President Biden has just reassured Americans that our banking system is safe.
"Every American should feel confident that their deposits will be there if and when they need them."
At the same time, scores of banks' shares were withdrawn from trading this morning for no obvious reason, except that people were trying to dump them as fast as possible for whatever they could get. Evidence (clickit to biggit):
Given that boots-on-the-ground reality, in the face of President Biden's record of lies, damned lies and mendacity, that does it, as far as I'm concerned. If he says things are green, we can safely assume that they're really flaring a danger warning in bright red, and getting redder by the minute. I don't believe a word he says on any subject, so why would I believe his assurances about our banks?
Time to implement our emergency financial plans, methinks. I withdrew some extra cash for our stash not an hour ago.
Peter
20 comments:
Cash on hand is a good thing, but (there is always a but) stores and truckers run on credit.
When I was trucking a failed credit card was a trip ending event. Nobody carried enough cash to fill up their tractors (unless for a bob tail drop your trailer and head home run).
That means that stores have what they have on hand right NOW if a credit freeze occurs.
All the cash you have cannot buy what is not there.
I spent the weekend looking over my supplies for gaps.
A 50 dollar bill is only worth what you can buy with it. It's a poor fire starter, cannot patch a pair of jeans with it and so on.
And I just deposited a crapton of cash on Thursday.
Fortunately, we're in a Credit Union (supposed to be safer) and hubby keeps cash on hand.
Grumble... I didn't have bank failure on this month's BINGO card...
This kind of disruption is one of the reasons I bank with credit unions. Smaller entities, owned by the members, and lots of small depositors, no half-billion dollar elephants like Roku was for SVB. This also confirms my dislike for all the non-bank payment transfer companies like Venmo or Square...
Paypal's political shenanigans make them offlimits too.
Biden should have his black, lesbian, glass ceiling-shattering PS go down to Burger King and get him one of those paper crowns, because he is TRULY the HOME OF THE WHOPPER! I wouldn't believe ANYTHING that traitor says! In fact, if he says our banking system is safe, BELIEVE EXACTLY THE OPPOSITE!!!
Withdrew 600 bucks yesterday and tomorrow the same. And Thursday as well. Good luck All!
I've been saving my surprised face for just this occasion, but dontcha know it doesn't work anymore?
FWIW
https://joannenova.com.au/2023/03/silicon-valley-bank-was-a-big-green-government-ponzi-scheme/#comment-2640668
And
“Sorry, No Empathy, No Bailouts And YES I MEAN IT”
“Oh but so many climate-related firms are going to fail to make payroll! – Any one of a thousand Internet scolds.
My answer: So what?
Next up – Republic, which apparently had lines out the door (if you believe the Internet) on Saturday. Again: So what?
Folks, bubbles attract stupidity. Stupidity is a constant in the universe; in fact it is likely the only thing that is truly infinite (with all due respect to the late Mr. Einstein.)”
More at
https://market-ticker.org/akcs-www?post=248301
I think you're right about this is going to be very bad, especially after reading this.
https://www.sovereignman.com/trends/if-svb-is-insolvent-so-is-everyone-else-146244/
All information will be given out on an after-you-needed-to-know-about-it basis.
When you step on a mouse tail, you can stop the mouse.
When you try the same thing to stop the anchor on an aircraft carrier, you get jerked off your feet and pulled overboard.
Financial collapses are a lot like earthquakes: a come-as-you-are affair, with little final warning.
I'd be interested in an analysis of which banks are seeing a run - I don't recognize any of the symbols listed; guessing based on what little I know about the banks that are having trouble, they appear to be newer second or third tier banks, rumors say that they were focused on a particular industry which definitely makes them vulnerable to movement in that industry.
I'll be curious to hear more of what happens in the future...
The criminals in power aren't through looting the treasury. Therefore they aren't going to let the banking system collapse.....yet.
A number of years ago I instituted some Procedural Changes in Financial Management: I moved all monies from the two bans with shich I dealt into a pair of unaffiliated credit unions, both of which had outstanding records and reputations. Direct deposit, which is a requirement from almost all payers now, was split between the two.
Automatic payments were set up at each to cover the standard monthly expenses, with the caveat that no more than $250 would remain in each of the checking accounts after all payments were made. Above that amount, an amount was transferred into savings accounts at each credit union to build a saving total not to exceed $1250, which could be easily transferred to checking to cover sudden expenses. All amounts above the total in the two accounts was withdrawn as cash, to be kept in a "ready cash condition." It was required, and stipulated in my documents with each credit union, that absolutely no linkage would exist between checking and savings account, nor would there be any type of overdraft protection - I bounce a check, I pay the "pain fee" but I'm also not liable for "computer errors" or fraudulent activity that could drain my checking accounts and increase my debt load through automatic overdraft protection.
