Julio Huato wrote: > At any point in time, the balance sheet of a bank is a testimonial to > the tremendous power of faith and prayer. > > The absolute bulk of a typical bank assets are its time deposits. > Totally liquid stuff. The only thing that keeps those deposits in > their place is a thin layer of transaction costs and faith.
I used to think this. But in an effort to make sure that my wife's and my Credit Union savings account wasn't too large for the FDIC, I discovered how funds transfers are delayed for about a week (and thus lead to a forgoing of interest income). Luckily, I don't need to spend that money right now (in which case the transactions cost would be much higher). I guess it depends on your perspective. The transactions cost is low if you're rich. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
