Is a Bank Run possible now in the present financial situation? December 11, 2009
Posted by Credit in : Elections , trackback
M. Lim Faith asked:
I’m planning to withdraw all the money in my savings account in case my bank gets a direct hit from the possible bank run that will start in the next few weeks.
I’m planning to withdraw all the money in my savings account in case my bank gets a direct hit from the possible bank run that will start in the next few weeks.
Depression will be next so no more credit cards. It’s gonna be an all cash transaction.
Comments»
A depression? In a week? How you know this?
Have you heard of the FDIC?
You are right about the no more credit. The cash will not be worth much though…read up about Argentina in the 70s. The only thing that was worth anything was actual physical goods for barter/exchange.People exchanged food( for example) and got electronic goods or leather goods etc Money was paper…TP by another name. (I was living in Ecuador at the time and could have taken advantage of the situation like my friends did but I was chicken…too many guns at the borders)
Yes it is possible. And, by the way, the FSLIC and the FDIC are only insurance companies. They are not governent “watchdog” agencies. Currently there is less than 1% of the amount of cash on hand in the federal reserves than is needed to guarantee all the money in th US banking system.. If there was a run on the banks tomorrow, it would be a disaster that would make the crash of 1929 look like sunday in the park.
We got our money out and used it to purchase goods. We never did use credit cards other than debit.
Preparedness always gets labeled paranoid and over-reactionary, but my husband and I breathe a lot easier than many people in times like these.