Munger on Gold

Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy gold, they invest in productive businesses. [1]

Charles Munger


[1] Margo D. Beller – ‘Civilized People Don’t Buy Gold’: Berkshire’s Munger., 4 May 2012.


Seidman on Deposit Insurance

A deposit insurance system is like a nuclear power plant. If you build it without safety precautions, you know it’s going to blow you off the face of the earth. And even if you do, you can’t be sure it won’t.

L. William Seidman, as quoted in Clifford F. Thies & Daniel A. Gerlowski – Deposit Insurance: A History of Failure. Cato Journal 8 (1989), p. 677.

Seidman on Deposit Insurance

My friends, there is good news and bad news.

The good news is that the full faith and credit
of the FDIC and the U.S. government stands
behind your money in the bank.

But the bad news is that you,
my fellow taxpayers,
stand behind the U.S. government.

L. William Seidman – Full Faith and Credit. The Great S&L Debacle and Other Washington Sagas. Beard Books, Washington D.C. 2000, p. XIII.