What am I missing here?
Nouriel Roubini believes,
The bank failures stemming from the crisis have just begun, Roubini says.
â€œThere are about 700 banks in critical condition,â€ he maintains. â€œI believe 100 to 150 of them, with about $1 trillion in assets, will essentially go bankrupt in the next year.â€
We’ve read that the FDIC needs an additional $150 Billion to meet its needs as banks fail. Yet today, the FDIC, as part of meeting the financial crisis, thinks protection on savings accounts ought to be raised from $100,000 to some higher number. Both McCain and Obama recommend it be raised to $250,000.
Who are we protecting now? What’s wrong with publishing a list of those critical banks and recommending that depositors shift assets above $100,000 to another bank. Why are we protecting stupidity? Why should you and I be on the hook for this stupidity?