The credit card debts people are incurring are listed as assets on the balance sheets of the banks. Then derivatives and futures are calculated based on those assets (level two and three assets).
Short answer, this makes me worried about the banking system. I wonder if people realize that only $100k of their money is FDIC insured if their bank collapses. I also wonder if people realize how easily the system can be manipulated when it is already teetering on the edge, as it is now.
I don't see these economic woes improving any time soon. People are going to have some interesting decisions to make.
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