SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Wyätt Gwyön who wrote (70883)10/4/2006 12:45:30 AM
From: mishedlo  Read Replies (1) of 110194
 
I understand both sides of this issue.
I am in favor of deposit insurance but only partially.

Chorus bank is offering 5.6% interest on CDs that supposedly are govt insurred. That is nuts. There should be some risk somewhere for chasing yield.

A very good case can be made for only insuring checking accounts and US treasuries - Period. In that model banks can offer what they want on other products but should be required to state in BIG PRINT signed disclosure that the deposits are not insurred and there is risk of losing money.

Same thing with money markets.
Only money markets tied to US treasuries with a duration of 6 months or less would be insurred.

Finally, I would kill all sweeps programs. Banks would not be able to loan out checking deposits.

Deposit insurance is retained but only on a very tight range of products.

Mish
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News