Who can say it better than Warren Buffett? Every time I hear him speak, I learn something new and rarely does it come from the rare times when he spouts off about his opinions of where the economy. The thing that makes me respect him the most is that when he is asked about the future, he often will say, “I don’t know.” Why don’t more people say that because that’s the only answer we can rely on.
Sorry, that’s not what this article is about. What Buffett said that I really liked was that we as a country MUST have confidence in our banking system. Very few things are more important to people than their money. Sure, you can argue that that is materialistic but tell that to the husband or wife with a family of 5 who just lost their job. Our money is important to us because it has to be and Buffett is right. If we aren’t confident in our banking system, the economy implodes.
The government knew this not long after The Great Depression when they created the Federal Deposit Insurance Corporation in 1933. I am amazed at how many people don’t understand what an extraordinary thing the FDIC is. They don’t realize that since it’s inception, the FDIC has helped 3600 banks and in that time, not one average person like you and I have lost a dime of our savings. As long as you don’t have over $250,000 in one bank, it doesn’t matter what happens to that bank, you will get your money back…Period.
When was the last time you heard a story of somebody keeping their money under a mattress because they don’t trust any bank? You have to believe that they don’t understand what the FDIC is.
If you are an investor and believe that the banks are under attack and you may lose your investment, that’s the subject of another article. You may have a case to make. But if you are an average person keeping your money in a bank, rest assured that your money is absolutely 100% safe. It is backed by the full and credit and of the United States Government. There is no guarantee that is better than that.