FDIC Insurance – CORRECTION

The FDIC Insurance was raised from $100,000 to $250,000 in this last crisis in the USA. Sorry old habit. I should also state, that the major banking crisis is in Europe – NOT the USA. However, the crisis we will face is created by the REPO market to some degree and wild trading Money Center banks. You can move your money to a local regional bank, but this may still not protect you if the wild and crazy NY trading banks blow up as they have always done for each crisis.
In the good old days BEFORE 1985, banks had to get your permission to sell your funds overnight into REPO. They still must get that client approval in London – but not USA. Legally they should disclose that fact, but this is the part of the real legal status of a bank account. You deposit what you think is your money.

This post was published at Armstrong Economics on November 16, 2014.