Local Banks Under Stress
It's been a while since we had to worry about the banks, but the last eight weeks are reminding me of 2008. Back then, it was the investment banks on edge - Bear Stearns, Merrill Lynch, and Lehman Brothers making headlines. This time, its our local/regional banks under stress.
The purpose of this blog post is to bring attention to this slow-motion crisis so you have time to take action if needed. I would take a look at my balances in my accounts and become familiar with FDIC limits. For months I've been preaching about money market rates, which are now pushing close to 5%, as a great alternative to bank deposits paying next to nothing. For many people, this is an exellent alternative to consider. Please call the office to talk it through.
Next, pay attention to your bank's news and stock price. If the stock is tanking, the writing could be on the wall. Right now the beast inside the market is searching for its next victim. Don't let it be your savings account!