Thursday, August 11, 2011

It happened to us, our bank was just "closed" by the FDIC. Shades of the depression

It's one thing to hear about high unemployment, riots, and bank closures.  It's quite another when it happens in your sleepy town of less than 2,000 people.  I was in the doctors waiting room yesterday when two older people started talking about all the excitement that was happening today in our town.  I asked what was going on and they told me that one of our three local banks had just been shut down by the FDIC (bankrupt in other words). 

This, by the way, is not just any bank.  It's OUR bank!  We are lucky because our branch is staying open after the FDIC forced another bank to buy it.  So I can still get our money.  Other towns are not so lucky.  Several branch offices had been forcibly closed without any notice.  In those towns that was the only bank available and people either have to drive an hour or more to empty their accounts or make "appointments" to get their safe deposit box contents.  The employees are now without jobs in an area where jobs are precious few.  And whats even worse.  Every employee lost all there retirement!  Every cent they put in is gone!  One lady was a month from retirement and now all that hard earned money is gone.  I cannot imagine the devastation they must be feeling.  Right now at our branch is an FDIC official and sheriffs deputy to "keep the peace".

Is the edge of the storm over us now?  Are we starting to feel the first few freezing drops of rain that heralds the downpour?

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