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Which is not the same as backed 100% by real dollars. It’s just another level of guarantees, just like the guarantees given by Tether. Obviously it’s very reaso
by tinus_hn 4y ago
Which is not the same as backed 100% by real dollars. It’s just another level of guarantees, just like the guarantees given by Tether. Obviously it’s very reasonable to trust one more than the other, but neither are backed 100% by real money.
- gilrain 4y agoA promise from a well known con artist and a promise from a centuries-reliable government aren’t actually usefully similar.
- smt88 4y ago> just like the guarantees given by Tether The only similar is that they are guarantees. The FDIC can't run out of money because Congress would just re-fund it in the unlikely (and extreme) event that its current funding ran out. Bank accounts with FDIC insurance are literally backed by the people who create dollars.
- tinus_hn 4y agoDollars are created by the Federal Reserve, not Congress. Banks are backed by FDIC insurance which, although it has been able to pay each claim ever filed, did get cold feet in the 2015 crisis and obviously does not hold a dollar for each insured dollar. In fact some cursory research shows they hold about $6 for every $10000 and in a major collapse like the 2015 crisis, which could have been even worse, they could very well get in trouble.