[sonnhy]

Excuse my really basic understanding of Economics, but how "investing everything" does keep you away from losing money to the bank in which your funds are? Aren't, the money you invest, already in a bank, and associated to your fund? If the bank fails how can you manage your investments (as I suppose you will lose your bank account if the bank fails)

[mseebach]

Putting cash in a bank account is actually you lending money to the bank (for them to lend to other people), not a neutral store of an asset, like if you put physical bills or gold or whatever in a safe. If the bank goes bankrupt, that mean it's creditors (you) don't get paid, or get paid less than they're owed. To prop up trust in the banking system, governments insure bank deposits, in the Eurozone up to a value of €100k.

If you invest instead, you own (a piece of) something physical - a business or a property, typically. A house can burn down and the business can go bankrupt, in which case you lose your investment (unless you're insured). Banks in Italy are incredibly unhealthy at the moment, so to protect your money, you would want to put it in something more healthy, which might simply be a bank account in a not-Italian bank, or as proposed, assets of healthy businesses.

Reneging on an insurance guarantee or forcefully converting deposits to a different currency is a substantially different legal beast than confiscating property (which your shares would be). Perhaps, given that they serve roughly the same end, that shouldn't be the case, but it is.

[sonnhy]

Thank you for the quick anwser. I understood your answer to my first point, but, if you know, can you clarify the answer to my second question? If the bank fails, and my account in the bank, where I manage my investments, gets deleted.. where all my investments goes to? How can I manage them?

[mseebach]

They don't "get deleted". When a bank manages your stock holdings, it's actually a different part of the business from the bank that you deposit cash into. All they do is hold in their computer systems (for a fee) the document that certifies that you own a piece of stock in company X. Just like you don't lose your stored stuff if a self storage business goes bankrupt (they or their creditors never have a claim on the stuff, the stuff is unequivocally yours), you don't lose your stock certificates if the bank goes bankrupt.

[sonnhy]

Thanks for clarification.