Mortgage Bankers Association

An article published in one of my local paper today about people afraid their bank will fail and who will lose their money. This despite FDIC insurance on bank accounts has increased from $ 100,000 to $ 250,000. A large photograph of a man in Manhattan who has just withdrawn his life savings from his local bank. He is a shoe box with his marvelous money in it – is expected to be home. Every twenty out there, you look away. It seems that many consumers are afraid of the failure of the bank and takedrastic measures to protect their hard-earned savings. Many of them are investing their money in precious metals: gold, silver and the like, or property.

Experts agree that taking your money in the panic is probably a bad idea. A spokesman for the American Bankers Association, points out, "not one penny of insured deposits has ever lost by a depositor the whole story about the FDIC." Flashback to the failure of IndyMac Bancorp Inc. earlier this year. Customersin line to collect as much money as possible from the financial institution. mortgage borrower who had died of the pressures of tighter credit, falling home prices and rising foreclosures, is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said . Some 10,000 depositors had funds in excess of the insured limit (or $ 100,000), for a total of $ 1 billion of potentially uninsured funds, the FDICsaid.

Comment: See your account in a bank, and remember that the money in a shoebox earn zero interest, and precious metals and / or real estate, may also collapse.