John,
You & Ole are talking about this relevent posting concerning Y2k and banking and feel I should chime in with a little first hand knowledge.
<<(5) The FDIC prides itself on the "safety" of insured deposits. Isn't it true, however, that deposits in failed institutions can be tied up for
weeks or months before depositors finally receive their money? If there are significant disruptions due to Y2K, won't the FDIC's response be even slower? Moreover, if the assets of the FDIC itself aren't sufficient to cover the losses and/or a run threatens to exhaust the Fed's cash reserves, won't we be seeing limits on our ability to withdraw cash or even bank holidays?>>
I have seen this one first hand & lived through this Hell! Also happened to my parents(at a savings & loan & a bank)! Did you know the high yielding CD's from FDIC insured banks are not "directly" FDIC insured? Yes, the banks that goes bust is taken over another bank, and with it all obligations - "as to principal only" -.
My money(in a failed bank) was tied up for 6 weeks as was theirs.
The money from the failed Savings & Loan for CD's was repaid after a year WITH NO INTEREST for an entire 6 month period. They never did get the interest! N E V E R! These investment "experts" like to tell you investments in gold or silver bullion are "dead assets"
as they never pay interest, they should also mention a little recent history of other "dead assets". They could not even withdraw the principal (at the "significant reduction in interest" rate for the year!
These were the bad days of the oil collapse in West Texas. They saw
the value of their home drop in short order and never return.Prior to the crash, one day while My Ex & I were at dinner over there, a guy rang the door bell. and offered my dad a certified check for his home
$190,000 - sight unseen. Four years later, after my fathers death, she sold the home for $68,500.
The house has since resold (in the last year) for $110000. |
