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Cake day: June 9th, 2023

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  • I saw the same banner on my bank’s website the other day, and also wondered what the “full faith and credit of the US government” might really be worth in the near future.

    If the FDIC goes away, then the question is which bank will be less likely to suffer a bank run. That is really hard to predict, since it is all about consumer confidence and marketing perceptions. Is your local savings-and-loan safer because they are stable and boring? Or is a huge national bank safer because it’s “too big to fail” and more likely to be bailed out in a crisis?

    The best bet is diversification. Spread your savings among multiple banks, and consider putting it in things other than US dollars: real estate, gold, foreign currency, etc.