22 votes

Peter Schiff- 'Insured' Bank Deposits are at Risk!

Peter Schiff talks about Cyprus and fractional reserve banking, deposit insurance and depositor confidence.

Peter notes that if you are concerned about the safety of your money in a bank, put it in gold.

http://www.youtube.com/watch?v=sgIHvHeLeEk&feature=player_em...

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SteveMT's picture

Peter Schiff is Right, again.

US Deposits In Perspective: $25 Billion In Insurance, $9,283 Billion In Deposits; $297,514 Billion In Derivatives
3-19-13

Earlier today, the American Banking Association reminded Americans that there is absolutely nothing to worry about when it comes to the sanctity of US deposits: after all there is a whopping $25 billion in the FDIC insurance fund which means "insured depositors are safe and their deposits are protected by a strong FDIC fund....The FDIC insurance fund has over $25 billion in reserves and the banking industry " Obviously supposedly "insured" depositors in Cyprus also though there was nothing to worry about, until they woke up on Saturday with a haircut between 6.75% and 9.9% on their money in the bank. Sadly, it may be the case that the ABA is being just modestly disingenuous in its statement. Why? Instead of explaining it in detail, here is a snapshot that does more than thousands of words ever could.
Chart at link explains the problem:
http://www.zerohedge.com/news/2013-03-19/us-deposits-perspec...

7 trillion in savings backed up with only .22%

that means for every million dollars in savings there is only $2,200 in the insurance fund... draw your own conclusions.

http://www.dailypaul.com/249683/fdic-dif-cannot-cover-all-de...

Noah says it's time to build our arks.

Or we can wait someone else calls the tunes.

Free includes debt-free!

Cyril's picture

I say, Noah is totally on time and spot on.

I say,

Noah is totally on time and spot on.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Applied percentages / figures of the Cyprus story in perspective

Applied percentages / figures of the Cyprus story, in perspective:

http://www.bbc.co.uk/news/business-21823432

And here's the sweet spot:

with this event and other contextual elements, the Euro also gets weaker (vs. the US "dollar")

Thus, they'd, kind of, be stolen "less money".

Bitter consolation?

/sarcasm

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

http://www.nbclosangeles.com/

http://www.nbclosangeles.com/news/local/Chase-Bank-Customers...

Posted in another thread.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Deposit insurance

Peter is absolutely right about abolishing deposit insurance. If there were no federal deposit insurance banks would have to be more cautious about how they loaned money. More importantly people would be less likely to keep so much of their money in banks, banks themselves would have to be more competitive and offer depositors higher interest rates.

The bold effort the present bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it-Andrew Jackson

Cyril's picture

Peter is absolutely right about abolishing deposit insurance.

"Peter is absolutely right about abolishing deposit insurance. If there were no federal deposit insurance banks would have to be more cautious about how they loaned money. "

Exactly right. And how Dr. Ron Paul was defining the nature of moral hazard, in a not-so-unrelated domain, again?

The Economics of Disaster

http://www.dailypaul.com/275716/the-economics-of-disaster-by...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

and the FDIC insurance is bogus

that dont have the assets to make good the deposits-in many cases they force a merger with a more "solvent" bank to make good

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Cyril's picture

BUMP.

BUMP.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Peter nails it early, a little after mark 5 mins 30 secs:

Peter nails it early, a little after mark 5 mins 30 secs:

"... intentions can change... actions speak louder than words..."

But as usual, the entire video is definitely worth watching.

Thank you for pointing it out.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

You've got to "love" Peter's post's title...

You've got to "love" Peter's post's title...

"Insured Bank Deposits At Risk, America Burns While Obama Golfs"

'Nuff said!

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Debbie's picture

Thank you for posting this!

Thank you.

Debbie