We’ve not been posting much economic data because we’ve been captivated by the banking system and FDIC insurance coverage. Have you ever wondered why FDIC insurance coverage isn’t adjusted for inflation?
Historical FDIC Limits
FDIC
| Year | FDIC Coverage Limit |
| 1934 | 2500 |
| 1935 | 5000 |
| 1950 | 10000 |
| 1966 | 15000 |
| 1974 | 40000 |
| 1980 | 100000 |
| 2008 | 250000 |
The table above shows the historical FDIC limits and it’s notable that in 2008 the FDIC coverage limit hit $250,000 and it has stayed there despite inflation over the past 16 years.
If you’re curious about what FDIC coverage should be after adjusting for inflation, it’s around $375,000.
Why Does It Matter?
That’s the multi-trillion dollar question that we are researching right now and the reason behind it is because we think we’re finally approaching commercial real estate critical milestones around debt, refinancing and defaults.
Hopefully, we’ll have more later on this topic so stay tuned, stay profitable and stay solvent….