Cash, gold and silver, and Bitcoin are going to be salvation for a lot of people during the next financial crises. From Nick Giambruno at internationalman.com:
It’s hard to think of a topic where following conventional wisdom is more dangerous than banking.
The general public and most financial experts accept as absolute truth that putting your money in a bank is safe and responsible. After all, the government insures your deposits, so if anything were to go wrong…
As a result, most people put more thought into the shoes they purchase than the bank they entrust with their life savings.
However, the banking system is a mile-high house of cards that could collapse anytime.
Here are three reasons why.
Reason #1: Government Deposit Insurance Is a False Sense of Security
The Federal Deposit Insurance Corporation (FDIC) insures bank deposits in the US.
When a bank fails, the FDIC pays depositors up to $250,000. The FDIC has a reserve of around $126 billion for this purpose.
Now, $126 billion is a lot of money. But, considering there are around $9.8 trillion in insured deposits in the US, $126 billion is just a drop in the bucket, around 1.3%, to be exact.
In other words, the FDIC’s reserve has around one penny for every dollar of deposits it insures.
It wouldn’t take much to wipe out the FDIC’s reserves. One large bank failure and the FDIC itself could go bust.
For example, the recently failed Silicon Valley Bank—the largest bank failure since the 2008 crisis—had around $210 billion in customer deposits. That’s $84 billion more than the FDIC’s entire reserve.
STRAIGHT LINE LOGIC 