There's no real risk involved.
I trust the FDIC to be far more johnny on the spot to resolve a liquidity issue than I do any private entity
As of June 2026, the FDIC had approximately $161 billion in its insurance fund against...drum roll... $10.8 trillion in insured deposits.
Good luck calling on your insurance on a systemic bank crisis....
A situation which calls that borrowing capability into question would mean the economy is so bad the dollar is worthless.
More if you're in Silicon Valley… semi-/s
Not really related to the discussion here though, since we were determining whether the interest rate is zero.
The bank still uses the deposit money in that system. You are right to point out those same people on the street I mentioned would freak out even more if they knew that banks essentially lend out more than we deposited and also that they might sell your debt and all that jazz (I bet most people either never understood what happened in 2008 or forgot already other than a vague "yeah mortgage crisis")
Absolutely true. They question here is how many announce they are borrowing from you :-)
That's what banks do. It's not a secret. Any cursory understanding of banking gives you that information.
Hint: Gold has no more to do with it than any other commodity does. Ditto with petroleum.