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Is Your Bank Safe from Collapse?

BEAR STEARNS BANK

JP Morgan Chase acquires the Bear Stearns financial empire for $260mln. That’s less than the $275mln the New York Yankees paid to secure A-Rod for 10 years!

Ordinary Americans, usually too preoccupied gossiping about junk like Tori Spellings new baby, are finally starting to realize that somethings not quite right with America’s financial system.

The US economy is–to put it bluntly–whack.

Housing prices are still falling. Home foreclosures are heightening. The US Dollar is depreciating. Gas prices are skyrocketing. Inflation is soaring.

Is this the beginning of the great bank run of 2008?
Ben Bernanke and Warren Buffet predicted in 2007 that we would see major bank failures in 2008. They seem to be right, but who is next?

What I am afraid of is seeing a large consumer bank fail. If a major bank like Washington Mutual, Bank of America, or Wells Fargo were to go under, Americans would panic and make a run on the banks, withdrawing their savings.

If you know anything about how banking works, bank runs create a vicious cycle of financial pain that does exponential damage to the way banks operate. To make things worse, there are rumors that the FDIC only has $54 billion to cover over $4 trillion in deposits.

What is the safest bank to put your money?
I honestly don’t know. This is an open discussion. I don’t have the answers, but I’m hoping maybe you guys have some input. Please leave a comment with your thoughts!

PS: If you want to understand how modern banking works, watch this YouTube vid!

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Comments (102)
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102 Existing Comments
  1. Jerry said:
    on February 10th at 01:27 pm

    If you all had a clue we would not be in this mess. Congress is to blame for this mess, they are the one’s who had oversight. As for the Islamic nuts or extremist as they are called they attacked us we did not attack them, This is America the brave not America the cowards. Right now we are losing rights because people want the government to provide everything for them and those things cost, they cost in dollars(which we cant afford) and they cost in the lose of your rights.

  2. Kathy said:
    on March 4th at 09:20 pm

    go to : http://www.thestreet.com
    or http://www.streetsmart.com
    Martin Weiss lists regularly what banks are in trouble