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

Zerohedge ^ | 1/31/14 | Tyler Durden

[Yorlik803]

do kidnappers take a check?
Wouldn’t keep that sort of cash in a checking account. Too many hackers and it seems that cyber security is only slightly better than keeping cash in a cardboard box.

[Go_Raiders]

Minimum $25.00 to open account. Otherwise no minimum balance. Amounts over $25,000 earn practically 0%.

You could theoretically have another family member open a second account, but that account would have to meet the same direct deposit and debit card transaction requirements. Also, I am not sure they would let you have two of these accounts at the same address.

[Mich Patriot]

"Not to mention that the FDIC will belly laugh at those who believe their money is safely insured."

Exactly...the discussions on this thread about FDIC limits are hilarious. I'm not counting on a single dollar of "coverage".

[FredZarguna]

My money market is making considerably more than 0.1, don't care about yours, and not surprised given the quality of your financial "advice."

You are of the opinion that a money market insured to $250K is less safe than a checking account insured to $250K under the same conditions in which there could be a collapse as described in this article?

O... K...

Like I said. Not interested in taking financial advice from someone who knows so little.

[Humidston]

“...the FDIC has enough money to cover only a small portion of the nation’s banking deposits. As Peter Schiff says, “While the FDIC currently has about $25 billion available to bail out failing banks in the event of isolated events (mainly held in U.S. treasuries that would need to be sold), it insures more than $10 trillion in deposits.”
From the book “Game Plan” by Kevin Freeman.

[Titan Magroyne]

>>> 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.

I’ll second (or third, or fourth) that. Banks - credit unions too - seem to come up with ever more creative excuses to avoid distributing cash to the very depositors who earned it and own it. Even an acknowledged “bank error” is likely to entangle one’s assets indefinitely until it all gets sorted out. Meanwhile, how do you the poor shlep even gas up the car at the pump to respond to perhaps an unforeseen family crisis without the cooperation of the dubiously “safe” institutional computer clutching at your electronic money? Cut the middleman out for having outlived his usefulness.

In my most desperate situations of the past 5 years, financial institutions requiring that I explain how I spent (or earned!) my own money have only served as stress enhancers. Fie on all of them! I’m freeing my moeny from the buzzards as soon as I am able.