Is Your Money Safe at Bank of America [Or Any Big Bank]? An Economist Says ‘NO’ and Withdraws His $1 Million

by Terry Burnham, PBS:

Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000. Why am I getting in line to take my money out of Bank of America? Because of Ben Bernanke and Janet Yellen, who officially begins her term as chairwoman on Feb. 1.

Before I explain, let me disclose that I have been a stopped clock of criticism of the Federal Reserve for half a decade. That’s because I believe that when the Fed intervenes in markets, it has two effects — both negative. First, it decreases overall wealth by distorting markets and causing bad investment decisions. Second, the members of the Fed become reverse Robin Hoods as they take from the poor (and unsophisticated) investors and give to the rich (and politically connected). These effects have been noticed; a Gallup poll taken in the last few days reports that only the richest Americans support the Fed.

Why do I risk starting a run on Bank of America by withdrawing my money and presuming that many fellow depositors will read this and rush to withdraw too?

Read More @ PBS.org

hat tip/ZH

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