The Crash, etc.

[tw]

Originally Posted by Pico and ME

What happens if so many banks fail that the FDIC cant insure our money? Or is that even an issue?

FDIC has already quietly gone to the government for a bridge loan. They have already paid out so much on failed banks as to have a liquidity problem.

Bank accounts are insured to $100,000. Investment accounts are insured to $500,000. If you have more than that in any brokerage, and if the brokerage goes as Lehman probably will, then you lose all but the first $500,000.

These are not times to be complacent. You should know this stuff. Stock brokers don’t like it when you limit investments to $one-half million. They have multi-hundred thousand dollar incomes to protect.