barack wants to raise FDIC limit to $250k

[BlahBlahYouToo]

pointless IMO. how many americans even have $100k in the bank.
even small business i doubt have that much cash on hand.

and if i had more than $100k, it would definitely not be deposited in a bank.

(CNN) -- Democratic presidential candidate Barack Obama Tuesday proposed expanding federal deposit insurance for families and small businesses as a way to convince lawmakers who voted against the $700 billion federal bailout plan to change their minds.

"One step we could take to potentially broaden support for the legislation and shore up our economy would be to expand federal deposit insurance for families and small businesses across America who have invested their money in our banks.

"The majority of American families should rest assured that the deposits they have in our banks are safe," Obama said in a statement put out by his presidential campaign.

"That is why today, I am proposing that we also raise the FDIC limit to $250,000 as part of the economic rescue package - a step that would boost small businesses, make our banking system more secure and help restore public confidence in our financial system."

Currently, deposits of up to $100,000 are guaranteed by the government's Federal Deposit Insurance Corporation.

Obama said he will talk to leaders and members of Congress later Tuesday to offer his idea and urge them to act without delay to pass a rescue plan.
Economic rescue package

Monday, the House of Representatives - defying leaders of both parties, the White House and both presidential nominees - voted down the economic rescue plan by 228 to 205 margin.

The Illinois senator urged lawmakers to try again on the bailout proposal and warned of grave consequences if nothing is done.

"Continued inaction in the face of the gathering storm in our financial markets would be catastrophic for our economy and our families. At this moment, when the jobs, retirement savings and economic security of all Americans hang in the balance, it is imperative that all of us, Democrats and Republicans alike, come together to meet this crisis."

 

[imported_Lothar]

So does McCain.

 

[TheSlamma]

P&N?

 

[Platypus]

batshit insane (P&N) ------->

 

[NFS4]

Originally posted by: Platypus
<------- batshit insane (P&N)

**Fixed**

 

[krunchykrome]

You would be surprised how many small businesses have $100k+ in bank accounts.

 

[Anubis]

Originally posted by: NFS4

Originally posted by: Platypus
<------- Doom & Gloom (P&N)

**Fixed**

fixed it again

 

[Jeff7]

Maybe that's just to factor in upcoming inflation.

 

[Kirby]

Because he's a Muslim!

 

[Arkaign]

$100k is an outdated amount, and yes, it should be raised. It should probably be reviewed and balanced with inflation regularly, just as the minimum wage increases.

Yes, it would be wonderful if buying power remained constant, or increased over time, but that just isn't the way it goes.

 

[JDub02]

Originally posted by: krunchykrome
You would be surprised how many small businesses have $100k+ in bank accounts.

i would say the vast majority of them. $100k is alot for an individual to have, but not alot for operating a business.

 

[AccruedExpenditure]

'Even small businesses don't have that amount of money on hand'
Yes they do
-AE

 

[sandorski]

Originally posted by: nkgreen
Because he's a Muslim!

...and a Communist!

 

[Eli]

Sounds like a good idea.

100k is nothing nowadays.

 

[TallBill]

I don't see the issue with it.

 

[jonks]

I'd like to see some stats on the number of people or businesses they project this would have any effect on, and the amount of money over 100k in such accounts. Otherwise it looks gimicky.

 

[BlahBlahYouToo]

Originally posted by: TheSlamma
P&N?

just because a politician stated it does not automatically make it P&N.
if anything it's finance, but we don't have a finance forum.

 

[waggy]

you would be suprised how many do/.

 

[Queasy]

Originally posted by: Lothar
So does McCain.

Yep

?I have talked to the President this morning and recommended an increase from $100,000 to $250,000 FDIC insurance on deposits. I also strongly recommended that we use the exchange stability fund that the Treasury has available ? $250 billion ? to shore up these institutions. Also, the Treasury has at its disposal about $1 trillion that they could begin without Congressional authority buying up some of these terrible mortgages and help stabilize the situation. So I?ve talked to the President. I know that we have to act. Even though we failed yesterday, even though I went back and was able to get more Republicans on board or help get more Republicans on board, we will go back to this, and I will be engaged always where I think America needs engagement.?

 

[BlahBlahYouToo]

Originally posted by: TallBill
I don't see the issue with it.

there's no issue. just seems useless to most as i'm sure a large majority of the population does not have more than $100k.
and those who do have $100k in liquid assets probably do not have it in a commercial bank account.

 

[krunchykrome]

Originally posted by: BlahBlahYouToo

Originally posted by: TallBill
I don't see the issue with it.

there's no issue. just seems useless to most as i'm sure a large majority of the population does not have more than $100k.
and those who do have $100k in liquid assets probably do not have it in a commercial bank account.

small businesses do have that kind of cash sitting in bank accounts

there's nothing left to argue

 

[randomlinh]

they want to boost confidence

 

[Special K]

Originally posted by: BlahBlahYouToo

Originally posted by: TallBill
I don't see the issue with it.

there's no issue. just seems useless to most as i'm sure a large majority of the population does not have more than $100k.
and those who do have $100k in liquid assets probably do not have it in a commercial bank account.

What about someone in retirement who has amassed a multi-million dollar nest egg through regular investing? It's likely that a good chunk of their portfolio will be in cash. Keeping that cash in an FDIC-insured money market account seems like a good idea to me.

 

[sdifox]

Originally posted by: BlahBlahYouToo

Originally posted by: TheSlamma
P&N?

just because a politician stated it does not automatically make it P&N.
if anything it's finance, but we don't have a finance forum.

I think p&n should just be renamed to spleen venting. Not much discussion at all.

As to op's topic, if it helps settle nerves, I am all for it.

 

[BeauJangles]

Originally posted by: jonks
I'd like to see some stats on the number of people or businesses they project this would have any effect on, and the amount of money over 100k in such accounts. Otherwise it looks gimicky.

Considering nearly every financial expert thinks it's a good idea, I have trouble believing it's a gimmick of any kind.