Quote:
Originally Posted by spence
Good you're into CD ladders, I think that's a smart move for anyone who can't tolerate more risk.
-spence
|
spence,
1. you're not getting any real return after inflation, the true handle of which is 9% or more.
2. your money is tied up with a bank that might go belly-up. not because of sub-prime, but because of global illiquidity and panic runs on the deposit base.
3. the FDIC deposit insurance reserves (~$55 billion) are being rapidly depleted as we speak. indy mac's failure alone was originally supposed to cost $4-$6 billion of reserve money, that figure has shot up to $9 billion (might even be more). just for one thrift. there are others that are blowing up and require attention.
4. the recently passed TARP act increased FDIC deposit insurance. but banks aren't paying increased contributions to the FDIC insurance reserve. this will aggravate #3.
the safest asset right now is the hardest of the hard assets. physical gold, preferably stored safely outside of the u.s.
Threaded Mode