And so it begins

[Control for Smilers]

 

[Bear44]

Like I said, that's not what I'm encouraging. I'm just saying the argument could be made that if something like that were to happen, would not the doofuses who contributed to the problem and have their money in-hand, regardless of it's lesser value, be in a better position than the non-panickers who can't access their money at all? Temporarily or otherwise?

If the past few years have taught us anything, though, if there is a potential panic to be made, people will do the same things every time while those of us that plan ahead sit back and watch. Or unfortunately still have to deal with the fallout of their poor planning and stupidity.

I didn't panic buy extra gasoline during that little debacle last year, but it sure was a pain in my rectum when I wanted to try and fill up at a pump.

For someone that isn't encouraging it, you sure seem to make a strong argument in favor of it.

How many people do you think will read this thread? How many people do you think they will tell about it?

 

[BHPSteel]

Well, as long as you have less than $250k in a bank and it's an FDIC covered entity, you're going to be made whole by the FDIC.

If you have more than $250k in one of the banks that have gone under so far, it seems as though the Federal Reserve will make you whole. This has been done specifically to stop you trying to withdraw your balance. They will probably also cover you if your assets are in a bank that fails later in the week.

So, there's no benefit in standing in the rain with a suitcase and trying to withdraw your cash. However, you should do you, and there's some comfort in having a pile of cash under your bed.

Now, if your bank comes under pressure and DOESN't go tits up, they may have a liquidity crisis that means you can't pull out a lot of money if you need it. So I certainly wouldn't criticize someone who decides that they'd like a cash cushion in case the ATMs go offline for a while.

After all, it's YOUR money.

 

[BH-ATL]

The govt seems to be rewarding some bad behavior. The FDIC is replacing all deposits regardless of amount. One start up /venture capital firm had 95% of its assets there. While taxpayers are not paying for this directly if you have money in a bank you are through fees. Plus there some low interest loan being offered to banks to cover their loses in bond to help stop a run on banks. Where are risk managers at the banks and companies that are supposed to keep this from happening.

 

[letusbuyyourcar]

it's better to be a poor !

I don't know any other way.

 

[BHPSteel]

The govt seems to be rewarding some bad behavior. The FDIC is replacing all deposits regardless of amount. One start up /venture capital firm had 95% of its assets there. While taxpayers are not paying for this directly if you have money in a bank you are through fees. Plus there some low interest loan being offered to banks to cover their loses in bond to help stop a run on banks. Where are risk managers at the banks and companies that are supposed to keep this from happening.

Again, for bank accounts that lose more than $250k, the losses are being covered by the Federal Reserve Bank and not the FDIC. This is important because while the White House is correct in saying that the taxpayer will not be funding these bailouts, we ALL will be funding these bailouts because they'll be paid for by printing money (and hence, higher inflation) or via increased interest rates (which will increase borrowers costs). As I've said in other threads. This is a REALLY bad idea.

Risk Managers are basically people who get paid a huge amount of money to be the scapegoat when a financial firm blows up. On the up side, everyone in the industry understands this, so even risk managers who are implicated in huge compliance and business failures can still get a new gig pretty easily once the dust settles.

 

[BDR1]

Sounds to me like someone in this is all for govt.. if we get our money outta the bank then when he decides to get his money he WONT HAVE ANY TO GET..

 

[rbstern]

Great thread! Let's encourage everyone to go get their money out of the banks and create a huge run that will destroy the banking system and the economy. That way any money you do manage to get out of the bank or have stuffed in the mattress really will be worthless. Fantastic idea!

Are you of the opinion free speech is a problem when people actually exercise it?

Reality check: There is serious, underlying weakness in the financial system due to poor fiscal policy and discipline on the part of the United States government, along with even poorer regulatory oversight in the FinTech industry. The risk of that weakness is now manifesting itself in high profile bank closures.

Your apparent position: Everyone is better off acting the ostrich, head in the sand, so reality won't be so harsh for society as a whole.

I'm not suggesting people run to the bank, pull their cash, and stick it under their mattress. But for anyone with too much exposure to banks heavy into crypto and highly levered venture entities, it would be best to make sure all of your money is FDIC backed, and if this gets worse, perhaps consider whether that may be enough, and whether your your position needs a hedge.

 

[KSouth]

What is this “money in the bank” are y’all talking about?!? It paycheck to 3-4 days before the next one around here. Y’all really concerned over $25-50 in y’all’s acct. y’all doing better than me.

 

[K79540]

I'm trying to cash a check..and all my local truism banks dont have enough cash on hand..on hold currently with 3rd location...check is only 12.5k