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Larry Kotlikoff's avatar

Hi David,

There is a good chance the FDIC will insure all deposits and things will settle down. This is more likely than a complete meltdown. Stay diversified, including real estate and gold. best, Larry

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Michael Rogawski's avatar

Dear Professor Kotlikoff: Private debt funds have provisions that permit the manager to "gate" withdrawals if investors seek to withdraw funds in excess of readily available cash. Would it be too far fetched for the Fed to impose gates on withdrawals from regulated banks? One could imagine that depositors who could demonstrate an ordinary business purpose would be permitted to withdraw as usual and that provisions would be available to allow extraordinary withdrawals with justification while others would have to wait until cash becomes available.

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