Jan 25 2010

Savings and Deposits and the Zero Percent Bank Account – Punishing the Saver for a Nation Fueled by Debt Consumption.

The current financial system is designed to punish savers.  The Federal Reserve by cutting the Fed funds rate to virtually zero has made it a disincentive for people to store any of their wealth and get any acceptable return.  If we look at savings account rates you will find that many banks are offering from […]

Jan 20 2010

FDIC and Rewarding the Risky Banks. How a Safety Net Hides the Risk in Banking. When Your Bank is Failing or is Emerging from Failure Offer Good CD Rates.

There is a fascinating phenomenon that occurs in the banking system when capital is running short.  At least, this was the case before the government decided to be the ultimate financial backup for the entire banking structure of our country.  Places like Washington Mutual or Countrywide were offering stellar rates on various savings vehicles only […]

Nov 28 2009

FDIC too broke to Takeover Banks? No Bank Failure Friday on Black Friday. Can 5,300 Employees Deal with $5.3 Trillion in Deposits?

The Federal Deposit Insurance Corporation (FDIC) was hammered this week when a third quarter report demonstrated that the FDIC was running in the red to the sum of $8.2 billion.  This is troubling since the FDIC protects deposits in member banks up to $250,000 and funds covered by the deposit insurance fund (DIF) are over […]