Pdic May Issue Blanket Guarantee Of Bank Deposits

[Mr Lee]

Does this worry anyone as much as it seems to worry me? This sounds like a fix for a broken system but is it really a fix or just a mask? I believe we all know that it should come as no surprise that the Philippines or any country could never come up with enough money to give all depositors their money if a run on the banks occurred, but a blanket limitless insurance amount,  :cool_beans:   this sounds to me a lot like smoke and mirrors.PHILIPPINE Deposit Insurance Corp. said it would issue a blanket guarantee of bank deposits if the country’s banking system were to be threatened anew – a threat similar to what it faced during the global financial crisis which peaked last year.  According to PDIC president Jose Nograles, the deposit insurer now has the clout to extend coverage of bank deposits from the current P500,000 per bank and per depositor to a limitless amount.  Nograles said that unknown to many, PDIC could now issue a blanket guarantee of deposits to cope with risks threatening the stability of the banking system.  The blanket guarantee is spelled out in PDIC’s new charter, which took effect last year. The country’s banking sector managed to stay afloat during the global financial turmoil last year. But the crisis still poses a threat to stability of banks, which rely heavily on the confidence of the depositing public, Nograles said.  “If such threats present themselves again, then [PDIC] would be able to issue a blanket guarantee of deposits,” he added. Link to this story

[Art2ro]

Let me know if I got this wrong or correct! Sounds kind of iffy to me! You mean, the banks will entice depositors to deposit limitless amounts of cash and issue a "Blanket Guarantee of Deposit" of the said limitless amount deposited, for the banks to invest depositors money as they please? Yeah right! Then when there's a crisis or someone got involved in an investment scheme gone wrong and or looses the depositor's money, then what? How fast will the bank be able to return the depositor's money, since the depositor is holding on to a piece of paper saying "Blanket Guarantee Of Bank Deposit" for P100 million? Print more worthless already devalued pesos unless the yield returns were profitable? Now where's the money? :Policeman::th_goodidea:

Edited July 2, 2010 by MrBBtheFilAm

[Mr Lee]

Let me know if I got this wrong or correct! Sounds kind of iffy to me! You mean, the banks will entice depositors to deposit limitless amounts of cash and issue a "Blanket Guarantee of Deposit" of the said limitless amount deposited, for the banks to invest depositors money as they please? Yeah right! Then when there's a crisis or someone got involved in an investment scheme gone wrong and or looses the depositor's money, then what? How fast will the bank be able to return the depositor's money, since the depositor is holding on to a piece of paper saying "Blanket Guarantee Of Bank Deposit" for P100 million? Print more worthless already devalued pesos unless the yield returns were profitable? Now where's the money? :Policeman::th_goodidea:

I totally agree and that was why I posted it. It seems the Philippines has now gotten the idea from the US who had also changed their FDIC guarantee to $250,000 during the crisis and then they made it per person on the account and per the in trust for persons, so if a person wished to insure all their deposits, all they had to do was add friends and family members names to the accounts for limitless insurance that we all know they would never be able to pay because the US government is so much in debt already. So the Philippines is going to do the same thing to encourage some of the richer people to invest in deposits rather than land, homes and condos and possibly to get the richer foreigners to bring over more money, but anyone who goes above a reasonable amount and makes too large of a deposits into banks has to know that they risk it all no matter what country they are in because most countries that depend on other counties are in financial trouble or will probably be IMO.   :lol:

[Art2ro]

That's why I only stick with the P500,000 cash deposit in my RP local bank and keep the rest in the U.S. or stashed away in a fire and bomb proof safety deposit box! I'm not into spreading my hard earned money around where my wife will have a difficult time liquidating the assets! If I could, I would buy some flawless diamonds and precious metals of gold and platinum instead! :th_goodidea:? right?

[Mr Lee]

That's why I only stick with the P500,000 cash deposit in my RP local bank and keep the rest in the U.S. or stashed away in a fire and bomb proof safety deposit box! I'm not into spreading my hard earned money around where my wife will have a difficult time liquidating the assets! If I could, I would buy some flawless diamonds and precious metals of gold and platinum instead! :th_goodidea:? right?

Nothing is totally safe. During a time when I was in the Pawn business, people who had invested in flawless diamonds lost their shirts because the market fell apart when Russia dumped their diamonds on the market. For the longest time Debeers (spelling) totally controlled the diamond market by buying all the earths diamonds they could, so in effect the cornered the market but the fall of the economy and other factors have made it so diamonds are no longer safe.  As for Gold, I have bought gold and silver over the years and always made some money on them but a person would have to know when is a good time to get out and what currency to cash it into. My thoughts are that silver one ounce coins or common US silver dollars would be the best to invest in because it would be small enough denominations to trade for food should currencies collapse, and in my paranoid state of mind, I feel that is a real possibility with the way the US is spending money at many times what is coming in. Here is a news story that I found interesting What would $13 million buy to show everyone why I feel the US dollar will collapse someday in the near future. Maybe time to buy Australian dollars. Be sure to watch the video within the news story. IMO all bank insurance is, is a lot of nothing.

[Jollygoodfellow]

That's why I only stick with the P500,000 cash deposit in my RP local bank and keep the rest in the U.S. or stashed away in a fire and bomb proof safety deposit box! I'm not into spreading my hard earned money around where my wife will have a difficult time liquidating the assets! If I could, I would buy some flawless diamonds and precious metals of gold and platinum instead! :th_goodidea:? right?

Nothing is totally safe. During a time when I was in the Pawn business, people who had invested in flawless diamonds lost their shirts because the market fell apart when Russia dumped their diamonds on the market. For the longest time Debeers (spelling) totally controlled the diamond market by buying all the earths diamonds they could, so in effect the cornered the market but the fall of the economy and other factors have made it so diamonds are no longer safe. As for Gold, I have bought gold and silver over the years and always made some money on them but a person would have to know when is a good time to get out and what currency to cash it into. My thoughts are that silver one ounce coins or common US silver dollars would be the best to invest in because it would be small enough denominations to trade for food should currencies collapse, and in my paranoid state of mind, I feel that is a real possibility with the way the US is spending money at many times what is coming in. Here is a news story that I found interesting What would $13 million buy to show everyone why I feel the US dollar will collapse someday in the near future. Maybe time to buy Australian dollars. Be sure to watch the video within the news story. IMO all bank insurance is, is a lot of nothing.

Maybe time to buy Australian dollars.

Just so happens that I can help here if anyone wants to buy Australian dollars, just one moment,OK,,,,,, place ink cartridge in printer,align cartridge,press button 3x .......... damn this money business is harder than I thought.:Policeman: