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It is interesting to talk about the billion dollar write downs of banks but when things hit home I can tell you it feels rather different. 
Most of my accounts are in E*Trade, whose stock today has been halved. One analyst thinks this company has a 15% chance of bankruptcy. Now I know that in case of bankruptcy it is likely that the client accounts will simply be taken over by a buyer, and if not, that there is FDIC and SIPC protection. But getting your money and stocks can take 1 to 3 months in case of SIPC protection, and these stocks cannot be sold in-between.
Just changes the perception of things a bit when one has to start thinking about FDIC and SIPC.
Most of my accounts are in E*Trade, whose stock today has been halved. One analyst thinks this company has a 15% chance of bankruptcy. Now I know that in case of bankruptcy it is likely that the client accounts will simply be taken over by a buyer, and if not, that there is FDIC and SIPC protection. But getting your money and stocks can take 1 to 3 months in case of SIPC protection, and these stocks cannot be sold in-between.
Just changes the perception of things a bit when one has to start thinking about FDIC and SIPC.
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