Not necessarily. If there's a joint holder on that CD it's covered up to $500K. If not they can still get the balance ($100K) back or a percentage of it when the Feds sells off the assets.
it may become a very large mess if a recession/depression hits , the debt ratio to gdp was 124% in 2022, servicing the national debt becomes more expensive as interest rates rise, more than 12% of gov spending goes to this and is on the rise, recession means less $$ coming into the fed government, many yrs of bad fiscal mismanagement, this goes way back to the Reagan admin selling the public on "deficits don't matter" well for yrs gov spending accounts for an increasingly bigger share of the gdp and a lot of that is funded by borrowing - relatively cheap when interest rates were low and interest rates were kept low by fed monetary policies, it will be difficult to avoid a full blown recession if interest rates keep rising.
People have always been maxed out on credit. Sorry but I'm sick of catering to those who are irresponsible and can't control their spending. As I've said before unless you've fallen on hard times (medical, divorce etc) I have no sympathy that they ran up their credit cards going to Starbucks, new phones, etc and all the other "wants" not needs. Everyone is mad about bailing out banks with taxpayer money yet we continue to do this (bankruptcies) for those who are reckless with their money.
That's one thing they (the Fed) needs to be careful of is creating a depression. They waited way to long to start raising rates and now they're in a bind. Raise them to high and to fast and they'll created another '08 scenario, but they still need to go higher. Don't raise them enough and we continue to have high inflation and as we can see all these rate hikes have done very little to bring inflation down. Why these fools still have a job is beyond me! ?‍
Interest rates of 6-7% are not uncommon and won't be the end of the world but it'll take time for those who aren't use it them to adjust. Whats sad is everything is WAY to political and it just washes, rinses and repeats when the next administration comes in.?
I don't disagree with the general sentiment but challenge the assumption that the fed knows what to do... The fed is telling us we are not in a recession... The fed was saying it's transitory inflation... At what point do you think this fed has a grasp on the issues. When politics are guiding decision making processes.
Oh I don't for one minute think the Fed knows what to do. IF they did this would've never happened and they would've/should've starting raising rates years ago. Even Janet Yellen said something like "I messed up and didn't see this coming" a year ago. Yet she still has a job! The Fed (whether some want to believe it or not) has to many political ties and needs to be abolished. IF they were so good at their job we wouldn't be in this mess right now or on the past.
Trying not to get political but it's predictable that politicians will seize the day and proclaim that more tax cuts will fix the problems - another patch that has proven to yield only short term relief. Agree with Dave the country as a whole has been living beyond it's means, enabled by increasing levels of borrowing, the debt is a result of wars, ill advised tax cuts, stimulus funding, bailouts and in general out of control federal spending. Economists who warned about the debt levels decades back were scorned same as politicians who warned fed debt posed a risk to national security .
She's an idiot and shouldn't be in control of a lemonade stand!
Quite honestly, I don't think that was a totally unreasonable statement. But just like when you "idiot proof" something, you get a bigger idiot. In the banking world, greed is an incredibly powerful motivator and so the safeguards that have been put in place people eventually figure out how to get around and you get stuff like this. Rinse and repeat.
There's to much money at stake and these traders are just kicking the can down the road and trying to avoid the inevitable. This is going to make things so much worse than if they just let things happen naturally. We've technically been in a recession since last spring and if they just called it one like they've done in the past we'd most likely be on our way up now.
I think what's really BS is the Fed helping these banks out again. So you're going to let banks recklessly invest then reward them with another bailout? While this is a plus for thier customers it does nothing to punish the banks. You're right something is broke...our whole system!
just a personal opinion but I think it may be prudent for the Fed to pause another rate hike this qtr and see what happens, there is some downward pressure on prices, simply because people are increasingly tapped out in either savings or credit , the supply chain has gotten healthier but companies are reluctant to drop prices - most are still very profitable as consumers thus far haven't markedly changed their spending.Another huge problem is the market manipulation that's been going on. In all actuality the market should've opened up 500+ points down yet it was up 200+. ?‍
Tomorrows CPI numbers will be a telling sign. I wouldn't shock me if it was 7%. I think and hope the Fed raises rates again and from what they've been saying they're serious (this is my serious face?) this time.
Here's the latest speculation of what they think will happen.
https://www.barrons.com/articles/fe...t-pricing-banks-crisis-bdf36246?siteid=yhoof2
I see where you're coming from but peoples personal debt is (mostly) their own fault. Most live WAY beyond their means and have a hard time defining wants and needs. My ex was a classic example. She always would say "I deserve" this or that which most times were something materialistic and expensive. Which was why she was thousands in debt with cc and always behind on her bills. Heck look at todays stock market. By all rights it should be in the red but it's not. Why, people people love bailouts! ?‍
