I’ve been reading a Book called “Aftershock, protect yourself and profit”. Its an interesting read but I’ve been asking myself if these guys are full of bull. They SAY they predicted the financial woes we have recently gone through but I haven’t had time to check their claims. They SAY we are heading into another bigger problem. Then I found this article http://finance.fortune.cnn.com/2013/02/11/banks-bond-bubble/?iid=HP_LN and BAM, I’m a believer.

I first saw the book through a random link that popped up on a search I did. I’ve seen hundreds of these things like “Learn how to make money doing (this)” or “Here’s the secret to whiter teeth”. I’m certain you have seen them as well. I follow the links once in a while just for a laugh. This one included a video which had some interesting information even if it was a lot of tooting their own horns. I opted to check further especially when it offered a FREE copy of the book. Let me be VERY CLEAR, there was NO WAY to get a free copy or even the expanded information they promised. That was a total fabrication.

I left the site and decided to do a bit of digging. I found a friend that had a copy and had read it. On his recommendation I did more digging and found I could get the book cheaper from Barnes and Noble than from Aftershock publishing. I picked up a copy on my ereader and started reading. I found that they do A LOT of tooting their own horn in the book as well but in between is a lot of good information. There isn’t as much information on how to profit from the info but it is a fascinating read none the less.

If you follow me on Twitter you will have seen that I promised to blog about the ARTICLE that I gave a link to above and the FDIC. I’m sorry I got distracted from that purpose but I wanted to convey WHY that particular article was of interest. Now to the heart of the matter. The article mentions that the banks may take a big hit but that the Government assures us that our money is covered by FDIC

What the Government FAILS to tell you is that not ALL of your money is covered. I have a couple of friends who had their retirement saving in a particular local bank. The bank proudly displayed the FDIC logo. Sadly the bank failed and my friends had just about the maximum amount that the FDIC claims to insure in their individual accounts. To make a long story short, after several months they received checks…for pennies on their dollar. They got a small percentage of their savings and had to work a number of years past their planned retirement date because of it.

The FDIC told them that they had a cap on what was to be paid for any particular institution. That cap amount was spread out between all of the account holders. My friends had no recourse and their money was gone.

The moral of this tale and a song that many investment gurus sing is that the bank is the WORST place for your money. Unfortunately their really isn’t any place that is totally safe these days. Study and be smart with investments. Don’t be fooled by the “free” offers out there.