“The Federal Deposit Insurance Corp. has only $40.8 billion on account while insuring trillions of dollars. And you may not know this, but banks don’t hold all the money they supposedly have as assets.”
Worth reading and remembering.
“And you may not know this, but banks don’t hold all the money they supposedly have as assets.”
Yes. Somewhat like playing musical chairs, except that those in the know already have a reserved seat for when the music stops. The rest of us are on are own.
The FDIC has $ .30 to insure every $ 1000 account. In the US you cannot open an insurance company in any state or territory with that asset to liability ratio. If one of the top six US banks defaulted the FDIC would default.