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  • I guess in a way it is..

    If a bank is 'too big to fail' they probably control a lot of wealth in the world. For example, HSBC, total assets at around 2 trillion, fails, then my guess is that the entire world's economy will probably fall with it. I guess this suggests that it isn't completely safe, but compared to keeping the money in cash, keeping it in banks of this size is a lot safer. I guess it can't be 100% safe, anything can happen, HSBC can go bankrupt. But at that time, I believe everyone's wealth will probably be down to zero if not already at zero. In a way, it would no longer matter if the bank goes bankrupts as everyone is experiencing the same as you, whether they chose to use the bank or not.

  • Yes, the one place you can trust your money is in a "too safe to fail" bank.

    If a bank is considered "too big to fail" by the U.S. government, there isn't anything the government won't do to keep it in business, or any reason why the government wouldn't attempt to bail it out. This was proved in the 2008 economic collapse. The crimes those banks committed were incredibly egregious, and the government still bailed them out.

  • No, you're better off keeping it in a safe in your house.

    Just because we have the FDIC now, doesn't mean it will provide the protection of your money as it says it will. It has happened in the past and it will happen again when the government gets desperate. The government is driven by money and if they don't have any, there are sure enough going to get yours. It doesn't matter if it's against the law, heck they created the FDIC, they can take it out too if they needed to. At the rate we're going there won't be anymore 'too big to fail' banks in the U.S.

  • Looking at events in Cyprus,

    A financially logical, and free thinking individual, wouldn't trust any banking system. Americans need to realize that what can happen overseas can happen here in the U.S. This country is not exempt from the laws of social unrest. In reality, it already happen. Americans paid for the to 'big to fail' bailout. Instead of bank accounts, the country took it out of the tax payers pay check. So in reality, we already been Cyprus!!

  • Your Money is Never Completely "Safe"

    Although we all feel pretty safe putting out money in the federally insured banks (as we should), it is important to remember that nothing is impossible. As we saw in Europe, extreme times can lead to extreme measures. This doesn't mean that you should keep your money under your bed either, because the value of the money itself could become useless. If you really want your money to be "safe," invest in resources that are not renewable or are necessities in life (land / food and water).

  • No, money is not safe in large financial institutions deemed "too big to fail".

    No, putting complete faith in institutions deemed "too big to fail" by the federal government does not mean that they won't eventually fail or are safe holders of your wealth.

    These institutions rely on unequal protection and financial support by the government under the assumption that failure of the business would lead to devastating and unrecoverable economic instability. However, this special treatment does not take into account the fact that many of these institutions and their partners have participated in both illegal and immoral practices with the money and assets entrusted to them. Too big to fail does not mean that they will not some day be held accountable for criminal activity or that the government itself may fail. Therefore, placing money in an institution reliant on special treatment is not a safe bet. A more stable route for protection of wealth would be to balance between various financial institutions, assets, and portable property.

  • Your Money is Never Completely "Safe"

    Although we all feel pretty safe putting out money in the federally insured banks (as we should), it is important to remember that nothing is impossible. As we saw in Europe, extreme times can lead to extreme measures. This doesn't mean that you should keep your money under your bed either, because the value of the money itself could become useless. If you really want your money to be "safe," invest in resources that are not renewable or are necessities in life (land / food and water).


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sadashivan says2013-05-22T14:46:38.733
Trusting banks is difficult can any moment say "Bankrupt:
Quan says2013-06-24T02:05:43.367
It's about as safe as it can be. Even if you stash your money in a safe in your house, it's still a fiat currency. It has no intrinsic value.