It is possible that banks will go under as a result of excess real estate loans that go sour, but I don’t see any sign of Americans doubting the banking system. The banks can have a run on their money only if people make a run as a result of losing faith in the banks. It all works on trust.
If a bank fails, the government will print whatever money is necessary to bail out the banks. This printing will put the saver whole, and will affect all Americans, as excess money creation causes inflation. Again, FDI is a safe entitity, backed by the US government.
As far as gold, I would be so worried about someone stealing it. I suppose you put it in a fireproof safe?
Please tell me again where to buy the bullion or coins, as I wish to get a little bit. I will store it off-site, since my address and name are now public.
For various reasons, we should keep some cash and assets on hand, out of electronic accounts. The terrorists could incapacitate our electronic networks, or completely mess them up, or give out our private information for others to mess with, so I see the value of keeping some hard assets on hand. Besides, you cannot get taxed on dividends/appreciation on your gold.
