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Re: Confused, Why raise FDIC limit to $250,000
By:JL
Date: 10/1/08 11:30am
In Response To: Re: Confused, Why raise FDIC limit to $250,000 (Blue Mountain Drifter)

it's simple- if ppl feel their savings is in danger of disappearing, they will withdraw their cash from the bank. This could potentially cause what is called a "run" on the bank as everyone takes out their cash in a panic-- then the bank will run out of operating cash and the bank will fail. there are many ppl who have amounts greater than 100-K in savings and they should not have to worry about it being gone. if they feel confident that their savings is safe they'll leave it alone, and the bank can continue to function.

IMO this is very important, because it will encourage depositors leave their cash IN the bank and therby keep individual banking institutions solvent. The last thing we want is more and more banks to fail, especially the "small" community ones.

Messages In This Thread

Confused, Why raise FDIC limit to $250,000 -- Blue Mountain Drifter -- 9/30/08 2:14pm
Re: Confused, Why raise FDIC limit to $250,000 -- Cat -- 10/2/08 7:24pm
Re: Confused, Why raise FDIC limit to $250,000 -- ray -- 9/30/08 5:13pm
Re: Confused, Why raise FDIC limit to $250,000 -- Blue Mountain Drifter -- 9/30/08 10:09pm
Re: Confused, Why raise FDIC limit to $250,000 -- ray -- 10/1/08 9:10am
Re: Confused, Why raise FDIC limit to $250,000 -- Roger -- 10/1/08 3:07pm
Don't see too many of these around... *NM* -- Bob and Pat -- 10/1/08 3:20pm
I thought best ever was Reagan, :) *NM* -- Lola -- 10/1/08 3:15pm
Re: I thought best ever was Reagan, :) -- Roger -- 10/1/08 3:22pm
You're saying Clinton wasn't qualified/desireable? -- Lola -- 10/1/08 3:49pm
Re: You're saying Clinton wasn't qualified/desirea -- Roger -- 10/1/08 4:06pm
Its just on Money Market accts, isn't it? *NM* -- Lola -- 10/1/08 11:57am
Re: Confused, Why raise FDIC limit to $250,000 -- JL -- 10/1/08 11:30am
Re: Protects Rich People *NM* -- Firemon -- 10/1/08 11:46am
Re: Protects Rich People -- Lola -- 10/1/08 12:24pm
Re: Protects Rich People -- Roger -- 10/1/08 3:09pm
Gosh, I couldn't guess -- Lola -- 10/1/08 3:35pm
Re: Protects Rich People -- JL -- 10/1/08 12:42pm
Re: Protects Rich People -- Island Girl -- 10/2/08 11:00am