What the hell are the people in California thinking? Why is there a run on IndyMac Bank AFTER its gone bankrupt and they've lost money. Why?? It was well publicized it was on the verge of collapse. Why the hell would you simply not close the account (or at least have the balance under 100k) and simply put your money in one of the other 8000 banks across this country. Why!!? What's the point lining up at 1am to be the first customer to speak with FDIC. The Bank has already failed. There is no more urgency. If people were concerned about their money, why not withdraw when you had the chance. I hate to say it, but maybe IndyMac was a painful learning lesson in common sense for these people. How the hell did they amass over 100k and not be able to read the writing on the wall. This goes out to WM and WB now too. These banks are probably fine, but why take the chance?
people don't learn lessons, haven't you learnt that, people don't learn shit, they are the same shit they were some 5000 years ago, except now they drive cars and surf the internet you don't need to understand anything about why people do what they do, because there is no way to understand stupidity, people hardly know shit about the economy, so why would you try to understand why they didn't close their account when the bank was on the verge of collapsing if people could understand fuck, why would they give their lives into the hands of a bunch of pathetic morons to run
the general public doesn't watch financial news. they don't read the balance sheets or earnings reports for their banks. i mentioned the imb news to several of my friends and most didn't know what happened. not only that, but some of them never heard of indymac. one of my friends wanted to open a cd with countrywide or wamu a few months ago because their rates were the highest. jesus! i had to talk her out of it. most of the imb depositors probably had no idea imb was on the verge of collapse.
Why wasn't every non-"Aryan" German running for the border in the 30's? Because the alternative was unthinkable for the average person. Don't panic, remain calm, everything's gonna be OK. It's denial.
The average person totally underestimates risk, especially risk of rare events. Why else would people drive without seatbelts, smoke regularly, cycle without helmets, have more than $100k in a single bank account, and other idiocies? "There are only two things that are infinite - the universe, and human stupidity. And I'm not sure about the first one." - Albert Einstein
Not necessarily true. What about businesses who keep $1M in their checking account to make payroll, for example? Should they keep 10 accounts open to manage that risk?
You'd be suprised. *EDIT* Not trying to be smart, but I've seen large corporations keep dozens of bank accounts for the same outlay. Obviously each account is well more than 100k, but the money is spread around nevertheless.
Wasn't Indymac started and run by Angelo Mozilo, of countrywide fame ? One guy who should be jailed for life !