Quote:
Originally Posted by turbo6bar
daepp, why should a person keep funds at a risky bank with piddly interest rates? We aren't talking about high yield bonds with double digit returns. Cash in hand is worth more than a promise from the government.
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FDIC insurance is worth the exactly the same as the promise on the front of the Federal Reserve Notes (cash) you want to pull out of the banks. No difference whatsoever - if one fails, they're both worthless.
Anyone who advocates pulling insured deposits out of banks is an alarmist and contributes to the problem we are facing today - and even though it's cliche, it's akin to shouting fire in a crowded theater!