Surviving a bank failure

[Gunner3456]

Freddie Mac loses $7.8 billion, warns of foreclosure wave

By Alan Zibel

Associated Press
Posted: 02/24/2010 09:19:43 AM PST
Updated: 02/24/2010 03:00:45 PM PST Link

..."Underscoring the market's weakness, the Commerce Department said Wednesday (today) that sales of new homes unexpectedly plunged 11 percent from December to January to the lowest level on record."

 

[NWPilgrim]

Freddie Mac loses $7.8 billion, warns of foreclosure wave

..."Underscoring the market's weakness, the Commerce Department said Wednesday (today) that sales of new homes unexpectedly plunged 11 percent from December to January to the lowest level on record."

Who could have possibly seen this coming!!
[/sarcasm=off]

Logic says we are in for a collapse of markets, inflation and taxes to an extant rarely experienced in a dominate nation. It is hard to mentally accept this is going to occur soon in our life time, but I can't see any way we avoid this given the current voters and politicians.

I was filling out my tax return and it makes me sick to see how much money is flushed down the SSA drain. That should be money I invest for retirement, instead it is being used to pay off the elderly for their votes.


This political-economic house of cards cannot stand for much longer. It either impoverishes through inflation/taxation, enslaves us through government regulation/control, we default and start over without a central bank, or massive revolt. The debt will be too great. The only "soft landing" would be to cut the govt spending by 50% - 70%, eliminate huge sectors of government and regulation, and reduce taxes to encourage entrepreneurship. No way politicians will vote for that option. So it is enslavement, default, or rebellion.

Anyone see a different path open to us?

 

[Silver Fox]

Nope.

SF-

 

[Just Jim]

Look at Greece right now and all the riots they are haveing. Think America will be any different?

jj

 

[Wheeler44]

Anyone see a different path open to us?

Today, while attempting to find a path through the wasteland I read about some folks that might have a map.....I said might.....I'll have to do more readin' though......

I started this thread in legal and political
http://www.northwestfirearms.com/forum/showthread.php?t=25410

I'd appreciate any input you all might have...

 

[Ragingpit]

They'll take Precious metals as well... On April 5, 1933, Roosevelt commanded all citizens to surrender their gold to the government.

 

[supergenius]

Food water guns bullets.... bubblegum gold.

 

[Generator]

It's fractional reserve banking that should scare us if we have a lot of cash in the bank.

Say a bank is required to keep 10% of it's depositors' money in reserve and can lend the rest.

You have $10k on deposit so they can lend $9k of it to me. They put it into my account. NOW they have $19k on deposit so guess what!!! They can loan out another $8,100! So they do, and deposit that, and now they have $27,100 on deposit and can lend 90% of that!!

This type of banking creates money out of thin air.

When this country was founded banks had reserves to cover every deposit. Now it's all smoke and mirrors and if it starts down...

You are completely right, If I am not mistaken (Its been a few years since school) it is called the "Economic Creation of Money"
I always argued that it was 'pretend' money, I was always told I was wrong... but with this failure in the fake money market they proved me right, when everyone comes due for payment, your 10k isn't worth 10k+9k+8100+7290 and so on. No One Had Any Dollars To Back Up What They Got In Payment or as 'company profits for 'stock value' - which some knew, and we all learned in the late 90's, stocks are based on value of stock, not the company value.

So when the debts got recalled, doing the math listed above, there were 90+ accounts or companies (or more with bundles and then securties on these bundles) that found themselves broke. (many more I'm generalizing the math)

My vote.
Let them die, and install some sort of Government regulation to not let Greed get out of control. We don't let people steal, but when it is a business we 'Failed to understand the outcomes...'

Its called balance, Free Business is good and only made for Greed (well Increase in Stock price as all the Board Members and CEOs say when they step before Congress "Its their DUTY").
Government takes our money and puts restrictions on business... decided by career politicians.

When can we get the Career Politician who's best friend is in the market for Greed Business in line with a general sense of doing what is right for your constituents, your employees and customers and still getting a little extra for yourselves. Its like Capitalism with a sense of conscious... or am I dreaming... And Don't start with the socialist stuff - that leads to human lazy failures... but cheating people out of what was fair used to get a man shot, and I believe that Fair is Fair.

 

[Generator]

They'll take Precious metals as well... On April 5, 1933, Roosevelt commanded all citizens to surrender their gold to the government.

Whats gold worth when you don't have a market decided dollar value to evaluate it against....

 

[Gunner3456]

Whats gold worth when you don't have a market decided dollar value to evaluate it against....

The best thing about precious metals is that you don't need a government to tell you what it's worth, and you don't need Wall Street manipulators either. It's worth what someone will give you, and it quickly establishes itself as a unit of exchange.

