Skip to comments.Why This Harvard Economist Is Pulling All His Money From Bank Of America
Posted on 01/31/2014 5:00:19 PM PST by Kartographer
From Terry Burnham, former Harvard economics professor, author of Mean Genes and Mean Markets and Lizard Brains, provocative poster on this page and long-time critic of the Federal Reserve, argues that the Feds efforts to strengthen Americas banks have perversely weakened them. First posted in PBS.
Is your money safe at the bank? An economist says no and withdraws his
Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000.
(Excerpt) Read more at zerohedge.com ...
How much should I listen to someone who keeps $1 million in his checking account when the FDIC insurance limit is half that amount?
DOH! or DUH! ??
Half? Thought it was 1/4 when they temporarily raised it to $250,000 or so.
Why the hell would anyone sock $1 million wampum in someone eleses steel vault?
A couple days ago, the news about bankers in Europe killing themselves...
“temporarily raised it to $250,000”
No longer temporary. And, of course, the FDIC was set up as a temporary agency by FDR.
A million in a checking account? The dude needs to take some economics and business courses.
Yeah, I’m gonna trust the financial advice of a guy who had $1,000,000 in an account earning, what, .003%?
Well, that’s good news.
Now, if I add the dime that was in my pocket earlier today, I only need $249,999.90 to come up to the limit!!
Has to be the reason.
Dumbest thing I’ve heard in a while.
Not only that, but $1,000,000 in a checking account is a pretty big non-performing asset. Who needs that much liquidity? Is he expecting a kidnapping?
My checking account earns 1.5%. One megabuck is still too much unless you’re rolling over another fund TOMORROW, buying a house for cash next weekend, or expecting a kidnapping.
BOA is the most corrupt bank in the global banking system, that is not to say any of the others are better.
Zero Hedge . . . the IPCC/Al Gore of global economic warming . . . sorry, ECONOMIC CLIMATE CHANGE!!
B. Never trust a Bank, your local Credit Union has far more to offer (in most cases) and is controlled Locally.
What kind of economist has a million dineros ? What kind of economist leaves a million dineros just sitting in a crummy checking account? Something does t seem to add up right here???
I did some contract work rolling out new equipment and driving the resupply van. I was also a lead person. One bank was enough, I got the van driver job. It was a little better than starving.
BOA is awful. The crowd they hired that hired me was even worse. There wasn’t anything else though. Beware a crowd called the Roelker group in FL. I would rather pick up cans on the side of the road than deal with them or anyone like them. Catbert and the PHB could take lessons from these people.
I was thinking the exact same thing. An economist from Harvard keeping $1 million in a checking account and not in some form of reasonably appreciating investment doesn’t show Harvard for much of an economic powerhouse.
Stupid is as stupid does. Couldn’t he fit that money under his mattress?
Where do you keep your checking that you get 1.5%?
In honesty, if I had that kind of cash in hand, I wouldn’t be putting it in any investments; I would be keeping it as it is and then ONLY consider having it invested when the climate for business and the economy is more stable.
OH come on., Anyone with access to a computer can pull the trigger on a sell order in a matter of seconds. That and the fact that $1. could be invested in short term safe investments that would generate significant cash. There are lots of alternatives that are liquid and more profitable than a checking account.
An economist with $1 million languishing in a checking account in ANY bank is just an idiot. Best to bury it in the back yard. That is as effective of an economic strategy.
You read my mind!
which is why, 1 mil although uninsured in bank of America is pretty insured I don’t think they’ll be gone in a few days do you
Think just a little... if you had to liquidate all your brokerage accounts like Schwab, Vanguard etc... if you look carefully, they are not held in CASH but in a Treasury fund that has $1 equivalents. So if you're thinking the jig is up and you liquidate your funds, your stocks and even your "gold shares" and now have cash.... what to do with it. Well you move it into as liquid a position as you can. That would be insured cash checking accounts... and now he's given us a big hint that he thinks THAT isn't even going to be liquid because of what? Why take money out of a bank unless you thought the bank would somehow NOT have your money or not give you access to your money.
