Banks are Collapsing! What YOU can do to Protect Your Investments

On this episode of the Heartland Multifamily Podcast, I’m taking a short break from talking about multifamily investment and putting on my banker’s cap to explain what’s happening right now with banks in a way that matters to you. Banks hold money, but they don’t literally have all the money in every account in one big vault. This is called a “liquidity problem” because if everyone tried to get all their money at once, the bank would collapse. But it’s not just bad banks that have this problem, every bank has this. When a bank is on the brink of collapse, what tips it over is often the news (or rumors) that its customers can’t get their money back. Although banks may all seem the same at first, who sits on the board of directors and what their values are makes a huge difference in how banks are run. You need to do your due diligence where you put your money. And finally, smart investors are changing their objectives from making the most money to being most secure with their money and insulating themselves from risk. Watch this episode to learn what you can do to protect your money if your bank declares bankruptcy.