Ireland, Greece governments have both announced that all banks deposits will be government insured. Now Germany has announced the government guarantee of 500 billion in deposits of Hypo Real estate Bank. So much for coordination between governments. With USA banks having close about $1.7 trillion in uninsured deposits that are facing withdrawal; it can’t be more than a few weeks away that the next round of major stress hits and requires the government to raise insurance limits from $250,000 to unlimited; at least for some period of time. Let’s hope the government can start looking forward enough to get ahead of the panics and start proposing solid methods to jump start the credit markets and calm the negative psychology of the USA market that has now spread world wide.

“BERLIN/LONDON (Reuters) – Germany said on Sunday it would guarantee more than 500 billion euros ($693 billion) in private deposit accounts to protect savers from the worst global financial crisis since the 1930s.

Fellow European Union country Ireland last week promised to guarantee all deposits in its banks, prompting some depositors in Britain to move savings to branches of Irish banks and drawing criticism of a fragmented EU response to the crisis.”

Click here to read the full article at Reuter’s.