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As I said, if you want to secure your deposit, use a 100% deposit bank that gives no interest and charges a small storage fee. What we commonly call banks aren
by stevedekorte 18y ago
As I said, if you want to secure your deposit, use a 100% deposit bank that gives no interest and charges a small storage fee.
What we commonly call banks aren't - they're investment houses - and very highly leveraged ones at that. And what we commonly call deposits aren't - they're investments and no investment is a sure thing. Any system that pretends that there is a sure thing will fail sooner or later and the bigger the system the more catastrophic the failure.
- 0x44 18y ago(T)hey're investments and no investment is a sure thing. That's why your "investment" in the bank is insured.
- stevedekorte 18y agoThe so-called insurance is a promise by the central bank to print money to cover your deposit. That is, to steal value from everyone else holding cash in order to pay for the losses of those that choose to invest theirs unwisely. It's not like an insurance company that keeps enough real cash reserves to cover potential costs. For example, the FDIC only has enough in reserve to cover ~1% of the deposits in US banks.