REI Wealth Monthly Issue 09 | Page 36

THE CREDIT CRISIS: INVESTMENTS ON A TIGHTROPE WITH LESS SAFETY NETS RICK TOBIN The most important factor for real estate is related to the availability of capital in order to get in, and to get out of the investment The history of the FDIC “safety net” The Federal Deposit Insurance Corporation (FDIC) Shortly after the creation of the FDIC in 1933, was created back in 1933 after the collapse of certain bank accounts had coverage protection of almost 9,000 banks in the first few years of The up to $2,500. In 1950, insurance limits rose to Great Depression (Oct. 29th, 1929 – NL?JK?B?? L ?[?HZY NM??H?P?[??\?[??B???P??\??Y?[?[H?X]Y\?\??H?\??8?$??[Z]??XX?Y MK ?X?]\?[??X\?Y???XY?[X?? NL?? \?X??\?\?H?\X[Y?? ? [? NM?K?[? NM? H?P?[??X\?YZ\????X??[? NNNH?X?[??Y?[?????\?]H[?????\?Y?H[[?[??? ?[??P?[Z]??H[??\?[??H[??X?\?]Y\?[?\??Y\???K[???[??X\?Y? L ?X??[? NN ?[??X?[????\??\?Y??Y]?]?H\??][??\?[??B??YX\???P?[??\?[??H[Z]??XX?Y\?Y?\?????[H[?X\??X?\?]??X?[??\?YH?[??? ?L ?????[??[???\??Y\???&H?X??[??[??]?[???X???[????H?P?[?H?]?[???[??[???Z[?]??H???YX\??H[? L HYX\??X]??\?\??[?\?H?\????X?H?X??[? NL??[???'?[???[???'H?Y?[??\[??H[?H?XYB??\?\??YKX[?H?[????Y?[???[??????\??[?\??\??Y\?????[???[?\???Y]?]?[Z[?\??[??H?[[?\???[?H[?B??\??X??[H[?]Y]8?&\?H??\??[Y?H?]??[[^H?]?\?[???H?YY ????[??H?\??H?Y]?\?\?H\?XZ????[?[??X[[\??[?]?[?\?H[?HT?H???X?H[?H]H NN ???Y?HZY NNL???X??[?H NM??[? NM??H?\?HY??\??[?Y?H?[Y\?X?[???????YZ\?[?^H?\??\?H?Y\????HZ\???[?]?[???[??[??? ? K?]?[??Y??[??[???\??Y\??\?Y?X\???[]]?[H???]\???]\???Z\??]?[????Y??[???\??Y\??Y??]?H???Y[??H]?Z\?[?^H??[?H?Y?H?]Z\???[?[????[?? [?^H??[?H?[?][???[??Z\??\?[?]\?[HX?H][?\?Z\??X]?\??\?]?YK?[??\??Y[Z[??H\???X?\?HX?\???YH[?H[???\?Y??\?[??Z\??X??X\??[?[?YZ\?[?^H\?K???YK[?^H?\???]\?[H?????Y\???Y? ???\??]??]? ?8?&\?X[?H[Y\?X?[???[????Y[?X??]H?[]]?H?Y?]H?\?B?[??\?Y[??YH?H^\?[???Y\?[?]?[???[??[?[??\?[??H???][? ??P?K???