4 ms·
FDIC insurance maxes out at $250,000, so it won't cover you if you're super rich or a foreign government. In that case bonds still make sense. US bonds are curr
by Aunche 6y ago
FDIC insurance maxes out at $250,000, so it won't cover you if you're super rich or a foreign government. In that case bonds still make sense. US bonds are currently more stable and have better interest rates than any other bonds from developed countries, so people will continue buying them for the time being.
- mandelbrotwurst 6y agoThe wealthy generally keep a very small fraction of their holdings in cash, also you can have accounts with multiple banks.
- TedDoesntTalk 6y ago> FDIC insurance maxes out at $250,000 That's PER checking account, and if they are joint checking accounts, then the max is $500,000 per account.
- paxys 6y agoSlight correction – it is for all your accounts at a single institution combined.
- dmoy 6y agoIf we're going to be pedantic, it's per institution per ownership category. So you could have: * individual account * revocable trust account * joint revocable trust account * etc each with a separate $250k limit at the bank (and in the case of the trusts, the limit can be $250k per beneficiary of the trust).
- chaostheory 6y agoFor context, Dalio’s current thesis is that bonds and any debt instruments are dangerous to own right now. Why? Because he thinks the dollar will collapse and lose its reserve status. Uncontrolled inflation is a big danger.
- jl2718 6y agoDefault risk for demand deposits is near-zero: https://fred.stlouisfed.org/series/EXCSRESNS https://fred.stlouisfed.org/series/EXCSRESNS