As long as it's only a few ...

... and they're rather small ...

... the FDIC will cover the account holders and folks with CDs, GICs, etc. - up to certain limits.

I think that it used to be $100,000. but am fairly sure that it's higher now, but someone here will know.

A lot of it relates to those irresponsible sub-prime mortgage loans that many wrote a while ago.

Pay 1.5% or so interest rate on mortgage payment now, temporarily, to be re-negotiated in a few years. In the meantime, the interest rate assessed was 5 - 6% or so ... with the difference being added to the principal of the mortgage!!

When it came time to renegotiate, and the actual rate was to be charged and paid monthly, plus a small amount on the principal ...

... many borrowers couldn't pay it.

So the house went up for sale.

As did hundreds, thousands of others.

Resulting in prices dropping.

And as it became clear that there were many more similar mortgage contracts about to be renegotiated, many would-be purchasers felt that it would be a good idea to sit in the bushes for a while, for when the other houses came on the market, the prices would drop even farther.

My daughter's looking for housing in AZ.

I'm telling her to keep her money in her jeans for a while.

And I'm p o'd at this, for a Canadian bank whose shares I've owned for over 30 years thought those mortgages were legit, so bought a bunch ... and now figure that they're due for some substantial losses.

Plus - they backed an insurance company that backed the insurance on many of those mortgages, so the insurance co. may die.

While the general stock market has dropped somewhat in recent months, the value of my shares has dropped by more than one-third.

I'd more or less like to shoot some of those guys in suits with the shining smile who put those funny-bunny mortgages together.

Anything to make a sale - integrity be damned!

On the other hand, when a person is making the largest business deal of most persons' lives ... it sure makes a lot of sense to check every last detail of the contract with a fine-tooth comb ... and have one's lawyer explain anything that wasn't crystal clear!

[End of rant!]

Good wishes for increasing skill in how to manage your income and assets: it's an interesting hobby. And it pays well!.

No one cares as much about your dollars as you ... except ...

... someone who'd like to shift some of them from your pocket into his/hers.

ole joyful

I guess there's always something to fear.

It's a shame for people to work their whole lives toward retirement and then have to worry about losing anything they've been able to set aside.

If she can afford a house now, why would you tell her to save her money when now is a "good" time to buy while prices are down. We have lost some money in the market too and it mostly has to do with the mortgage loan area but we are not out there pronouncing doom and gloom. At some point the market always rights itself and starts working the way it should be. We are not rich but in the long run, the market has always worked for us. My husband is at this point working on our portfolio and buying and selling stock...but he is only selling to buy more stock and to adjust the portfolio. Those people that are in trouble are people that never should have bought a house in the first place...If you have to think hard about doing something, you probably shouldn't do it...and the constant gloom and doom being mouthed by the Democrats isn't helping matters.

The market was up 416 points today........that's good news and the biggest increase for one day in the last five years...so just be thankful that it was up today...it might be down tomorrow but contrary to what some would have you believe the USA is the best country to live in and we have the best health care and the best of everything..

I totally agree with you ruthieg. This is a great place and we are so fortunate. I like the sound of today's market activity!

When I read news reports on the financial implications of the sub-prime mortgage debacle, I realize the importance of diversification.

Kim