It takes a few months, but it will establish itself as worth so many bushels of wheat or...

 

[Generator]

The best thing about precious metals is that you don't need a government to tell you what it's worth, and you don't need Wall Street manipulators either. It's worth what someone will give you, and it quickly establishes itself as a unit of exchange.

It takes a few months, but it will establish itself as worth so many bushels of wheat or...

I got a box of 50 Wildcat .22s.... I'd like 50 tons of useless gold

Of course, I did invest heavily in gold in the markets over the last few year and it helped me a lot when I cashed out... but when the banks collapse, no one will be here to tell me what its worth.

 

[Gunner3456]

I got a box of 50 Wildcat .22s.... I'd like 50 tons of useless gold

Of course, I did invest heavily in gold in the markets over the last few year and it helped me a lot when I cashed out... but when the banks collapse, no one will be here to tell me what its worth.

No one will be there to tell you what a bushel of wheat or a loaf of bread or a parcel of land is worth either. The market will establish itself based on supply and demand. At some point you might not even be able to trade gold for a loaf of bread. You might need firewood or ammo.

As time passes, and things stabilize, the gold will always find it's value because people always trust it as a way to store savings.

Before we went off the gold standard, during the depression, I believe that minimum wage, although not called that, was about 10 cents per hour or one silver dime. I believe that a better paying job was more like one silver quarter per hour.

When times were better, say during the 1960's and people weren't so desperate for jobs, a laborer could get one silver dollar per hour and a better factory or union job would have been more like 3 dollars per hour. You could buy a gallon of gas with a silver quarter. Today that silver quarter is worth about $3. Ta da!!

So, even the value of labor vs silver varied with supply and demand, as during the depression, and the silver won the day.

If someone has better info, please post it up.

 

[Sasquatchvnv]

Gimme an ounce, and I will give you a nice AR M4 - see how easy that is?

 

[Generator]

"No one will be there to tell you what a bushel of wheat or a loaf of bread or a parcel of land is worth either. The market will establish itself based on supply and demand. At some point you might not even be able to trade gold for a loaf of bread. You might need firewood or ammo."
--Gunner3456
You couldn't be more right.

you are historically correct. And if everything breaks down, and there is no Government to tell us what money is worth, we will decide, and likely Gold and Silver will come back into worth, but these are assumptions... based on thousands and thousands of years of history. But if mankind can maintain their wisdom, then items like Silicon used in Microchips (Gold is too, but to lesser level) will become more valuable. (who doesn't love the devils advocate)
If we recover from Bank failure and return to a civil society, you are right, and history has proven that... heck we never learn from the past except for what is valuable (and I mean that with out sarcasm)
But in the years of needing some food --- as we all trade cotton green-backs or magnetic swipes for food, will be come as useless as all things pretty. If its a fast turn around as what happened to all those who were screwed in Nazi Germany - some will trade it all away and live to see the day that they knew they got a raw deal-- when The USA settled the rest of the world into civility and capitalistic trade.
If its longer, well then our grandkids will decide

 

[Generator]

Gimme an ounce, and I will give you a nice AR M4 - see how easy that is?

Heck, your asking todays value where I could turn that into greenbacks. I do love the m4 though!

Can I give you the equivalent in SeaShells?
http://en.wikipedia.org/wiki/Shell_money
I promise it will be worth a ton in the future.

Mostly guys, I'm saying we don't know what will be exchanged for the guy who knows how to churn butter or garner his own yeast to raise bread. Maybe its gold, but for now I'm banking on either my 401k going up or .22 and Gatorade mix being my gold mine. I'll have the best tasting water in all the land!

 

[EZLivin]

Food water guns bullets.... bubblegum gold.

You might want to reconsider that statement. Food spoils or is consumed. Water evaporates, spills, or is consumed. Guns eventually break. Bullets are used, or they would eventually deteriorate as they pass from person to person. None of those act as a viable store of value.

Besides, "bubblegum(ing)" gold would really hurt!

 

[Sasquatchvnv]

<broken link removed>

 

[EZLivin]

Ammo as a barter item, "yes." Ammo as cash, "no."

 

[SSG]

The Plan -

- Shut off the ammo supply
- Shut off water/power
- Shut off the bank servers: Visa/Debit/Credit Cards Useless
- Banks shuttered

= Inside of two weeks everyone will be in food lines, with a Marine standing there checking Id, looking at a laptop with all the guns you bought...'you wanna eat, you want water and power, turn in your guns'

Checkmate

 

[nixuser]

i survived the bank of clark county failure moral to the story is get your money out of banks and if you have to use some kind if instution use cerdit unions