Tuesday, September 30, 2008
I'm Pulling Out Some Extra Cash
The FDIC has asked for an increase in the size of accounts it can fully insure, presumably to forestall bank runs. I encourage everyone to have larger cash balances than normal; at least a few days' worth. It's true that an FDIC-insured account is "safe," but Robert Wenzel explains that the FDIC purposely makes you wait in line for hours to get your "safe" money at a failed bank. If your bank fails, you will wish you had pulled out a decent chunk beforehand so you can wait for things to settle down before trying to get your money.
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