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Proof that the Major US Banks have lost all your money.
So what does all this mean? Well these banks have over 250Bn US$ deposited in every case. They could only afford to pay depositors 25bn of it if they collapsed. Heaven forbid that more than 10% of their customers should ask for cash or that all customers should request more than 10% of their holdings (as would naturally happen if inflation ran rampant). They really really cannot afford to give you your money back if you ask for it.
Ahah but what about the Governments Federal Deposit Insurance Corporation? The FDIC promises to protect deposits up to a limit of $250,000 per depositor. Unfortunately if only ONE of these banks could not meet commitments they would not be able to live up to their promises. Why? Lack of funds. The FDIC is only mandated to have 1.15% of its liabilities available, and it has never actually managed to do that in practice. The fund has ranged from a paltry 11bn to 46bn seemingly at random. If only ONE of these 250bn + banks went broke then the liability would soak up these funds and then some.
So you ARE in the bankers trap. You must support your bank, feed it with more money, and not try and withdraw everything or else YOU will lose everything. Meanwhile the bank uses its money (that used to be your money until you ‘deposited it’) to gamble, make profits that it pays in bonuses to bankers, or shareholders – anything but improve its capital position in fact. If it does not make a profit and ‘loses’ then it knows that governments and depositors will be forced to bail it out or in.
Now I am sorry but I would rather have the safe and secure knowledge that my cash is converted to gold and in a fireproof safe in my wardrobe than the certain knowledge that my money has dissapeared into a black hole and is being held hostage.
