Give me one good reason why anyone needs a traditional bank!
Let's talk about why none of us really needs a traditional bank. 1. Today, most banks are really screwing their customers by paying near-zero interest on deposits, while the bank earns 5% or so on mortgages and car loans. That is a far greater spread for the bank than was the case historically. In contract, the larger/safer investment funds like Vanguard or Fidelity are paying about 5% on money markets and short-term bond funds. That's where most of our cash kitty needs to be. The pure greed of the big banks is the reason why none of us should be using them. Otherwise, it's like we are masochistic and enjoy being abused. The banks do not treat us like customers--they treat us like resources to be stolen from. 2. First Republic Bank is down 50% today, as depositors pull out their money: On the one hand, the bank was greedy and got upside down on stupidly-unhedged long-term T-bill purchases--purchases which proved too risky as interest rates rose, and any high school economi...