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.