August 27, 2008
– Comments (1)
The financial crisis is still early and already the FDIC is bringing up going to treasury....
Oh yeah... this is bad!
FDIC has something like $38 billion on the books. It gets worse... the SPIC, which "insures" the assets of investments in brokerage accounts, is capitalized at .... are you ready? ... $1.5 billion.
What a joke!
I recommend people start preparing themselves mentally for the distinct possibility that their assets, whether in banks or in brokerage accounts, could conceivably disappear overnight if we get a concentrated rush of failures. The 'too big to fail' list can only grow smaller, and the entities that are charged with guaranteeing your assets are woefully underfunded.