"I think government insured deposits is the reason, the primary reason that banks are so reckless. The depositors know that they are going to get their money back no matter what the banks do with it, so the depositors don`t care how much risk the banks take. In fact they love when the bank takes risk because they can earn more interest or get free services. The banks know that their costumers don`t give a damn how much risk they take, so they take plenty of risk. And so, because of deposit insurance the banking sector is much riskier than what it would be absent that insurance." - an excerpt from Insured Bank Deposits At Risk, America Burns While Obama Golfs
Related stocks and ETFs: Bank Of America (BAC), Wells Fargo (WFC), Citigroup (C), JP Morgan (JPM), Financial Select Sector SPDR (XLF)
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.