“...wouldn’t FDIC insurance eventually cover depositors?”
What do you think the FDIC is? It’s the Federal government, IOW: taxpayers; us.
Our government is flat broke now; how is it going to bail out millions of depositors with anything but absolutely worthless paper?
“Our government is flat broke now; how is it going to bail out millions of depositors with anything but absolutely worthless paper?”
Our “worthless” paper is still worth a lot. Right now people, corporations and government worldwide are loaning us money at 1.6% on a ten year note, which means they agree to be repaid in ten years with our “worthless” paper. They may indeed prove to be foolish, but right now, US treasuries are viewed by most of the world as one of the soundest investments that can be made. Who else can borrow money at such a low rate?
So if the FDIC money will be worthless, any dollars tucked away in a matress will also be devalued, stocks are usually sucker bets without inside info, gold is already so high and I'm not sure a nation of people standing in FEMA soup lines will be interested in a pretty metal they can't eat... so what sugestions do you have?