25 October 2009

Let's Pretend!

Let's play a game, okay?!!
Let's pretend Banks across the country are in real trouble.

Let's pretend commercial real estate values are plummeting, causing mortgage holders to walk away, which in turn is causing many banks to fail, while we are being told by some media sources, "Don't worry folks, everything is just fine!"

Let's pretend banks, in spite of huge transfusions of tarp money are in more trouble than ever because of commercial real estate problems and mergers with other marginal banks.

Let's pretend further, that insurance provided by the government to cover depositor's assets provided by the FDIC is in BIG trouble.

Then let's try to imagine what would happen if we had a really, really HUGE bank failure.
What do you think would happen?

Do you have large sums in non inflation-proof accounts?
Might be a good time to reconsider those accounts.

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