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banks...bad feeling!

Discussion in 'Survival/Preparedness Forum' started by inzone, Feb 22, 2010.

  1. inzone

    inzone

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    Aug 20, 2009
    My cousin is a CPA and does a lot of auditing for the banking industry. He is telling me that he is seeing some very strange behavior at high levels of the banking industry.... big banks are starting to have their legal departments prepare all kinds of disclaimers for customers and a whole lotta CYA behavior is going on. This is just a heads up...I am probing for more info out there if anyone else is getting any intel..... ostensibly there are some problems leaking out of FDIC and VERY large amounts of money is being moved around by the Chinese and other foreign sovereign funds. My cousin thinks it spells really bad # 10 trouble.... p.s. if you dont think I have enough detail then, respectfully, help us all out by telling us what info you are hearing.... I am just tired of being blind sided like we all were when the subprime/stock meltdown hit us.....
     
  2. j-glock22

    j-glock22

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    Something to keep an ear to the ground for sure... interesting
     

  3. BigKid

    BigKid

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    Bakersfield, CA
    Especially on the heals of Citibank announcing that they could initiate 7 day holds on all withdrawals. I'm gettin a tad worried...
     
  4. G29Reload

    G29Reload Tread Lightly

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    Just an uneducated guess, but if the Chinese and other outsiders start feeling too dicey to hold onto our currency, we'd have to sweeten the deal to keep them borrowing our worthless toilet paper:

    Raise interest rates.


    It happened the other day...they raised one of the interbank rates by a quarter. Not earthshaking, but look to see if it becomes a trend.

    When it comes to preps, financial is part of it. Those of you so able should increase your aboveground (hands on) cash. Whether its an EMP attack and a freezing up of electronic banking, or a declared bank holiday to prevent a panic run, it would helpful to keep 1-3 months of living expenses, in a safe deposit box or a safe at home.
     
  5. certifiedfunds

    certifiedfunds Tewwowist

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    Houston
    If any of your scenarios occur, a SDB is not hands-on cash.
     
  6. .357 Glocker

    .357 Glocker

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    Jan 15, 2010
    PNW
    There are so many bad scenarios that could play out in the near future and so few good ones. The Chinese could decide to dump our debt on the open market and that would likely lead to an overnight collapse of the USD. I don't think they will do it because there is a substantial short term downside for them (they lose a crap-load of money) but it could happen.

    The Fed could start raising interest rates substantially to protect the USD from collapse. This will have to happen sooner or later but think they will resist it to the bitter end because it would exploded the interest payments on an already barely manageable national dept and also lead to a catastrophic collapse in the housing market (among other things).

    The USD could just collapse for a whole laundry list of reasons and the Fed could completely lose control of interest rates. at any rate the odds of major badness in occuring is rather large at the moment.
     
  7. G29Reload

    G29Reload Tread Lightly

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    Sep 28, 2009
    Well its one thing to say the tellers are closed. Blocking people from their personal posessions is kind of extreme.

    OTOH, nothing would surprise me anymore, so I do both. Split the risk, if you will.
     
  8. 9mm +p+

    9mm +p+

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    Old Dominion
    1-3 months of living cash on hand?? That is completely unrealistic for 95% of us, myself included. If it goes down like this alot of folks are boned and we will start seeing all of the stuff we've feared coming true...
     
  9. certifiedfunds

    certifiedfunds Tewwowist

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    Houston
    [​IMG]

    [​IMG]

    [​IMG]

    Doors appear to be locked.
     
  10. G29Reload

    G29Reload Tread Lightly

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    Sep 28, 2009
    Well, yeah, but you don't know if they made separate arrangements for box holders.

    Look, I just wanna get get grandmas ring out for the wedding,

    Selling a car and I need the title...

    etc, etc.

    No point in telling folks they cant have their stuff. Look,we're closed but we'll be open on Sat from 9-12 for SDB's.

    No tellers.

