If both Jim "Mad Money" Cramer (CNBC's answer to Dick Vitale) and Dr. Nouriel Roubini, (the academic economist's answer to Eeyore) think significantly raising the FDIC's deposit insurance limit is the key to saving America's banks, there's probably something to the notion having the FDIC raise the limit to $2.5 million per account (as Cramer wants) or "blanket deposit protection" (as Roubini advises.)
Both of them strongly suggest doing this to prevent people from taking their cash out of banks, banks in this case being non-US depositors and small businesses, as well as retail consumers with banking accounts. Roubini runs the numbers and finds that only 63% of money in banks as of Q2 2008 are insured under current FDIC limits.
This is the economic equivalent of Londo Mollari and Ambassador G'Kar on the same side of the issue (not to mention Obama and McSame), so it's one Congress should get enacted pretty damn fast. They both think $250,000 isn't nearly enough, and there is the whole point that Ireland's government is indeed offering blanket deposit protection right now for the six largest Irish banks, causing a bit of a problem with most of the EU's countries having, you guessed it, vastly different deposit insurance limits at or above the EU-mandated 20,000 Euro limit.
Something of a worldwide agreement on this might be a really, really smashing idea.
Both of them strongly suggest doing this to prevent people from taking their cash out of banks, banks in this case being non-US depositors and small businesses, as well as retail consumers with banking accounts. Roubini runs the numbers and finds that only 63% of money in banks as of Q2 2008 are insured under current FDIC limits.
This is the economic equivalent of Londo Mollari and Ambassador G'Kar on the same side of the issue (not to mention Obama and McSame), so it's one Congress should get enacted pretty damn fast. They both think $250,000 isn't nearly enough, and there is the whole point that Ireland's government is indeed offering blanket deposit protection right now for the six largest Irish banks, causing a bit of a problem with most of the EU's countries having, you guessed it, vastly different deposit insurance limits at or above the EU-mandated 20,000 Euro limit.
Something of a worldwide agreement on this might be a really, really smashing idea.
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