Look at that chart.
Think a Cyprus-like incident can't happen here?
If you think your money is safe in banks because the Federal Deposit Insurance Corp covers your deposits, then you are a fool. They are underfunded.
They can't cover more than 2% of the banks if/when there is a run, or for other reasons the banks need their capital back quickly. If we all decide to withdraw the contents of our Checking and savings accounts, they collapse. In less than a week. All of 'em.
If a private insurance company had as few assets to cover their obligations, the Feds would shut them down instantly.
Besides, you are only covered for the first $100K or so of your total deposits in all banks combined.
So if your "nest egg" is more than that, you are exposed. Big time. And most retirement accounts are NOT FDIC insured.
The "Bank of Simmons" seems like a good idea...
Betcha that the retirement accounts and depositors are the next cash cow for the
See also: Cyprus. Writ large.
THis is NOT an april fools joke.
Via the Captain