Wikinvest Wire

More from Nouriel Roubini

Monday, September 15, 2008

Now, this really is "piling on" by Nouriel Roubini, an economist who, given how closely reality is matching up with his dire forecasts, is quickly rising to "rock star" status.

It's almost as if he's trying to incite the crowd with his "slow motion run on the bank" concern, the video below having probably already been played by hundreds of thousands of people after sitting on the front page of Yahoo! for most of the afternoon.

While most of the population probably doesn't understand that, in our fractional reserve system, all banks are fundamentally insolvent, most people with more than the FDIC insurance limit of $100,000 on deposit know enough to spread the money around.

For those people who have so much more than the $100,000 limit that "spreading it around" is impractical, it's kind of hard to feel sorry for you.

My grandmother (1905-1987) used to always caution her children and grandchildren to "spread their money around". Having lived her prime years during the Great Depression, that was a lesson that was proabaly impossible to unlearn.

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Anonymous said...

Are Credit Unions considered banks? Do they suffer the same fate?

Anonymous said...

Most share accounts at credit unions are insured by FDIC equivalent organization called NCUSIF (National Credit Union Share Insurance Fund) for up to $100,000.

dearieme said...

On another blog, a commenter demanded to know who Roubini is and opined that "he sounds like a terrorist". Begorrah.

Anonymous said...

Bin Laden is now laughing. Hope he eventually loses a bundle on the honey and heroin market.

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