Are Banks Safe?
Picture from ca-bc.com.
There’s a Harvard economist who is pulling about a million dollars out of Bank of America. HSBC has only withdrawn their restriction on large cash withdrawals due to significant customer complaints. The Japanese government is raiding dormant bank accounts. Then there’s nothing like the too-big-to-fail “Great Recession” (which is really the 2nd Great Depression) where banks have failed and the government has had to bail them out. Everyone talks about Depositor’s Insurance, but as the graphic above illustrates, the amount of money insured vastly exceeds required. So Depositor’s Insurance isn’t really something to consider useful. Are banks safe? It seems that lately they’re much less so. I’m beginning to wonder if it’s really worth keeping anymore in them than is necessary. I’ll save the exploration of possible alternatives to banks for a future post.