FDIC insurance isn't as safe as you think!
The problem, which most people forget, is the FDIC WAS NOT the only deposit insurer.
At one time we also had the FSLIC. Doesn't ring a bell? How about the insurer that went bust in the savings and loan crisis of the late 1980s, early 1990s.
They were short 150 BILLION dollars.
Why can't the FDIC go bust with nowhere near as much?
The fact of the matter is the FDIC can go bust. As a matter of fact, the FDIC was almost insolvent in the last financial crisis.
Currently, there is over 9 trillion with FDIC insurance in the US and the FDIC has las than 1% of that amount in its fund.
But the problem is two-fold. It's not just the unjustifiable confidence in anything backed by the FDIC but it's the sheer inability to find what banks are doing with your savings to get the additional interest rate paid over a savings account or checking account.
Try googling it. The only thing you'll find is how “safe” these CD's and money market vehicles are, absolutely nothing about how the banks get you the additional interest.
In this video I take back the curtain on the FDIC, CD's and MM's so you can see how the banks are gambling with your savings! I discuss the following:
- How the relationship with you, your bank and the FDIC works.
- The US dollar funding market to pinpoint where the banks are gambling with your savings.
- The history of the FDIC, why you shouldn't trust them to ensure anything and solutions to the problem!
Check out the video above to watch!