A few minutes ago, I watched Suze Orman respond to this question on CNN: In light of the current financial crisis, should I take my money out of the bank? Orman's response? No because you might be robbed or your house might burn down and you would lose your money. Anyone taking advice from this woman should probably be institutionalized as a danger to him/herself and others.
The correct answer to the question is: No, because if everyone tried to remove their money from their banks today, the vast majority would not get their money and the entire system would collapse. Banks do not have all of our money locked away in a vault. Think about it, how would they pay their people and their bills if they just took our money and locked it up for safekeeping? Right, couldn't happen. Banks make their money by loaning depositors money to others at interest or by investing it in other financial instruments *shudders* like home mortgages. Except for a reserve required by law to maintain their ability to allow some depositors to make withdrawals, the money you deposit is not in the bank very long before it is loaned out. So everyone can't just go to the bank and get their deposits in the same short period of time.
One wonders why PBS continues to expose their viewers to Suze Orman. Probably the same reason McCain chose Palin: Pretty trumps competent every time in our culture.