When you make a deposit, you’ve loaned money to your bank. It’s their money now, and you are merely an unsecured creditor.
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And mostly at the bottom of the pack to collect if they go insolvent.
Worse still, they are allowed to loan out 90% of what you deposit to someone else.
When you borrow money from them for a house, they then take the fees, and dump the liability on Fannie Mae or Freddie Mac.
Great racket if you can get away with it.
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Except you’ve got reinsurance, in the form of the FDIC. If you’re smart that is.
Posts like these on this board are generally the precursor to some pump-and-dump announcement to buy a gold coin or some such alternative currency.
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First, the FDIC only has 1.35% of the accounts it insures. Second, they don’t insure your purchasing power. They simply return paper notes to you. Purchasing power just keeps going down.
I’ve never seen that. I’d have probably bought the gold coins. Alternative currencies (assuming you mean Bitcoin) are a scam IMHO. Bitcoin is up today, but still a scam IMHO.
