bald eagle wrote:
bald eagle wrote:
The FDIC will never have to. As long as people think there money is safe with a high insured amount then the bank runs will NOT occur. Thereby preventing many bank failures that would only happen if people panic and take their money out.
Nothing can help banks that are insolvent and they have always failed throughout history. What we don’t want are failures due to lack of liquidity and this helps that.
The bankers I talked to said the ONLY thing in the bail out that would help them would be the raising of the FDIC limits. Not because anything financial, but because it will help put people more at ease.
That’s right. Raising the limit will likely keep banks from failing unnecessarily by keeping people from making a run on banks that are ok.
And 99% of the community banks are more than okay. This is a big bank problem.
I hate to keep going back to the conversations I had, but I asked the bankers how this affects them.
My business is 100% dependent on farmers. If farmers don’t get their home loans, they go out of business and so do I.
I asked them how the meltdown on wall street would affect their ability to make farm loans, and they said that in a worst case scenario money would cost more if the bank needed to get more money.
People should run from any national bank and go with sound, solvent community banks.
I would not say all big banks. My business is with Suntrust - to my knowledge they were not heavy into subprime mortgages.
We are in the commercial construction side and we do have one job on hold because of financing that the developer can’t get right now. But it is because they do not have any tenants right now.
The bank is requiring two anchor tenants. They are simply shutting off money for spec buildings. Nothing new here. This has happened quite often in the past.
I don’t think it is the end of the world if they pass this thing in the house today. If it helps mentally, it may be good enough. However, they could do so much better. Problem is, we don’t have enough people in this country that understand what eliminating the cap gains tax would do right now. And without pressure from the masses it will never fly in a democratic congress.