Kurt, I am not worried about my investments or my accounts. I have even increased my paycheck deductions since the market has gone down because you can get more for your money right now. When the stock prices go back up (and they will) I will be even further ahead.

depending on your marital status, you can have several insured accounts in a single bank. you can put 100,000 or less in a gazillion banks if you want and it would all be fdic insured. credit unions also have fed insurance. qualified retirement accounts are usually insured up to 250,000. the key is spread your money around so that you don’t have more than 100,000 in any single account. in the indymac case, you are insured for the first 100,000 and then can expect to receive 50% on the excess over 100,000. people’s own fault if they lose, they shouldn’t have put so much into one account.

Worried about my savings? No. For one thing, I barely have any. What savings I do have, are about 60% gold, 20% silver, and 20% cash.

I’m far more worried about “present income” than savings. The unemployment rate is shooting up, and inflation is eating it hardcore.

FYI, this happens when you’re at war longer than we were in WW2. DOn’t like $4 gas? Write your congressman and tell them you want them to stop spending $2,000,000,000 per day in Iraq & paying for it with deficit spending and self-counterfeiting.

Fannie and Freddie do not buy sub prime loans they only purchase loans that are considered “A” paper. They buy loans in which borrowers have good credit, VERIFIED income, at least 5% down (those over 80% LTV have private mortgage insurance) and verified assets. These loans perform very well and yes the delinquency on these loans is up a bit but nothing terrible. What has happened to Fannie and Freddie in a nutshell is they are having trouble selling the notes as mortgage back securities on Wall Street. The so called experts on Wall Street can’t seem to figure out the difference between sub-prime and “A” paper loans. Therefore, Fannie and Freddie are running out of capital to back or buy these loans, this is why the Fed opened up the Fed’s cash window (bank have this available to them each day) to borrower funds at a discounted rate to back the loans they are holding.
One thing is for sure the Fed cannot let Fannie and Freddie go under, it basically will destroy the already week housing market. If they failed the fixed rate mortgages will basically fail to exist. Banks cannot put 15 and 30 year fixed rate mortgage on there books we would be looking at another S&L situation down the road.

FDIC, It is basically and insurance company. Banks pay premiums to the FDIC based on the amount of deposits they hold and it also is risk based depending on ratings given a particular bank as the results of Federal audits.
If you have more than $100,000 in any one bank and do not have the accounts titled correctly you could lose your money over that amount. A husband and wife could have $200,000 in a bank and their money would be perfectly safe. You simple make the husband the sole owner and the wife beneficiary on an account with 100K and vise versa. Viola, both accounts are insured.
There are too many banks that someone should lose money if they know what they are doing.

I don’t worry about it, because I know that johnh will always loan me $500,000 to start my own new business, and within 6 months I should be a multi-millionaire just like those happy folks in the TV commercials at 2:30 am.

Regardless, I don’t keep much money in my bank account….just enough to pay my bills. The interest they pay is pathetic. If the FDIC paid out all the money it owed everyone in a massive run on the banks, we shall have inflation like Weimer Germany.

We may be headed for a “Great Recession” and the only way to get out of it will be to overthrow this Capitalist Empire with a free enterprise system based upon the Fair Tax Plan, the breakup of monopolistic corporations with assets over $1 billion dollars, and free drinks for all the chix.

Typical panic piece.

I agree with the previous post, now is the time to be buying. With regards to investing, do the exact opposite of the stupid folks that follow the media and their emotions and you will come out smelling like a rose. When most idiots are selling, I am buying. I too increased my 401k contributions and last night emptied the kids piggy banks to put into their 529. I will be shaking couch cushions looking for loose change to add to my mutual funds.

Wise investors with a long term outlook see past this mornings news and know that this is a great time to bargain shop. Savvy investors are licking their chops snatching up discounted companies from the bargain bin while everyone else flees to “perceived safety.” When the market turns around, and it always has, the chicken littles will cry that the rich are getting richer as their assest values increase. Meanwhile, idiots will have their money in a fruit jar or under their mattress losing more and more money to inflation and taxes.

Newt, go ahead and explain for all of us how the war in Iraq has anything to do with the price of oil.

If the banks fail, the country is done, period. With that known, no, I’m not too worried.

Kathy you’re right on the mark. Chuck Schummer (D-NY), made comments about IndyMac one week prior to it’s collapse regarding his concerns about the strength of the company his concerns about it folding. His comments contributed to the run on company according the OTS. The OTS, of course, was denigrated by Schummer but remember, Schummer and his democrat buddies WANT there to be problems with the banks and mortgage companies. They WANT oil prices to be high. They WANT us to fail in Iraq. They WANT to have the highest office in the land and they’ll say anything to stoke people’s fears.

Banks are safe places to put your money. Mortgage companies are generally pretty sound. The FDIC was put in place to help protect depositors after the run on the banks leading to the Great Depression.

The subprime mess was a combination of unscrupulous selling practices AND the lack of personal responsibility of those taking out the loans. This economy will bounce back as it always does and maybe people will be just a bit wiser about where and how they invest their money. Now is the perfect time to buy stocks. It’s also the perfect time to buy a home. I wish my teenage boys were old enough to buy a home…they are a steal right now.

Why hasn’t the St. Louis media reported if any of our local branch banks are on the watch list? I’ve heard that National City is in trouble.