On hearing about the closing of Indymac Bank, my thoughts went like this:
- What the hell kind of name is that for a bank?
- Who has more than $100k in savings?
- I will probably never have to worry about having more money than the FDIC insures.
Which is, in these proto-depression days, something like reassuring. In case you don’t know, the FDIC guarantees accounts up to $100K. So if you have more than that, you need to spread it around if you want it guaranteed. The FDIC was invented after the last runs on banks, after the Great Depression. It’s nice to know, so far, that it’s working, but apparently there’s another 90 banks that are at risk of closing due to this whole mortgage disaster.
Of course, if you just have too much money in the bank, you should feel free to donate any extra you’ve got to the hundreds of organizations that need it.
This financial post brought to you courtesy of my sister Kathy’s birthday, who bugged me & bugged me to take economics courses in colleges & who I thoroughly ignored. (Sorry, Kath. Modernism seemed so much more pressing at the time. Happy Birthday!)