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Tuesday, March 2, 2010 |
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| - By John March |
Amid ongoing worries about the economy and the stability of the financial system, the Federal Deposit Insurance Corporation reminded Americans that their bank deposits are safe.
In its announcement, the FDIC encouraged people to keep their money in deposit accounts at banks that it insures, adding that deposits up to $250,000 are covered.
"Your home is not the right place to be keeping your money. As long as you stay within coverage limits, and they're pretty high, your money is safest in FDIC-insured deposit accounts. Consumers who do not keep their money in banks are at risk of loss, theft or destruction of their money. Once money is withdrawn from insured institutions, consumers no longer have deposit insurance protection," said Ivan Cintron of the FDIC.
According to a recent New York Times report, the pace of bank failures in the U.S. has reached a point where the FDIC is trying to replace losses to its insurance fund, and that the problem could get much worse before it improves, with 702 lending institutions currently on the government's list of problem banks. The newspaper added that this is the highest number of problem banks since 1993, and that the number of failures associated with the current economy is expected to peak later in 2010.
While individuals' deposits are indeed insured by the federal government, it may also be worth noting that in the longer term, there are a number of potentially alarming scenarios facing the financial system around the world. For example, sovereign debt is approaching unsustainable levels in a number of countries, although Greece has received the most attention at this point for that issue.
Spain and Portugal are widely seen as being at serious risk for their own major debt problems, and with a $14 trillion national debt, the United States may find in time that it is not far behind.
The FDIC's reminder about the institutions it insures comes at a time when more than 20 banks have failed so far in 2010. And while deposits are insured by the federal government, some investors may want to do more with their money.
For example, now may be a good time to consult with silver and gold dealers about investment options in precious metals, especially in light of ongoing difficulty in the stock market at large, not to mention other aspects of the economy.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
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