    Actually, more recent experience with this (MD S&L crisis, mid 80s) they were starting to get runs on institutions, so what they did was limit withdrawals to 3k a week, or something like that. Smart, let people cover the bulk of their activities, money continued to flow but shut off the stampede and avoid the psyops problem of locked doors.

    It worked out as I recall.
     
  11. How does this effect things like online bill pay and direct deposit. Would your money still be accessable? Work puts money directly in, can u still pay bills via check or through cyberspace?
     
  12. Interesting... might be worth it to start pulling out cash in small increments to build up a reserve.
     
  13. CrazyFeet

    CrazyFeet

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    Jan 18, 2008
    Look it is definitely time to move cash up the priority list. hopefully you have some type of savings account or a budget or something if not well things might be rough but you have to start putting away some cash. sacrifice a little bit everywhere else to pocket a few extra bucks and put it between the mattress or gun safe or fire box or dig a hole in your back yard but do something.

    do it now incase it is to late next month.. worst thing is that you save money on ATM fees and gas going to get your cash out of the bank.
     
  14. Aceman

    Aceman

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    Tampa
    And of course - the original post is not a Chinese plot. They would NEVER use the intarwebs to sow dissent....

    Honestly - if I'm a megabank etc....I'm pulling your user info/ip, finding your brother in law and he'll be MIA by Monday. I'm sure he'll be thrilled you outed him on the web.
     
  15. certifiedfunds

    certifiedfunds Tewwowist

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    Houston
    What if next month the .gov announces a formal devaluation of the currency?

    What if they don't announce it, but the currency gets devalued 30 or 50% by a policy action?
     
  16. whogasak47

    whogasak47 JPFO-GOA

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    Sep 1, 2005
    N E Louisiana
    Outstanding Observation. In 1929 if you had $5 grand in _____ National Bank the day before the music stopped, you had 5 thousand Dollars. The next day $0.00. The Fortunate few that had $ 5000.00 socked away at home the day after effectively became rich, due to the fact they could pay CASH, for goods and services. My grandfather was like that and bought a 240 acre block of good farm land for $240.. cause had had the cash to back up his bid. Grandparents were also a strong believer of silver dollar coins. They tended to solve many small transactions. Paper was not trusted for a long time after 1930.
     
  17. rwrjr

    rwrjr

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    May 25, 2007
    Northern VA
    I don't think they could pull off a formal devaluation simply because the dollar is currently the reserve currency of the world and because of the shear size of the problem. A formal devaluation would literally shock the world and cause the financial markets to tank. Also, what's to stop everybody else from flipping the bird back our way with a counter devaluation?

    Now policy actions to generate devaluation, whether through inflationary measures or other means is exactly what they're going for. This screws all who saved and rewards the risk takers, especially the Wall Street banksters and their K Street henchmen.
     
  18. eb07

    eb07 Sharkin'

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    Third Rock From the Sun
    See Argentina.....
     
  19. rwrjr

    rwrjr

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    May 25, 2007
    Northern VA
    Oh, and the next round of bank runs won't be people lining up at teller windows. It will be electronic transfers baby. If a bank, or set of banks, is weak and this becomes common knowledge, they can literally be bled dry overnight.

    When my bank, which was one of the stellar banks during the S&L crisis, showed how shaky it was this go around I was able to move every dollar from three different accounts to a solid credit union with just a few clicks.

    Hmm, makes me wonder if the new Citibank policy is for this sort of electronic run. I know if I had money in Citi it wouldn't be there for much longer. I'm just saying...
     
  20. certifiedfunds

    certifiedfunds Tewwowist

    53,894
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    Apr 23, 2008
    Houston
    My point is, if you're holding a bunch of cash, either above or below ground, they don't necessarily have to have a bank holiday to steal your money. And FDIC insured money is the safest money in the world. Depositors WILL get their money, dollar for dollar.

    Question then becomes "What value will it have?"

    So what could you hold in place of a portion of your cash to prevent this?