Current bank safety
Hi Terry, I enjoy your regular appearances on the WGN morning program.
I notice that the Federal Reserve has been pumping large amount of funds in our banks.
Which banks and why? That information seems to be closely held.
Along with that, I have seen many articles questioning the wisdom of dependence on banks for our savings. Some “experts” are recommending to remove funds from banks and to depend on safely protected cash on hand. This suggests future banking
problems or failures, with potential difficulties in withdrawing savings.
What is happening to bring about these negative projections? Or are these overstated
concerns which should be ignored?
Thanks Terry for your expertise.
Terry Says
Stop reading these junk articles predicting the end of the banking system! The “nugget of truth” is that the Fed has recently been adding more reserves to the system (the entire system, not just specific banks) because it is worried that inflation remains so low. time will tell whether this is a good strategy on the part of the Fed. But it is NOT a symptom of something wrong with specific banks.
DO NOT take your money out of your insured deposits! It’s ok to have some cash on hand for emergencies — but if the system shuts down you won’t be able to even buy a loaf of bread with cash! These are just a bunch of doomsayers who are trying to get you to subscribe to newsletters, or worse they are fraudsters targeting your cash!
