If there is an economic collapse, how can “assets” be sold when no one has any money? The FDIC just seizes everything? If none of us are getting our pensions or social security payments, then paying debts will be moot.
Somehow this doesn’t seem right.
I was referring specifically to banks. The customers deposits in savings, checking and CD accounts is FDIC insured to $250,000 per eligible account.
Pension payments do not come from these accounts as far as I know and SS payments come directly from the government. Any funds invested in brokerage accounts are not covered by FDIC but unless fraud is involved these accounts should not be affected by the collapse of the bank except to the extent the market reaction will cause the shares value to decline due to said collapse. Money invested in brokerage accounts is actually with the institutions which manage the accounts. As an example, if you ask your bank to buy 1000 shares of the fidelity Ginnie Mae Fund the money from your account goes to Fidelity Investments which will use it to buy the 1000 shares in your name. The failure of your bank will not have any effect on the value of these shares except as I mentioned before except as a reaction to the banks failure which in this case could cause the shares to increase in value because the fund invests in 100% government backed securities and obligations to a maturity of about 5 years.