Can someone please explain how the Bank of North Dakota works? It seems like a ponzi scheme no less frail than the Fed only the monetary bubble is spread through the people of the state rather than isolated to a few rich bankers. Which would be better I guess, but I would like to know some expert opinions on whether this is a viable and advisable course to pursue here in Texas.
Thanks!
It works like any other bank practicing fractional reserve lending. And carries all the risk of one of these institutions. The ONLY difference between it and the small bank down the street is that it has insurance from the State of North Dakota while the local bank has insurance from the FDIC. The tax payers in Rhode Island really got stiffed in a similar situation.
There is some advantage there in that if the BND goes out of business then ONLY (barring political transfers to the state by the Feds) the tax payers of ND get stiffed unlike the local bank where the whole nation gets stiffed.
I can find nothing that states that the insurance charges if any are less than or more than those of the FDIC.
Please see a much better bank as it does not stiff anyone for its poor performance here:http://www.freelakotabank.com/.
A better bank if the