A sign of government’s failure:
About 60 million adults do their banking at places other than banks, according to a new survey by the Federal Deposit Insurance Corp. The FDIC wants consumers to rely more on insured banks, but a lot of people feel it’s in their financial interest to stay away from traditional banks.
Al Walker is one of the people the FDIC is hoping to convince. In his fitted jeans, hipster scarf and oversized sunglasses, he may seem a little too trendy for ACE Cash Express, a check-cashing store in Washington, D.C.’s U Street district.
But he’s outside the national check casher — even though he has a bank account.
If people don’t bank within the banking system, there’s nothing to regulate.
Call this a socionomic/psychological data point. Another is the run-up in gold & commodities, but not for the reasons you may think. I’ll offer my thoughts on that in another upcoming post.