Why This Harvard Economist Is Pulling All His Money From Bank Of America

Zerohedge ^ | 1/31/14 | Tyler Durden

[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 Fed’s efforts to strengthen America’s 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.

[Kartographer]

"Watson the game is afoot."

[Kartographer]

Preppers’ PING!!

[MIchaelTArchangel]

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! ??

[Vendome]

Why the hell would anyone sock $1 million wampum in someone eleses steel vault?

[djf]

A couple days ago, the news about bankers in Europe killing themselves...

Ruh-Roh!!

[Kartographer]

"Why the hell would anyone sock $1 million wampum in someone eleses steel vault?"

Their matress was full and they didn't have any pickle jars?

[PAR35]

Nope. $250K.

“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.

[Mr. Lucky]

Yeah, I’m gonna trust the financial advice of a guy who had $1,000,000 in an account earning, what, .003%?

[Vendome]

Has to be the reason.

Dumbest thing I’ve heard in a while.

[FredZarguna]

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?

[FredZarguna]

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.

[PoloSec]

BOA is the most corrupt bank in the global banking system, that is not to say any of the others are better.

[LRoggy]

Zero Hedge . . . the IPCC/Al Gore of global economic warming . . . sorry, ECONOMIC CLIMATE CHANGE!!

[KC_Lion]

A. Because Bank of America SUCKS!!!!

B. Never trust a Bank, your local Credit Union has far more to offer (in most cases) and is controlled Locally.

[faithhopecharity]

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???

[wally_bert]

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.

[familyop]

"$1,000,000 in a checking account?"

That's not wise. Maybe he's trying to influnce the Fed to give him high yields with a bond collapse (fast money for nothing, last ones out being losers) skyrocketing interest rates and the rest of the vicious circle of general economic collapse. The debt regime went way too far long ago. Any move to do the right thing so late will shut activity down, so the loose money policy goes on.

[Jim from C-Town]

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?