What if you have OVER $100k in the bank?  My advice:  SPLIT it into seperate account(s) UNDER $100k, keeping it safely insured under the F.D.I.C.

That not only will keep your money safe---but it will help absorb the "crunch" and might even spare some banks from abject failure.

Banks simply should have to wake up and realize the very ones who betrayed them are the ones wearing business suits in their corporate offices.  If I were a bank stockholder--I'd demand my bank root out the corrupt executives ( shouldn't be all that hard to find them ) and hand them over to police.  If those crooks can't pay back the stolen $$$$, then it's off to prison for them.

Remember:  If you have LESS than $100k in the bank, you're all right---no reason to panic about looming dark days.

Answer 2

You're right to worry.

I'm Canadian, but I keep on top of the US economic news.  Here's my advice.  Move into the most stable, solid bank on the basis of your own understanding.  I really wouldn't go with some local Joe-Shmo bank.

(2) I'd move some of your US dollars out and get it into gold currency in a place like GoldMoney.com - more information on that site - read their book.

(3) Learn about Argentina's recent (2001?) financial collapse - similar lessons to be learned.

Yes, the banks are really failing.  RBC Credit Analysts this week predict that as many as 300 more will fail.  Many fail, and go unreported in the national media - for good reasons, maybe.

MoneyEnergy

http://www.getmoneyenergy.com

Answer 3

The  banks  made  big  loans  on  overpriced  houses

That   too  many  could  Not  afford  after  their  rates  reset ,

So ,  the  bank  is  Not  getting  the  loan  $$$$  back  which  is  bad  because  the  people  who  supplied  the  $$$$  want   it  repaid .

Yes  they  are  really  Not  getting  paid  back /  failing  and

Your  deposits  are  insured  up  to  $100,000  if

you  have  it  in  a  bank  that  posts  that  FDIC  logo .

( which most  US  banks  do )

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Answer 4

As long as you have less than $100K in any one bank, you are protected.