An Opinionated Request Regarding Financial Panic
Washington Mutual was killed this week with the immediate cause being a run on the bank by panicky customers (though arguably doomed by long-term causes). $16.7 billion were withdrawn in 10 days. WaMu was my bank and the bank used by a lot of people I know. Some withdrew all their assets this week after reports surfaced that WaMu was failing.
If this kind of thing continues to happen, the best response is not to withdraw all your money and sock it under your mattress. Your bank account is FDIC insured up to $100,000. To be safe, don't keep more than $100,000 in any one bank, but do give the system a fighting chance to recover too.
Also, I know the SEC has already cracked down on shorting financial stocks, but anyone who's out there shorting anything domestic and trying to make a bundle off the current state of the economy, give it a break.
» An Opinionated Request Regarding Financial Panic
26 September 2008 at 9:44pm
[...] WordPress Blog wrote an interesting post today onHere's a quick excerpt Washington Mutual was killed this week with the immediate cause being a run on the bank by panicky customers (though arguably doomed by long-term causes). $16.7 billion were withdrawn in 10 days. WaMu was my bank and the bank used by a lot of people I know. Some withdrew all their assets this week after reports surfaced that WaMu was failing. If this kind of thing continues to happen, the best response is not to withdraw all your money and sock it under your mattress. Your bank account is FDIC [...]