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In case of a financial crisis the big 4 banks are going to get bailed out. Credit unions and local banks maybe.
by rapsey 10y ago
In case of a financial crisis the big 4 banks are going to get bailed out. Credit unions and local banks maybe.
- jdietrich 10y agoBailouts are irrelevant to ordinary customers, what matters is that your account is insured by FDIC or NCUSIF.
- tomohawk 10y agoIt's more likely that the big banks will be bailed in, not bailed out. Which means your money is less safe there. Also, credit unions have a different insurance scheme than the banks, which insulates them from this. Finally, credit unions are more aware of possible jeapardy, and so tend to act more prudently.
- mijoharas 10y agoSorry, I don't understand, what do you mean by "bailed in"?
- lolc 10y agoA bail-in is when savings are used to finance the bank or the state by turning them into illiquid debt, bank shares, or when they are simply forfeited. This happened in Cyprus in 2013 for example.
- XorNot 10y agoIf this ever happens in the US it really won't matter where your savings are.
- jessaustin 10y agoIn USA, if savings are under your mattress, they are protected by 2nd Amendment...
- detaro 10y agoNot against being made worthless/illegal to use.
- clort 10y agoThis is merely false bravado in this day and age. The police can take your money, if they suspect that it is proceeds of a crime. Lots of money under the bed sounds like proceeds from a drugs deal! You can take a few of them down with you, but it won't end well for you..
- kevin_b_er 10y agoAs the 4th amendment against seizure of your money is no longer being protected (see: "Civil assert forfeiture"), know that the police may steal the money under your mattress and murder you for attempting to exercise your rights.
- occamrazor 10y agoThat the bank's creditors have to bear (a part of) the losses.