February 18, 2013
My Dear Friends,
I really touched a raw nerve on the FDIC insurance of accounts at multiple banks. The deluge of emails makes me feel like many of you have 20 or 50 bank accounts, believing your millions of cash dollars are safe.
They are not.
The FDIC is a mirage as it has little capital in comparison to its liability in a systemic situation. If you are taking comfort that multiple accounts actually guarantee you no loss, you are really bonkers. If the FDIC was called upon to insure a systemic failure it would have to be one of the largest bailouts in this entire financial farce.