Why I took my money & ran.
A couple of months ago, Wachovia bank posted a loss of $9bil. I didn’t follow the story enough to know whether it was a cash loss or a write-down of bad debt, but either way that’s a lot of money. The FDIC sounds like a suitable institution under normal circumstances, but I am somewhat skeptical of its effiacy should some of the larger banks buckle. Given our government’s propensity to borrow excessively to fund unnecessary shite that has very limited return on investment, such as bailouts of investment institutions or, say, war; I am uncertain the US can put cash in place to prop up investor money for large quantities of people*.
I moved my money to PFCU - a federal credit union. I’ve been long-dissatisfied with my money being part of a large pool that’s bandied about by wealthy folks indifferent to my needs. I’m now quite satisfied to have my money in an organization in which its board is elected by its depositors, and is by mandate designed to serve its depositors. I’m not suggesting you do the same.
With the following article, I’m glad I saw the writing on the wall.
http://consumerist.com/5055292/now-that-the-largest-bank-failure-in-us-history-is-over-is-wachovia-next
