Is a credit union safer than bank? Safer than vanguard?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

FPYCparent wrote:Not going to claim that crazy things cannot/will not happen, but per https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation:

The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding.

...

The FDIC receives no funding from the federal budget. Instead it assesses premiums on each member and accumulates them in a Deposit Insurance Fund (DIF) that it uses to pay its operating costs and the depositors of failed banks.

Admittedly, I am NOT an economist and I cannot predict the future. However, I'd like to think we can agree on some facts to form the basis of an informed discussion.

Nobody is saying it's going to run out of funding, we're saying who knows what Musk and his boys plan on doing with it. What's to stop them from not paying out? What's to stop them from personally stealing the money?

The Second Amendment.

Ok tough guy. You go try to shoot musk and see how that works out for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FDIC absolutely does cover runs on the bank.

They DID. I don't trust Musk et al with my money, do you? Do you remember the Silicon Valley bank near run two years ago? And that was with competent financial stewardship from the federal government. All bets are off.

I'm not telling you to take out your cash and put it in your mattress. But have a plan.

What would a plan look like? Genuinely asking.

The plan is either dumb or there is no plan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FDIC absolutely does cover runs on the bank.

They DID. I don't trust Musk et al with my money, do you? Do you remember the Silicon Valley bank near run two years ago? And that was with competent financial stewardship from the federal government. All bets are off.

I'm not telling you to take out your cash and put it in your mattress. But have a plan.

What would a plan look like? Genuinely asking.

The plan is either dumb or there is no plan.

Yeah everyone knows plans are for girls and liberals.

[Anonymous]

Oh, and on ag. I really should have mentioned- labor is going to get ..interesting. Ags lifeblood is immigrant labor. So that is the other thing that is going to raise prices- people are afraid to work. I cannot name many parts of ag production that aren’t heavily dependent on immigrant labor. Adds to inflationary pressures.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

FPYCparent wrote:Not going to claim that crazy things cannot/will not happen, but per https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation:

The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding.

...

The FDIC receives no funding from the federal budget. Instead it assesses premiums on each member and accumulates them in a Deposit Insurance Fund (DIF) that it uses to pay its operating costs and the depositors of failed banks.

Admittedly, I am NOT an economist and I cannot predict the future. However, I'd like to think we can agree on some facts to form the basis of an informed discussion.

Nobody is saying it's going to run out of funding, we're saying who knows what Musk and his boys plan on doing with it. What's to stop them from not paying out? What's to stop them from personally stealing the money?

The Second Amendment.

Ok tough guy. You go try to shoot musk and see how that works out for you.

The question was what stops the government from seizing our bank accounts. No one is calling for an assassination.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

FPYCparent wrote:Not going to claim that crazy things cannot/will not happen, but per https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation:

The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding.

...

The FDIC receives no funding from the federal budget. Instead it assesses premiums on each member and accumulates them in a Deposit Insurance Fund (DIF) that it uses to pay its operating costs and the depositors of failed banks.

Admittedly, I am NOT an economist and I cannot predict the future. However, I'd like to think we can agree on some facts to form the basis of an informed discussion.

Nobody is saying it's going to run out of funding, we're saying who knows what Musk and his boys plan on doing with it. What's to stop them from not paying out? What's to stop them from personally stealing the money?

The Second Amendment.

Ok tough guy. You go try to shoot musk and see how that works out for you.

The question was what stops the government from seizing our bank accounts. No one is calling for an assassination.

What do you think this person meant by the second amendment? What do you think they're insinuating by that?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FDIC absolutely does cover runs on the bank.

They DID. I don't trust Musk et al with my money, do you? Do you remember the Silicon Valley bank near run two years ago? And that was with competent financial stewardship from the federal government. All bets are off.

I'm not telling you to take out your cash and put it in your mattress. But have a plan.

What would a plan look like? Genuinely asking.

The plan is either dumb or there is no plan.

Yeah everyone knows plans are for girls and liberals.

"Everyone has a plan until they get punched in the mouth". - Mike Tyson

[Anonymous]

Anonymous wrote:No one serious is worried about deposit insurance. Banks are safe.

If you want to worry about something, worry about a recession and inflation.

No one who understands what the real goals of all these crazy policies are is NOT concerned about the FDIC being dismantled. It's real, he's already said it's coming, and it's already proven that no one in his party is going to raise a fuss, so them being in all the majorities means it's likely to happen.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one serious is worried about deposit insurance. Banks are safe.

If you want to worry about something, worry about a recession and inflation.

You should be worried about bank runs and hyperinflation.

This. FDIC doesn't cover that.

Once your money is out of your hands and electronically stored, it is no longer in your control and you entire savings could disappear with a virus or cyber attack or simply by the government deciding you don't need it anymore.

That is precisely what FDIC covers. Many people on this thread don't understand how banks operate or why FDIC is needed. A bank's model quite literally demands that it take deposits and loan them out (or invest them). By design there isn't enough money in the vault to pay off all depositors if they all come to get their money. THAT is why FDIC (or NCUA) exists. Bank runs are less likely if depositors don't have to worry about being first to get their money before it runs out.

While we're cleaning up misinformation, FDIC is paid for by banks. There are calculations that determine their contribution rates. Investors don't pay for FDIC insurance (except if you want to argue that interest rates are lower to account for the expense).

[Anonymous]

An extension of that is that mutual funds, even money market mutual funds you get at a brokerage like Fidelity or Vanguard, don’t have deposit insurance but they also don’t need it. Those companies take your money and buy treasuries and short term bonds on your behalf with it, they don’t loan out 10x as much as you give them for mortgages and car notes.

[Anonymous]

Anonymous wrote:

Bit late for that. Already been happening for years. Banks are not "safe" either. Safer than a mattress in a sketchy neighborhood sure, but not guaranteed in event of financial crashes.

Banks were/are safe under D administrations. This Dump White House will sell you and your life savings down a river in a heartbeat, in case there's any confusion about that.