this is what happens when you chase a yield

[cbloom]

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A guy that age, who grew up during the Depression, should know better.

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Should know better than keeping his money in a savings account? Old people are very susceptible to meeting a local person and trusting them based on their assurances.

[SlowHabit]

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A guy that age, who grew up during the Depression, should know better.

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Should know better than keeping his money in a savings account? Old people are very susceptible to meeting a local person and trusting them based on their assurances.

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A guy that age, who grew up during the Depression, should know better.

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Should know better than keeping his money in a savings account? Old people are very susceptible to meeting a local person and trusting them based on their assurances.

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FDIC insures up to 100k per bank account [I think a checking and a saving count as two]; you're also insured for another 100k if you open a joint account with someone else. So that means you're insured up to 300k if you have three accounts.

You have 300k+ in cash and there are many other banks around. What's your play?

FWIW, I do feel bad for him. But I'm currently tilted right now because it looks like no one gave him any logical advice on how to protect his money. I probably wouldn't care if he was investing the stock market and lost moneys. But he was investing his moneys in a place where if you do correctly, you're guaranteed to not lose moneys!!@#!@#!!@

[Thremp]

I may have heard this incorrectly. But hasn't the FDIC traditionally returned all the money in all accounts regardless of the limit?

So there's probably a 98+% chance that this man gets his money back?

[ahnuld]

it sucks but the paper is being melodramatic. For a 77 year old, 200k is enough to last a long time. 10k a year in interest and 10k a year from the principle should see him living comfortably until his death. They talk of him committing suicide or whatever, please.

[emon87]

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it sucks but the paper is being melodramatic. For a 77 year old, 200k is enough to last a long time. 10k a year in interest and 10k a year from the principle should see him living comfortably until his death. They talk of him committing suicide or whatever, please.

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It was for his grandkids.

Also, for those of you that don't feel sorry for him because he should have known better... do you have ANY relations with YOUR grandparents? Old people are usually very trusting of people to do their jobs.

[DesertCat]

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I may have heard this incorrectly. But hasn't the FDIC traditionally returned all the money in all accounts regardless of the limit?

So there's probably a 98+% chance that this man gets his money back?

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He is going to get most of his money back from the bankruptcy proceedings, but yes I think you are right, the fdic will cover the rest. BTW the FDIC coverage levels are posted everywhere in a bank.

[gonebroke2]

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it sucks but the paper is being melodramatic. For a 77 year old, 200k is enough to last a long time. 10k a year in interest and 10k a year from the principle should see him living comfortably until his death. They talk of him committing suicide or whatever, please.

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20k/yr to live off of? Property taxes, health insurance, utility bills will exceed that much per yr. Maybe he has a pension plan, if not how is this guy gonna eat?

I didn't post this article for anyone to feel sorry for this guy. Although it does suck to be in his shoes. I just wanted to show that chasing a yield that appears to be a sure thing can turn out badly.

And this relates to current market conditions because of these hedge fund managers chasing high yields on subprime paper. Unfortunately, that paper was marked to model and not marked to market. That is not to say the market cant go up from here. European central bankers said that they are willing to inject an unlimited amount of money into the system to keep things afload. I have no reason to believe the FED wont do the same thing.

[DesertCat]

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And this relates to current market conditions because of these hedge fund managers chasing high yields on subprime paper. Unfortunately, that paper was marked to model and not marked to market. That is not to say the market cant go up from here. European central bankers said that they are willing to inject an unlimited amount of money into the system to keep things afload. I have no reason to believe the FED wont do the same thing.

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Please post a link to the guys claiming there will be a trillion dollars in sub prime losses. I'm trying to read everything I can on that market and I'd like to see where their loss rate estimates came from.

[Thremp]

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I may have heard this incorrectly. But hasn't the FDIC traditionally returned all the money in all accounts regardless of the limit?

So there's probably a 98+% chance that this man gets his money back?

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He is going to get most of his money back from the bankruptcy proceedings, but yes I think you are right, the fdic will cover the rest. BTW the FDIC coverage levels are posted everywhere in a bank.

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But that was my point... They post em'. But it doesn't matter since they've covered every single dollar in every situation IIRC.

Though what he did was pretty dumb.

[DesertCat]

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But that was my point... They post em'. But it doesn't matter since they've covered every single dollar in every situation IIRC.

Though what he did was pretty dumb.

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And they put them on almost every scrap of paper they mail you as well.