Beware of Zombie Banks!

I'm doing it. I bailed on the stock market and went to cash earlier in the year and only had very small losses for 2008. Now my cash has gone to the bank in FDIC insured CDs. They still pay 5% risk free anad guarnateed for 5 years, so rates have not come down - yet - in a zero interest enviroment! As a net saver with no other debt than a small mortgage and tons of equity in my house, this may be my only chance and getting something of my own 'bailout' in this deal!

Frankenstein, the mummy and dracula are back to suck our money from our accounts. I wonder how stupid people will be after all this struggle and scandal

ONE WAY OR ANOTHER THE NEW ADMINISTRATION WILL BAIL THEM OUT......IS THAT A PROBLEM? ANY THING CAN BE SORTED OUT......TO MAKE IT BETTER........WE SEE ANYTHING NEW YET....WITH THE NW POLICY AND NEW IDEA, NEW SOLUTION IN 21ST CENTURY.........SOTHERE IS A PROBLEM THERE IS A SOLUTION TOO.....SIMPLE AS THAT.........

I guess CD's and Money Markets will be the new subprime bubble. So, in about 7 years, will we be bailing them out next?

BIG BANKS ARE ALL ZOMBIES THE ONLY REASON THEY ARE RESSURECTED BY THE $ 700 BILLIONS BAIL-OUT.....SO I CALL LIFE AFTER DEATH.......BIG BANKS NOW ARE STRONG......SAME SOLUTION CAN CAN BE APPLIED TOO TO THE SMALL BANK......ANYHOW THE PROBLEM IS IN GENERAL ARE DEBTS.....SO MONY CAN MOVES A MOUNTAIN...BAIL-OUT TOO...I DO NOT LIKE IT BUT IT HAPPENED........WILL IT HAPPENE AGAIN....I SAY YES.....THE BIG MAN WILL PRONOUNCE IT.....WITH ADDITIONAL CAPITAL PLUS GUARANTEE....NO CHOICE....CHECK MATE........THAT WILL BE THE OUTCOME.......CHECK MATE....

All this gloom and doom fits right in to the Obama Plan. Just give up now and they won't have to fire a shot?

We need to bailout out of iraq. Now that we have less boredom state-side, we should stay out of the bombtossers business

This article is just plain wrong. All kinds and sizes of banks are eligible to receive capital, liquidity facilities, and increased FDIC protection. Put your money in a public bank and watch it's financials, or you can go to http://www2.fdic.gov/idasp/main.asp and look up call report info for any FDIC insured bank. Look for a Tier 1 capital ratio above 10 (higher is "safer"). Small banks should consider a class action libel suit against Kedrosky and Lacy. They are basically yelling "fire" in a full theatre here.

Cash goes back into equities when everybody and his kid brother says just the opposite. There's been a dead cat bounce in the market of 20%, so on the inevitable pullbacks, high yielding stocks in staples like JNJ and MO etc yielding 6-9% deserve a one percent investment every two weeks for the next year or two. I can't call the bottom, but when everybody is pulling in one direction, you buy a bit at a time. Buffet says buy when others panic. This is the time.

People are not the stupid ones here getting 5% FDIC insured is great, even better is 7% dividend from blue chips, when the price recovers and dividends go "up" to say 2%, you will possibly getting 15% on your investment along with the appreciation! Ye ha Once in a lifetime

Buying AA MSFT INTC Verizon MOT RIMM S T GT GE DD DOW KFT JPM MS etc good buys folks no matter what happens later

Hey Bob, dont forget that gloom and doom was brought by the bush (stinks) administration. the worst presidents that ever lived. republicants are all jesus juiced up

I remain aghast that nobody has been commenting on the huge billions of criminal purpose "loans" made by the banks to finance "stock buybacks" which have reduced the Net Tangible Equity of vast swaths of formerly great American companies to severe deficit, i.e. de facto bankrupt status with only some paper filing, of the same facts that they disclose in their SEC financial reports, with the bankruptcy courts to complete the wipeout of cash paid public stockholders. Those "loans" in anticipation of bankruptcy make the goosing of housing costs via the Real Estate Bubble pale in comparison.

The derivative is negative. i.e. Things are getting worse faster. Will income re-distribution save us all, oh Barack, oh choosen one?

all day long. give me the highest rate and I know I cant lose when the bank fails because the cd is FDIC insured. The higher the rate offered for cds, the more likely to fail. Amtrust, GMAC, Mesa, Magnet

The govt. doesn't have deep eneough pockets to bail everything out indefinitely. They will go broke, or print unlimited "money," which will cause the dollar, then most of us, to go broke as well. Foreigners may stop lending us money for Treasuries.

Where is the regulation? Where has it been? But as soon as you regulate this industry people will cry socialism.....capitalism doesnt work due to the human factor.

Don't fool yourselves;Noboby bailed out WAMU shareholders.So nothing is a guaranteed bailout except uncertanty.I hear SEC is going to rescue MADINOFF victims,whynot WAMU /FDIC victims?Sees nothing is fair or certain.

CD's are great, until mild deflation turns to hyper inflation, and your money is locked up, depreciating like the worthless paper currency it is denominated in. My advice is stick to short term (

This guy is an idiot. All banks are audited by either the state or FDIC at least once a year. Once a banks capital falls below 6% of the loan portfolio, the regulators step in and try to arrange a merger with a stronger bank. Once a bank's capital falls below 10% of the loan portfolio, it is not "well capitalized" any more and does not qualify for broker CD's. Based on this guy's analysis you would think the banks are flush with cash. Of course anybody is an idiot to go on line and sink $ in a CD without doing their due diligence on the finanical condition of the bank or even if the bank legitimately exists. Next time, get somebody to speak that is educated on the banking system and not some "Blogger".