Raising FDIC Insurance to $250,000 Good for America – by Bryan Dornan
ByRaising the FDIC insurance from $100,000 to $250,000 is long overdue. Adding this FDIC guarantee in the new revived Mortgage Bail-Out Bill is good for business, good for homeowners and good for America. Why hasn’t it been increased in the last 30 years with rise of inflation? Most financial experts would point towards the fact that this is by far the most significant financial crisis since the great depression.
The Chinese define a crisis as a danger and an opportunity. Since we have been borrowing billions of dollars from China, maybe we should heed their language and take this opportunity to rebuild a stronger, bolder more pragmatic financial system that will bolster our economy for future generations.
The mortgage markets need more confidence and they should start with better underwriting of home loans. Stated income loans should only be allowed with strong compensating factors like credit history and assets. FHA has always gotten the underwriting end right and that is why most Americans are turning to FHA mortgage loans for home-buying and refinancing.
Raising the FDIC insurance to $250,000 is the right thing to do and Congress needs to step up their efforts to get something done that is good for business and good for the tax-payers. Whether or not the politicians look good in the process should not be our concern. Then again…it is an election year.
1 Comments
October 1st, 2008 at 7:38 pm
Too risky!!! Come on guys..Hasn’t this mortgage crisis taught you something. This is like a giant “stated” income loan. Pack it up and find a new business selling toasters!
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