The financial crisis is growing and no one knows for sure who are, or what will be the next shoe to fall. In previous posts I have articulated my concerns on both the markets and those who influenced policy. In this post I will discuss how the system fails, how to evaluate the bank you keep you money in, a list of the safer banks in the country at this time, and provide a link to a web video that explains how banks work and fail. It seems now would be a good time to discuss how to evaluate your local bank in order to know how safe your money is!
Your local bank should have minimal exposure to high risk investment because if it is not minimal they are at high risk of failure. What happens if they fail? You may lose your cash or at the very least wait at least a year or two to get it back. I can assure you it will not be with interest because I speak from experience because two years ago Refco, LLC failed and it took 2 years to get 40% of my principle.
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