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Surviving a bank failure
- Thread Starter Just Jim
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No worries Jim, all my money is tied up in my gun safe... 
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OK, that's an email that's going around but I can't find a major news source with the story. I can find a lot of buzz on blogs, but that's it.
Do you have a major source for it?
The writer is correct that checking accounts are called demand deposits, payable on demand. However the Feds can and have declared a "bank holiday" to stop runs on banks.
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I bank with a credit union (MUCH nicer and cheaper than BofA!!!) but Citi holds my mortgage. Hopefully they will go under and lose track of the fact I have a mortgage. Free and clear, baby!
I can dream.
I would be out of any savings or checking account with a national bank. While my corporate 401K has dwindled, my ammo stocks have grown very healthy.
I can dream.
I would be out of any savings or checking account with a national bank. While my corporate 401K has dwindled, my ammo stocks have grown very healthy.
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we just had $1400 that our bank "misplaced" and the bank cant seem to find it. I went in to talk with the manager, she said if I dident have a transaction receipt from 6months ago when I transfered the money into saveings, "Her bank dident have my money"
I now have a lawyer and most of our money is in our safe, and at another bank!!!
I now have a lawyer and most of our money is in our safe, and at another bank!!!
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what are the Federal Reserve reserve requirements currently on banks? it's in the 3 - 10% range, I think. So you deposit $10,000 in the bank, they only have to keep $300 - $1,000 on reserve. The rest is used through fractional lending to create more money in the bank system. They took your 10K, loaned out $9700 of it, those loans sit as assets on the bank books and they make interest on the loans. But if you go to the bank one day to get your 10K to say buy guns, it might not be there. It takes time to move digital money through the system to adjust the books to bring the balances back in line (bank loans to each other at the fed reserve rate). So thus, the 7 period for no withdrawals - that bank system might be strained with bad loans and caught with their pants down.
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I would be glad to see citi fail, a bank is like any other business, and if they have a poor business plan, its their fault.
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It's about time some of the favored big banks start failing instead of getting boatloads of taxpayer money to buy competitors and pay bonuses and stay in businesses.
Notice that Citi, JP Morgan, Goldman Sachs never, ever, ever get the short end? Gee guess which banks are the biggest players in the NY Federal Reserve, which is the largest player in the Federal Reserve. Surely the "independent" Federal Reserve wouldn't collude with the US Treasury to insure it's largest member banks always come out smelling like roses.
Notice that Citi, JP Morgan, Goldman Sachs never, ever, ever get the short end? Gee guess which banks are the biggest players in the NY Federal Reserve, which is the largest player in the Federal Reserve. Surely the "independent" Federal Reserve wouldn't collude with the US Treasury to insure it's largest member banks always come out smelling like roses.
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Try this for validation -
http://www.businessinsider.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals-2010-2
- It's probably accurate - The best any one can do is read your new account disclosures - The bank will/must give them out upon request. The fact of the matter is that banks/credits unions can hold your funds under certain circumstances as long as they disclose that fact. Many regulations (REG CC for example) are undergoing significant changes and financial institutions are trying to adapt. All these changes are under the guise of consumer protection which is going to end up costing the consumer big time in the end. Don't wish for any bank's failure but vote with your feet!! Find a local institution - especially credit unions - You own the place when you join and there is a difference.
http://www.businessinsider.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals-2010-2
- It's probably accurate - The best any one can do is read your new account disclosures - The bank will/must give them out upon request. The fact of the matter is that banks/credits unions can hold your funds under certain circumstances as long as they disclose that fact. Many regulations (REG CC for example) are undergoing significant changes and financial institutions are trying to adapt. All these changes are under the guise of consumer protection which is going to end up costing the consumer big time in the end. Don't wish for any bank's failure but vote with your feet!! Find a local institution - especially credit unions - You own the place when you join and there is a difference.
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It was supposedly because they changed their FDIC insurance and there was certain guidelines for them to disclose to customers. It was only for one state but got sent accidentally to all customers.
