Sunday, August 15, 2010

Bank Runs?

Was listening to the radio today when I heard a commercial that struck me as being rather odd. It said something like "and for 75 years not one customer has lost one cent in FDIC insured accounts". I wasn't listening at first and I thought it was an ad for a bank. I snickered at the stupidity of the statement, of course an insured account didn't lose money, and then as the ad continued I realized the ad was by the FDIC itself!

Now I've heard bank ads before mentioning their FDIC insurance but I don't recall an ad directly from the FDIC. It makes me wonder two things. The first is my fiscal conservative attitude kicking in and saying 'why is the government spending money on ads to tell people something that everyone knows?' The second I guess is from a conspiracy slant, 'why the sudden need to reassure the public that their bank deposits are safe?'

Is there something happening with bank deposits that I haven't heard on the news. My understanding of the current economy was that people in fear of losing jobs are paying down debts, not spending money, and saving more money than they have in nearly a decade. So if people are putting money in the bank rather than the stores, why is the government needing to reassure depositors?

1 comment:

Gordon R. Durand said...

I don't watch TV at all, except sometimes when I go to refill my coffee in the morning it's on the counter there with the sound turned down. But there it was, an ad from the FDIC. Sure enough.

It's as if they're trying to point out that, hey, maybe AFDC increased the poverty rate, CRA ballooned the default rate, food stamps led to dependency, and Medicaid, Medicare, and Social Security are going broke, but hey!

At least one New Deal Great Society program has worked!

So far, anyway. Keep your fingers crossed.