Market Updates and Info

There have been some significant changes in the market recently. The FDIC has been proposed to raise the limit of insurance from $100,000 per depositor to $250,000. The proposed amount is the amount that the government agreed to insure money market accounts for just recently. The last change in the FDIC insured amounts was over 28 years.

This week I am being asked. How does this help me? Will this help the market?

In regards to the first question my answer would be no. The recent changes do not help the average homeowner who does not have 100k-200k in their banking institution. It will help many larger companies who are scared with the markets conditions to keep all of their money in one institution and make it easier to make payroll.

The main reason for this change in my opinion is to alleviate some of the stress and panic that is striking the average American that has money in their local lending institution. I think this will also stop some of the speculation that has been driving the roller coaster market recently.

As you know I do not try to dwell on the negatives of the market. The main reason is I don't have any control over the market and couldn't change it if I tried. Most of us in the real estate business are in this for the long haul so we might as well make the best of a bad situation.