I wouldn't question his placement of the cash but I would question THE WITHDRAWAL of his cash.
That's what I'm doing in weekly withdrawals to build up a little cushion. I'd advise others to just maybe get 1 or 2 months of cash and maybe find a nice little niche for it, just in case we have a bank holiday. Remember that safety deposit boxes are also not your property, the contents can be held till the bank decides to open its doors.
Half? Try 1/10th. The limits reverted back to their old levels. At best they were $250k,. Unless he had his wife on it too. And what kind of a moron puts his wife on an account with $1mm in it?
not if the jig is up and there is a bank holiday. all the short term investment funds are held in dollar equivalents and NOT dollars. if he thinks the real crash and burn is coming and that even brokerage houses will break the dollar per dollar holding account equivalent, then taking it out and holding cash is best. Insured cash in an account is good but if you think the bank are going to be a little stingy with your money...well the back yard is looking nicer.
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It is just as I have said, what this author is promoting. He want sound money, because it creates an economy based on value (he says people) rather than money. Value will last, while money will collapse if more and more is created.
when I saw the HSBC limits in china and London I thought the same
Well perhaps he should buy gold bullion. That still begs the question as to why he would have $1 million in a checking account. One would expect that to be a sizeable percentage of a professors net worth, even one from HAAARVAAARD!
I don’t know about him, but I use Provident Credit Union. Providentcu.org
Currently 1.76% on up to $25,000. To qualify, you have to make one transfer, such as direct deposit, and 10 debit card transactions per month. It’s a piece of cake for me as I simply do monthly automatic debit card donation to my church and favorite charities.
They are located in San Francisco area.
Just saw a little note in a local Iowa rag: A professor of entomology at Iowa State University makes $250,000 per year.
If you’ve got a $millon that you want to keep liquid, split it among 5 banks.
And while they don’t keep up with inflation, BofA does offer a checking account that pays at least a nominal interest.
Finally, if you think all the major banks are going to melt down at once, you shouldn’t keep all of your money in $$. Get some Euros, some metal, some guns, and a pile of MREs.
Provident CUs numbers look pretty good.
Of course, the outfit that insures credit unions doesn’t have enough money to resolve (close) a broke credit union in Texas. They’ve had it in a FSLIC style conservatorship for years. And we know how FSLIC turned out.
FDIC limit is 250K.
I’ll admit I didn’t read the story completely.
My sense was he had layed up an idiotic pile of cash and had placed it someone else’s steel cage.
That’s Rachel Jeteel Retar Ed.
If it’s how you surmise I’ll go with that.
I think having that much money in my grubby hands makes way more sense if it’s not invested in some vehicle that appreciates or might
I’d rather throw the dice than let the bank use my loot to serve their mathematical surety.
I believe the guy is a true believer, and put his money where his mouth is, and has been predicting a crash for a while.. He has his funds ready to catch the short, and believes it’s close..
If he placed his funds in an interest bearing account, Jumbos, Mutuals, etc, it would take too long to convert in the event the collapse happens, as it did in 2008, time is crucial.. Having it in a trading account is far more risky.. ie; Lehman bros..
Because $1 million is chump change to that person.
And the third one this week in WA state. The game is certainly afoot.
I don’t care if you have private jet money
$1 million is never chump change.
In fact, the people I know have private jets value $100 bucks like it means something.
That’s pretty good. Is there a minimum? What about over $25k?
And, of course, everyone who is worth that much is the same.
Deal with it. There are people on this planet who consider a megabuck as chump change. They would just as easily wipe their arse with a $100 bill as give it away.
You would introduce me to your friends.
I got all kinds of ideas for making money.....
That’s a lot of scratch for Iowa.
I can swallow that ...
that might be what he's doing. he might have divested most or all of his assets and parked it in BOA then decided... gold, lead, silver, coins, land, and foreign assets.
Who knows how much he has but I'm willing to bet that this is a public way of warning some of his colleagues... just like the suicides of the bankers last week.
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