Money In the Bank
I highly recommend listening to this episode of “This American Life”. They totally explained the credit crisis in an easy to understand way. To be honest, their explanation made me want to pull my money out of the bank. The only thing that prevented me from making a run on the bank was that they assured me that all my money was protected by the FDIC.
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That sounded fine a dandy except for the thought running through my head “what if several or all of the major banks fold? How is the government going to pay EVERYONE back?” Then today I see this headline on Drudge Report:
FDIC: Insurance Fund Could Be Insolvent This Year…
Not exactly the news I wanted to be reading. I think my plan will be to move some of our money into a third bank. Actually not a bank at all, but a credit union, one that’s not covered by the FDIC but by the ASI instead. It could be just as vulnerable, but as the saying goes “don’t put all your eggs in one basket.”
One of my banks is ING Direct. I actually hate using them. They bought out Netbank and so I ended up with them by default. My other bank is Bank of America and between the two I’m least happy and least confident in ING. So I think I’ll be transferring money away from them.
