As of March 13, 1933 FDIC insurance did exist, and as to why a bank holiday might be needed I’m not sure but I would suspect a run on the banks might be a cause.
I agree, a bank holiday seems unlikely to happen, and yet apparently this HSL (Letter) has been fairly accurate in forecasting according to some sources including WSJ Marketwatch (who named it Letter of the Year in 2008).
This was the headline:
By Peter Brimelow, MarketWatch
NEW YORK (MarketWatch) — The top-performing letter that predicted the Crash of 2008 now predicts a confiscatory Franklin D. Roosevelt-style “bank holiday.” But it’s surprisingly sanguine about stocks — in the (very) short term.