Doesn't matter, all the banks are broke. When you take in a dollar and lend out ten, it doesn't take a genius to see it's a big rip-off. All your checking account money gets swept into savings accounts at night and lent out anyway. There is no NOW account or Demand Deposit. That's why they fear bank runs. There is no money. Never was.
Also take a look at this:
http://www.calculatedriskblog.com/2010/02/unofficial-problem-bank-list-increases_20.html
Doesn't matter, all the banks are broke. When you take in a dollar and lend out ten, it doesn't take a genius to see it's a big rip-off. All your checking account money gets swept into savings accounts at night and lent out anyway. There is no NOW account or Demand Deposit. That's why they fear bank runs. There is no money. Never was.
Also take a look at this:
http://www.calculatedriskblog.com/2010/02/unofficial-problem-bank-list-increases_20.html
I hate banks all together. I have an account at US Bank and First Tech Credit Union. US Bank screws me every single chance they get! The CU has never, except for a few random small fees I didn't expect and like all banks, they only let me take 500 out of the ATM per day, which sometimes screws up my gun buying. I keep all the money I can in my safe. I put just enough in my accounts so I can pay bills through the accounts and cash checks on them. I want my money where I can get it 24/7.
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6% - You would get back maybe 6 cents on the dollar...
All I can say is that lead is probably the most precious metal these days.
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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...
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...
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Read "Creature from Jeckyl Island" and it will reinforce what you already know -- that banking is a way to aggregate power to a select few.
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If everything truly hits the fan, cash wont be as valuable as water food or bullets anyways... LOL
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I'm not worried about money, spent half of it on wild women and whiskey. And wasted the rest of it!
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I had a mortgage agent admit this to me: Your promissory note (in the stack of mortgage papers) creates the money; the bank is just facilitating the transaction.
So the bank should get a small yearly service fee. But noooo - they charge you 150% of the loan amount as interest!
So the bank should get a small yearly service fee. But noooo - they charge you 150% of the loan amount as interest!
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There are many banks doing this. They foresee the day when the sheeple wake up to what's happened (note past tense) and generate a run on the bank.
Those of you who read history may remember that FDR declared a "bank holiday" back in the early 30's when the populace panicked and demanded their funds all at once.
This will be happening here sooner than you think. And Gunner, you won't read a word of it in any "major news sources" because the MSM is complicit in creating the myth of economic recovery.
The government has new rules regarding money market accounts, also not covered in the major press, whereby the Feds can, at their pleasure, deny redemptions from money market accounts held by the public.
Also at risk are 401(k) accounts; the Feds are working on a way to entice you to roll your mutual funds into treasury bonds and bills (government debt) to pick up the slack left by China and other foreign investors dumping our bonds. At some point it may be mandatory, so if you have any kind of balance in your 401k it might be time to cash in, or borrow a huge chunk of it if your plan allows you to borrow against it. Buy land and gold.
Most folks here have it right: stuff the mattress with a mix of gold, silver and some cash, and prepare, prepare, prepare. . .
Those of you who read history may remember that FDR declared a "bank holiday" back in the early 30's when the populace panicked and demanded their funds all at once.
This will be happening here sooner than you think. And Gunner, you won't read a word of it in any "major news sources" because the MSM is complicit in creating the myth of economic recovery.
The government has new rules regarding money market accounts, also not covered in the major press, whereby the Feds can, at their pleasure, deny redemptions from money market accounts held by the public.
Also at risk are 401(k) accounts; the Feds are working on a way to entice you to roll your mutual funds into treasury bonds and bills (government debt) to pick up the slack left by China and other foreign investors dumping our bonds. At some point it may be mandatory, so if you have any kind of balance in your 401k it might be time to cash in, or borrow a huge chunk of it if your plan allows you to borrow against it. Buy land and gold.
Most folks here have it right: stuff the mattress with a mix of gold, silver and some cash, and prepare, prepare, prepare. . .
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Absolutely correct on the 401K. The gooberment, having spent every last nickel they had access to, and then some, is now eyeing your 401K's and retirement plans... Just a matter of time. If you can't hold it in your hand, don't count on it. And even then, they are very creative at finding ways to take it from you. Precious metals is the way to go. None more precious than lead. Food and seeds would be pretty smart too.
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