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What do you mean "invest"? Most of this bank's customers are running a business and need a bank account, it's not an investment.
It’s quite simple, really. Startups should buy hundreds of millions in gold, then stash that under 160,000 different mattresses to diversify risk of a systemic bank collapse. If Bogglehead retirees can figure that out, why not startups?
>The federal government’s action is, in my estimation, the right thing to do for this moment in time. There will, though, be long-term consequences for fundamentally changing the nature of a bank: remember, depositors are a bank’s creditors, who are compensated for lending money to the bank; if there is no risk in lending that money, why should depositors make anything? Banks, meanwhile, are now motivated to pursue e…
> depositors are a bank's creditors, who are compensated for lending money to the bank; this is simply not true. if anything the bank charges me money to hold my funds.
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That was true last week . https://www.marketwatch.com/investing/bond/tmubmusd06m?count...
Oof! Still hard to find a savings account that pays > 1%.
Get 3.3%, at least.
No, depositors get interest to compensate for inflation.
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That's just a waste of capital and leads to zero business investments. It's exactly what happens in crypto because it's deflationary, and it's the main reason there is no crypto economy beyond the price speculation.
No it just increases the hurdle rate for valuable investments. It just means that entrepreneurs have to prove that their ideas are worth more than the security of knowing your money is safe. Is that so bad??