3 ms·
Regular folks do not put their life savings into currencies or commodities. They put their life savings into banks. What planet are you from? On my planet, re
by cmccabe 14y ago
Regular folks do not put their life savings into currencies or commodities. They put their life savings into banks.
What planet are you from? On my planet, regular folks put their savings into 401k accounts, which invest in stocks, bonds, and sometimes commodities. If you do choose to keep your savings in a bank, you're investing in a currency (probably the US dollar.)
Instead its an trust relationship between the bank and the bank customer, like a contract.
Nope. Actually it's a trust relationship between the federal government, which insures your account up to 250,000 through FDIC, and you. You also have to trust that the federal government isn't going to inflate away your savings (spoiler alert: they are going to.)
- belorn 14y agoI guess it depend on where on the planet one is (or maybe its on the not-the-usa-planet). I am not sure banks where I live even have anything called 401k plans. They do have stocks and bonds, but its not something commonly talked about. pension savings are done mostly through tax but in rare occasions, addition money is added by the place you work from. In very extreme rare occasions, people sometimes add personal savings to it.
- cmccabe 14y agoEven if the government manages your pension funds, they're still going to be invested in stocks and bonds, ultimately. Having a savings account is just about the dumbest thing you could do right now, since the rates are essentially 0%: http://articles.boston.com/2012-10-01/business/34178552_1_interest-rates-low-rates-average-interest http://articles.boston.com/2012-10-01/business/34178552_1_in... Yet they still have the audacity to ask me if I want to open one every time I visit the bank. It must be hard keeping a straight face.