Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Scotswife
Their existence is being threatened isn’t it?

It is possible that the government insurance agencies may have to receive some taxpayer funding to meet all their obligations, but the existence of the insurance should provide adequate public assurance to discourage bank runs.

Some banks are solvent; some aren't. A situation where 10% of banks are found to be insolvent and the others solvent would be better than a situation where only 5% of the banks are believed to be insolvent, but nobody knows which 5%.

102 posted on 09/29/2008 9:12:43 PM PDT by supercat
[ Post Reply | Private Reply | To 100 | View Replies ]


To: supercat

“Some banks are solvent; some aren’t. A situation where 10% of banks are found to be insolvent and the others solvent would be better than a situation where only 5% of the banks are believed to be insolvent, but nobody knows which 5%.”

That’s what I’ve wondering - how does it break down?
And are the banks so interconnected that any bank can escape a panic?

Or is there such a thing as a rock solid bank that is insulated from all this?

But now I’m babbling from lack of sleep.

Ahh hell ...all I can do is stock up on food and medicine and watch the news anyway.

Good night to you!


103 posted on 09/29/2008 9:18:45 PM PDT by Scotswife
[ Post Reply | Private Reply | To 102 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson