Sunday, October 12, 2008

Who To Bail Out The Governments?

The FDIC, the entity promoting public confidence in the US financial system by issuring deposits is now, itself facing some headwinds. Their reserve ratio has fallen below their target of a reserve ratio of 1.15 %! This shouldn't be surprising given the enormous number of bailouts they have been doing. (See article).


Based on the article published on ChannelNewsAsia regarding Singapore's SDIC ( equivalent of FDIC), " the goal is to hit $120 million by 2016......reserve ratio of 0.3 percent". OK, 0.3 percent? Thats lower than FDIC's reserve ratio.

SGDividends has full faith and confidence in our government, honestly, and with FDIC having a reserve ratio of 1.01 percent, way higher than our 0.3 percent ( based on 2016 target forecast..we are not able to find the current ratio data).

We think the financial system in USA ( world) should still be ok. Relax..don't panic and let's ride it out in style.




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