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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: bonnuss_in_austin who wrote (35013)	3/25/2001 12:21:16 AM
From: AllansAlias	Read Replies (2) \| Respond to of 35685

In other words, are FDIC-insured CDs 100% risk-free? No. When you find something that's 100% risk-free that provides a return, you'll be under the shadow of a money tree. -g Not much to say about the parenthetic remarks concerning Luc and bans. There are exceptions I am sure, but as a whole, the banning has worked fairly well over there. It's a slanted forum with a certain culture. For now they are on a serious roll. This too shall pass. What has to happen for the FDIC insurance on CDs <= to $100k to fail? Well, this answer has at least two parts. For you to outright not get your money, we would need some horrible cataclysm to befall us. This is unlikely. However, there is a more pernicious method of getting a negative return on the money -- inflation. Buying power would continue to erode, as it has now for many years, to the point where your $100k would have been put to better use in an instrument that did not suffer from a devalued dollar. Some think that will be gold or other precious metals. I do not know and am not quite thinking that far ahead right now. Bonnie, I think it would be wiser, and this is of course a humble opinion, to concentrate more on a continuing bear market at this point. We are a ways off from dislocative events that will seriously threaten your purchasing power, so I think the opportunity right now is in assuming that we get a year or four of glorious market swings. Along the way, you could leg into an asset that would be less likely to deflate should things eventually get very weird. This will all take time imo. No need to be expecting some doomsday scenario to unfold in the next little while. At the highest level, the easiest way to protect your account is to avoid relying on it. BTW, when SNL does a skit on the bear market, and they are, then I know that a decent rally is not far off in time. Apologies for the somewhat rambling answer. Cheers.