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  • Jim Costa

Jim's Daily Rant. Saw this Question In A Chat Room.

I talked to a relative in the banking business and I asked him about these failing banks. He wasn't concerned at all. He said that when someone has more than $250k in their account (FDIC insurance limit), those people will move what is uninsured to different banks so that it too is then insured. When I asked if there was an issue with all the money suddenly leaving the bank, he said no, the money isn't leaving the bank, because for every person that moves a large sum out, there are several people from other banks moving their money to our banks, it balances out. So, the real question... If that is the case, why did bank after bank start dropping? Once SVB failed, what happened to the others? They saw a free bailout coming and hopped on the "we're broke" band wagon! That last part is my theory anyhow, he didn't claim that.

My Response:

I have to agree with what the banker said. But someone should have been buying him drinks so he would keep talking. Bankers are trained to never say certain works or concepts. Such as: . . Some percentage of the outflow goes to precious metals or cryptos. . . Some goes to real estate. Note that in some states, the home is sheltered from bankruptcy liquidation. . . Some goes to non-Federal Credit Unions because they may be safer than other banks. . . Some may go to pay off business debts so those businesses may survive. . . Some may go to inventory business inventory or raw materials before killer inflation occurs. . . then the concept that FDIC is a regular corporation owned by the bankers. When it is no longer useful, they will allow it to go into bankruptcy! If that is the case, it may be a succor play on the unsuspecting. Question: If the one world order switches to one crypto currency, Will it need FDIC Insurance?

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