[Idaho_Cowboy]

if investors/depositors were ever to try and convert even a small portion of this “wealth” into actual physical bills, the system would implode (there simply is not enough actual cash).

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That’s a given with fractional reserve banking. The problem is you can create a run on the whole system and the FDIC doesn’t have a magic want it can wave when you want to get your hands on your money so they’ll force you to accept the ultimate fiat currency, a number on a spreadsheet.

[SkyPilot]

That’s a given with fractional reserve banking. The problem is you can create a run on the whole system and the FDIC doesn’t have a magic want it can wave when you want to get your hands on your money so they’ll force you to accept the ultimate fiat currency, a number on a spreadsheet.

Exacly. The FDIC could not afford to pay but a pittance on deposits if there was a run on banks. It is a joke.