5 ms·
Based on past examples… bank runs can be kind of contagious. “What if my bank collapsed?” may be a fleeting thought, but it’s also pretty easy to withdraw some
by techdragon 4y ago
Based on past examples… bank runs can be kind of contagious. “What if my bank collapsed?” may be a fleeting thought, but it’s also pretty easy to withdraw some cash “just in case”… if the situation escalated and there’s any genuine fear, the example set by anyone not getting all their money out of a collapsing bank incentives anyone who succumbs to the fear of loss with respect to the idea their bank may too collapse, to go and try to withdraw most of their money… and it becomes a bit like a snowball down a hill as more people have trouble… The FDIC are nominally to protect against this but the statutory deposit protection limits aren’t worth as much as they used to be… thanks to inflation and changes in housing market values.
- busterarm 4y agoThis is why I recommend to people to park your money with entities like NFCU, PenFed or NASA FCU if they are available to you (and at least one of those likely is for most Americans). If things start to go south, government employees and the military are still going to get their money.
- HWR_14 4y agoGovernment employees and the military are specifically the people who don't get paid in certain cases, for instance in a government shutdown. I don't think they are as protected a class as you think.
- busterarm 4y agoThat's their paychecks, not their savings. There's a big difference between the two and the attitudes around them. The paychecks always come eventually...or else.