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Strategies & Market Trends : The Ego Forum -- Ignore unavailable to you. Want to Upgrade?

To: hubris33 who wrote (6975)	4/4/2010 4:27:13 AM
From: Amark$p	Read Replies (1) \| Respond to of 12175

Your comment: "So it looks like my Bank with a ratio of 38% isn't the best, but it falls in the range of those the. FDIC allowed to buy failed bank assets - and thus I conclude it is less likely to be a target of a take-over by the FDIC." Your bank will likely be okay if its troubled asset ratio is below 10. You need to monitor each quarter and ensure its troubled asset ratio is not increasing. What you need to remember is that many banks are not reporting their troubled assets accurately, given "extend and pretend" and otherwise not marking their troubled assets to market timely, if at all. Note many of the FDIC takeovers where the bank assets after mark to market were substantially different than reported troubled assets. I am just playing it safe going with an A+ bank, better to be safe than sorry. As you know, gold will likely perform better than cash in a bank during a financial meltdown. Nonethess, do NOT assume too big to fail banks will not fail. That would be a mistake. Do assume that there will be tremendous investment opportunities if and when there is a financial meltdown. IMO, you need cash in a safe bank to take advantage of those opportunities. Waiting for FDIC insurance to make your insolvent bank account liquid again may take several weeks/months in a financial meltdown. Cash in a safe bank is available immediately to take advantage of investment opportunities. If you decide to sell your gold @ $2,500 oz to say buy a house, its best to have a safe bank to put the proceeds.