If I only have $100 in my checking account and I write a check to the grocery store for $150, the check comes back and the store didn’t get the money it thought it was getting. And the store will no longer take my checks.
I know this is not the way it’s done anymore since now there are bar codes on the checks and you can’t “float” them anymore. But that’s still basically what the government is doing. So, can someone explain, in VERY simple terms, why anyone keeps accepting “hot” checks from America?
A large part is that the investment is still perceived to be “safe,” whether you are a foreigner, or not. Another part might be the “it won’t happen to me, it will happen to them”-syndrome.
Barry says “if I have checks, I have money”.