Yesterday’s missile from John Mauldin [1] delivered another dose of concern with how the banking system will face its present challenges. In particular, he is worried about whether the FDIC will be strong enough to cover losses to all the bank deposits it insures. At the same time the WSJ posted a report [2] celebrating new ways that an individual investor can optain FDIC insurance on millions of dollars of CDs bought at one institution. Those two stories taken together sound like the scenario where an irresistable force meets an immovable object.
