I am getting very tired of candidates from both parties making statements that are either partly wrong or out right lies and not being called out on them. Kasich said that if a big bank was failing that he would, as President, bail it out to "prevent mom and pop's savings from being wiped out". As I understand it all banks have government deposit insurance to protect savings up to $250,000. If you have accounts in multiple banks, you could be protected for millions in savings. Further, how many families (mom and pop's) have more than $250,000 deposited in a bank? Not very many! If you had more, when a bank fails, like a bankruptcy, it is not a 100% loss. In the worst case, you could lose no more than about 10% on your deposit over $250,000. Why isn't this fact pointed out or why is the public so stupid that they don't know this. Kids should learn this in their freshman year of high school.
When Kasick said that "mon and pop's savings" would be wiped out, it was total BS.
PS--The only reason that banks needed government money was that the government changed the rules and required them to hold larger reserves. As it turned out they had enough reserves to handle the crisis. They have now all paid the money back with interest. It was all just political smoke and mirrors.
I was just reading that 50% of households can not raise $5,000 cash in 24 hours. Does that tell you something about how a big bank failure would affect them?
When Kasick said that "mon and pop's savings" would be wiped out, it was total BS.
PS--The only reason that banks needed government money was that the government changed the rules and required them to hold larger reserves. As it turned out they had enough reserves to handle the crisis. They have now all paid the money back with interest. It was all just political smoke and mirrors.
I was just reading that 50% of households can not raise $5,000 cash in 24 hours. Does that tell you something about how a big bank failure would affect them?
