It's no newsflash that there is a tremendous amount of anxiety and uncertainty in and about the U.S. economy. And there is plenty of good reason for such anxiety and uncertainty. Unfortunately, however, the economic irrationality that accompanies the psychology of economic bubbles also accompanies the pscyhology of bear markets.
Yes, the FDIC will place banks that have mismanaged assets into conservatorship. Yes, banks and investors have and will continue to realize losses due to bad loans and menacing conditions in the commercial and consumer lending markets. But no, the U.S. banking system will not collapse, and the average American's deposits are safe and secure (provided the deposits are FDIC insured and under $100,000 in the aggreggate).
The MSM, however, has created panic by talking about instability in the banking industry and showing the run on IndyMac. Sadly, we live in a country beset by lack of knowledge about macro-economics and micro-economics. And that includes the talking heads on the news.