FDIC insurance certainly has value; sure you're not getting much (or any) returns, but, it's just the extreme end of the risk/reward spectrum.

If we were in an environment where the bank failure rate exceeded 1%, then I would say, sure, thats an OK investment, but that high of a BFR has not been seen. If we were then the investment landscape is much worse than FDIC could insure, rendering itself useless and in all likelihood would deplete itself within a few years (depending on which banks and how much capital gets hit of course).

Then again, Americans have other options to park their assets that are far better places of retaining capital AND growth at the same time, housing being one, stocks being another, bonds being the third worst. So FDIC is about as good as BFR will ever lend you, and currently that means what I noted above - a dumb fucking decision.

Hmm, I’m not sure I agree. Everyone who had their money at SVB got it back thanks to FDIC insurance. Bank failures do happen, in the real world. Just because they’re currently rare doesn’t mean a black swan can’t happen

The Personal Savings Rate on this graph includes money saved via investments. It's not just a Savings Account tracker.

They take what people make, then subtract out money spent on goods, services, and taxes, and interest payments. The money left over is what is considered.

You are incorrect.