1/3 the insurance: FDIC protections unchanged since 1980

The FDIC protects up to $100,000 in deposits, right? But did you know that this amount was set in 1980 and hasn't changed (in nominal terms) since?

http://www.cbbwi.com/fdic.htm

Lorna and I just looked this up, and in real terms, FDIC protections for deposits have declined in value by 2/3 since 1980, when the $100,000 insurance rate was set. Today's FDIC protections are worth just $30k in 1980 terms.

On a somewhat-related note: I was talking with an IndyMAC customer last week who said that if you had deposits exceeding the FDIC limit, and you have a loan through IndyMAC, they deduct the excess from your loan amount. Nice of them, if you're in that situation.

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