Of the amount in "ready cash," 50% was maintained in that status while the remainder was used to procure physical goods of necessity; "money on hand" is good, but the entire, and only, purpose of "money" is to exchange it for goods, be they material goods or experiences (training classes, vacations, etc.).
Once a reasonable amount was established in ready cash, the ready cash amount was cut to 50% with the other half used to procure precious metals, primarily "junk silver" - pre-1964 US coinage - and small denominations of gold.
I am incredibly fortunate that I have no major debt - no mortgage, no car payments, no loans - so my liability extends only to routine and basic living expenses beyond the minimum monthly expenditures required to maintain reasonable living conditions. A certain amount must be spent to cover electricity, heat, fuel, food, and add to "necessary stored material goods" etc. but beyond that everything is optional and, with some effort, easily regulated.
There are predictions that late summer / early fall 2023 will be "adventuresome" and I have no doubt that will be the case. We're well overdue for the "chickens coming home to roost," and I strongly suspect by the end of 2024 America, and the rest of the world, will look very, very different.
We're approaching the implementation of the Kill House Rules:
1. NOBODY IS COMING TO SAVE YOU
2. EVERYTHING IS YOUR RESPONSIBILITY.
3. SAVE WHO NEEDS TO BE SAVED.
4. KILL WHO NEEDS TO BE KILLED
5. ALWAYS BE WORKING
Gruesome prospect, indeed, but do not ever forget that "Civilization" is an entirely artificial construct and subject to modification - radical modification - at any time.
$10K in cash is about the minimum IMHO.
Suddenly I don't feel that sorting out the stored canned goods is so urgent. And once again I wonder if I have *enough* kerosene... and Other Things.
It's nice to have a big pile of cash but a big
pile of beans,bullits and bandaids is better.
FWIW
“BIDEN CRISIS: Moody’s Downgrades Banking Segment to “Negative”, Assets in US Banks Are $2 Trillion LESS than Their Balances”
https://www.thegatewaypundit.com/2023/03/biden-crisis-moodys-downgrades-banking-segment-to-negative-assets-in-us-banks-are-2-trillion-less-than-their-balances/
i wish i had any left in the bank to take out, lol. i'm 6 weeks away from getting my second pension. i told my wife years ago i will not likely see that money.
@ Michigan Doug - "Those beans, bullets and band-aids?" That's what I was referring to with "...the remainder was used to procure physical goods of necessity..."
One's first duty is to make sure one's funding sources are secure and not subject to institutional legerdeman or incompetence, and to use those funds for necessary items. As you pointed out, having cash, or barterable precious metals is nice, but one can neither eat nor shoot greenbacks and gold, and I very strongly suspect "eatin' and shootin' " will be considerably higher on the priority list than they are now and sooner than we'd like.
I wish it were not so, but I'm afraid my wishes count little in the schemes of the schemers currently in charge.
Rick T: Credit unions have not always been safer. A whole lot of them went bankrupt around 1983. This was due to special circumstances, but it happened.
They had made big loans to oil drillers, especially the new wildcatters that sprang up in response to the oil shortages and sky-high prices of the 1970's. The new drillers had no experience in the oil business, and the CU's and small banks that loaned to them were equally inexperienced. Oil was selling for over 5 times what it had in 1972, so investing in drilling seemed like spotting a gusher spewing money and buying a bucket - how could it go wrong? The new firms were drilling everywhere, and going as fast as they could, never mind the cost.
Some came up dry and went bankrupt, but others hit plenty of oil. The bankers allowed for that by creating loan pools, many CU's going together to finance many wildcatters, spreading the risk. That part worked fine; on the average, the oil production was at least as much as the bankers expected, and the loan pools were big enough to follow the average.
BUT when all those new oilfields started producing within a few years, the price of oil plummeted. (IIRC, allowing for inflation as observed in everything else, I figured gasoline was a little cheaper in 1982 than in 1972.) The big old oil companies were OK, because this wasn't their first rodeo and they'd held their costs down like always. But most of the wildcatters had spent much more per well than before the 1973-74 oil panic, and now their oil wasn't selling for enough to make their loan payments. They went broke, and their lenders went broke.
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