Thursday, April 03, 2008
Financial Markets: Storm Approaching
Have been spending a lot of time reading up on the latest in financial market disasters. Coming soon to a bank near you.
Folks, if you think you have your funds in an FDIC-insured bank account, check on it. A lot of banks have shifted funds over into a money market account and simply told customers it was a way to get higher interest, without being clear that you were losing your FDIC coverage.
The broader picture is not simply that the financial system is teetering on the edge and the taxpayer will bear the brunt. The broader picture is how to keep things from falling into a true financial panic of the kind not seen since the 30's. Or worse.
Just as I took some time away a couple years ago to study up on war against Iran, which wasn't much discussed back then, or the demise of constitutional democracy in the U.S., which not many people believed could REALLY be happening, could it? Just like those times, I'm following some traces of ideas to see where they may lead.
Highly recommend Ian Welsh's weekly columns, Saturdays at 7pm eastern at the mother ship, firedoglake, for the fundamentals. Serious business, yet understandable to non-economists.
So if you're wondering what's up with me, fear not, all is well. Have seen all three of my lovely children and am settling in nicely in my apartment, waiting for housing prices to go down which they most assuredly will here in California.
Am spending a fair amount of time over at the capital markets blog Calculated Risk, where I'm mostly a silent newbie but occasionally piping up with an egregious comment. When there's a storm approaching, I want to be out there at the edge, observing and warning.
photo by jaroslaw pocztarski