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<p>[QUOTE=&quot;World Colonial, post: 2411166, member: 78153&quot;]&quot;Missing out&quot; on potential gains is one of the primary drivers of excessive risk taking and directly contributed to by moral hazard.&nbsp; Sure, it is a &#039;risk&quot; but most people never consider the disproportionate outcome from being wrong versus being right.&nbsp; And to provide a hint, when most people are wrong, given the pittance they have in savings and net worth, it could ruin them as has already occurred due to the &quot;Great Recession&quot;.&nbsp; Millions have had their financial lives changed forever because they lost much of their savings, then lost their job and since then found one that paid less or much less.&nbsp; Seven years into this economic &quot;recovery&quot;, the data I have seen states that the inflation adjusted median net worth is about a third less than 15 years ago, at about $54,000 today versus over $80,000.</p><p><br /></p><p>Reviewing history is fine except that history until recently didn&#039;t include the greatest asset, credit and debt mania in the history of civilization.&nbsp; This is exactly what we are living through now and have been since at least the mid-1990&#039;s.&nbsp; Most people are just not aware of it because they now consider it &quot;normal&quot;, possibly have never experienced anything else, recency bias and a false sense of confidence in the ability of government to prevent declining living standards.</p><p><br /></p><p>FDIC deposit insurance is a form of moral hazard and has contributed mightily to the current reckless banking practices which are generally considered but actually anything but &quot;safe and sound&quot;.&nbsp;&nbsp; It ultimately won&#039;t prevent anything but instead create a &quot;fat tail&quot; distribution &quot;black swan&quot; event which is at best part of a giant put option on the USD.&nbsp; Moreover, I wouldn&#039;t count on getting 100% of your deposit balance back in a crisis.&nbsp; Bank &quot;bail ins&quot; are definitely going to be an option, whether most people believe it or not.&nbsp; The &quot;money&quot; most think they have on deposit with the bank is actually a loan to the bank.[/QUOTE]</p><p><br /></p>

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