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To: jlallen who wrote (272323)	10/3/2008 10:30:13 PM
From: Ish	Read Replies (2) \| Respond to of 793895

<<I thought I heard they were going to raise deposit insurance to $250K per insured account.>> When you think about how few people have that much in the bank it's chicken feed.

To: jlallen who wrote (272323)	10/3/2008 10:39:47 PM
From: TimF	Respond to of 793895

No I was talking about the proposal quoted in my post and asking for opinions. Essentially it amounts to a reduction in the amount that is insured, although there is more to it than that. If you adjust for the value of the currency its insuring only about $17,700. If you adjust for the GDP per capita differences in the US and the UK, it might be over $20k, but still a lot less than $100k, let alone $250k. There would be (apparently) essentially unlimited insurance on accounts that essentially operate as money market funds that are 1 - 100% in treasuries (so are pretty much already insured anyway), and 2 - don't count towards a bank's reserves, and thus can't be used to lend out more money.