Many people wonder what
to do in such a volatile financial climate
such as the one we are experiencing of late. There are various opinions
the are out there as relating to how one should accurately interpret
and respond to the recent shifts in market stability. Given that several
of our largest financial institutions have folded and
others in need of suring up their cash on hand through government loans and investment, it would be safe to say that there will be a new set of rules that would have to accommodate a new global economy. However, we can rely on some basic financial principles that will work during any time.
First, you should keep cash on hand. Saving in your bank is ok.
Congress just increased the FDIC insurable limits on deposits to be
increased from $100,000 per deposit to $250,000 per deposit. Even with
the collapses of Indy Bank and Washington Mutual, any depositor was
guaranteed then $100,000 per deposit and here was no interruption of
those depositors receiving their money.