Post
Topic
Board Economics
Re: Report: More Than 50% of the Worlds Banks May Be Too Weak To Survive A Recession
by
1Referee
on 25/10/2019, 21:56:59 UTC
This may not be a good time to have money stored in banks, if indeed more than 50% of them are weakened and may not survive an economic downturn.

All banks are inherently weak during a recession, or when they have too much exposure in x/y/x/ country or industry. I don't consider that to be much of a problem.

The real problem is where we go with our money, and no one seems to have a proper answer to that question. One could say that buying Bitcoin or Gold is a good option, or real estate, but even when doing that, there will always be a significant part of our worth stored in bank accounts because a bank is still the best place to actually store our money.

I personally have bank accounts with different large banks that with a high probability will receive financial support in case things turn ugly, because they are too big to fail. Another thing that you can do is to open bank accounts in foreign countries with a stable financial system and economy. In other words, diversification/distribution amongst different banks is what I suggest.