Buenos Aires, Argentina. Last week’s lunch at the American Club in Buenos Aires was thoroughly enjoyable. Around 12 of us shared a wide-ranging discussion
If someone had an incredible amount of money – about $500 billion – how should he save it when banks are not that reliable?
- No-one has $500bn of actual cash. So the problem doesn’t arise.
- If someone did somehow end up with $500bn of actual cash then they should spend that money rather than putting it into a bank. With half a trillion to spend I’m not suggesting they go out and buy a new Ferrari (though they can if they want), I’m saying they should invest it in stocks, bonds, real estate or whatever.
- They could even buy a bank or two if they wanted. That would presumably reduce their stress about any potential overdraft fees. Bank of America is only worth about $250bn right now, so they could snap that up & probably negotiate free checking in the process.
- If you’ve got $500bn and your main concern is the bank’s reliability, you’re worrying about the wrong things.