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Does the average consumer have uninsured deposits?

• dmoy 8y ago
  If we're talking about bank deposits in the US, no. The median household has drastically less than 250k total
  • denimnerd42 8y ago
    it's 250k per account so.. no one should have uninsured deposits
    • Mirioron 8y ago
      But if the system collapses, what's the chance of actually getting the value of your money back?
      • JamesBarney 8y ago
        Pretty good. Its insured by an entity that can literally print money.
        • Mirioron 8y ago
          Yes, but if they print money then your $100k will be worth less than $100k. This is why I asked about value. People saved to buy an apartment towards the end of the Soviet Union. When the Soviet Union collapsed they could barely afford a car for the saved money.
          • cm2187 8y ago
            You don’t need for the financial system to collapse for inflation to eat into these deposits. Even target inflation (about 2%) eats these low yielding deposits over the long term. And the never ending increase of public debt will result in high inflation at one point. My point being that if you have $250k in savings, it probably shouldn’t sit and melt on a savings account.
          • JamesBarney 8y ago
            Usually a bank run will involve people hoardong money, and run away inflation is caused by people spending money as quickly as they get it.(is a rapid increase in money velocity and the other a rapid decrease). So these two forces should counteract each other.
        • A2017U1 8y ago
          The Venezuelan government can print money too. I really doubt people who get the the face value money back while the value of the money plummets are going to be fooled. How many people will like the price of petrol and iphones doubling overnight?
          • acct1771 8y ago
            All of the people that can already afford 15 each of those everyday items won't mind.
• metanoia 8y ago
  On paper, no. We're all insured by the FDIC/NCUA up to $250k per institution (or account? I forget). In reality, I think the systemic risk means everyone has deposits on the line as the FDIC can't cover multiple bank failures.
  • JamesBarney 8y ago
    If there were multiple bank failures the treasury would loan the FDIC as much money as needed to cover it.
    • caprese 8y ago
      under what provision? pure discretion? has this ever been tested? in 2008-2010 the FDIC got on the phone and brokered sales of smaller banks to large banks, specifically because they needed to do their part to stave off disaster with their thin credit line. Congress didn't ask them to do this, they just got on the phone because they had live capitalization ratio data.