Chapter 6. HOW SAFE IS YOUR BANK?
After reducing your exposure to real estate, selling risky stocks, cashing out unneeded insurance policies, getting rid of low quality bonds, and selling any other assets that may be vulnerable, I hope you have built up a nice little bundle of cash.
If not, there is another way to build wealth: Don't spend it! Cut your expenditures as much as possible. Follow the instructions on pages 92–93 to save like never before!
Where should you put the money? Your first instinct might be to deposit it in your bank. But recent bank failures prove that not all banks are equally strong. Some are strong and merit your trust. Some are at risk and should be avoided.
You ask: "Why worry? Doesn't the FDIC insurance cover me?"
The answer: There are other risks even if a bank is bailed out or taken over by the FDIC and sold to another institution:
You could miss out on interest income you were promised.
You could lose access to lines of credit.
And you could suffer other inconveniences, including some delays in regaining access to your funds or disruptions in your business.
Get The Ultimate Money Guide for Bubbles, Busts, Recession, and Depression now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
