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In what bizarro world should holding cash in a perfectly legitimate bank to earn a negligible interest rate be considered "taking a financial risk" on par with
by bedhead 4y ago
In what bizarro world should holding cash in a perfectly legitimate bank to earn a negligible interest rate be considered "taking a financial risk" on par with like buying crypto or something???
- swatcoder 4y agoThat bizzaro world of deposits bearing risk is the one we’ve all been knowingly living in for the entire history of banking. The FDIC is a modern intervention that protects most personal and small business accounts from needing to consider that risk. Clearly, some people who grew up in the shadow of that insurance protection failed to learn about this “bizarro” world that they lived in and made uninformed choices when they suddenly came into money. But the world never changed, just the naiveté of the people making deposits.
- Ekaros 4y agoSo they are earning an interest? As long as that is above 0 and not negative they should expect that some gambling is going on. After all there is no risk free investment.
- flandish 4y ago“Interest” is not the same as “risk with investment.” You don’t open a savings acct and get told “you could lose this money.” You’re given a sold-to-you contract from the bank for a specific rate of return for the privilege of them being allowed to hold and work with your money. If one chooses to dep >250k - that’s on them.