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> You just described the modern banking system. Yes, the government will give you guarantees for your stored funds to some extent, but when shit hits the fan, y
by dragontamer 3y ago
> You just described the modern banking system. Yes, the government will give you guarantees for your stored funds to some extent, but when shit hits the fan, you are on your own (example 2008 financial crisis).
How much money did your savings account lose in 2008? Or your checking account?
- nostrademons 3y agoMoney market funds broke the buck in 2008: https://www.investopedia.com/articles/economics/09/money-market-reserve-fund-meltdown.asp https://www.investopedia.com/articles/economics/09/money-mar...
- dmoy 3y agoDude One money market fund, which was a tiny tiny percentage of overall money market funds, broke the buck by like 3% Also money market funds aren't insured (typically) Also, money market funds for sweep now have much stricter regulations to prevent even that from occurring again.
- dragontamer 3y agoCool story bro. But answer my question. How much money did you lose in your SAVINGS account, or CHECKING account? Don't move the goalposts on me. I know what you are trying to do rhetorically.
- dig1 3y agoWrong question. Ask yourself how much value your saving/checking account lose in 2008. Check DXY history for that.
- dragontamer 3y agohttps://www.bls.gov/opub/ted/2009/jul/wk2/art04.htm https://www.bls.gov/opub/ted/2009/jul/wk2/art04.htm CPI was deflation for June 2008 to June 2009 yo. Whatever cash you had that year gained value, not just from interest rates, but also from deflation. -------- I dunno why you'd pick DXY when CPI or PCE are far more well regarded measures of price fluctuations.