[USA] Are Your Bank Deposits Safe?

[Jake]

http://finance.yahoo.com/tech-ticke...y-About-Bank-Deposits-if-Congress-Doesn't-Act

Kind of a scary thought, even if it isn't likely...

 

[GF]

I know just a small handful of people who keep more than $100,000 in their bank account.

Bank deposits are safe

 

[whitebark]

I know just a small handful of people who keep more than $100,000 in their bank account.

Bank deposits are safe

They are only safe if the money exists to cover those insured. A complete collapse will have much the same consequences as that has happened before. Most recent example would be in Argentina. IF such a collapse occurred the American dollar would be so devalued your $50 G's in savings would be worth far less - and you'd be likely to receive the adjusted amount instead. And that's only if someone like China or Japan is willing to loan yet more money to a bankrupt nation. Otherwise the US treasury will just print more worthless money creating hyper-inflation while creating even more debt.

I'm hedging my bets - I'm on the way to the bank after this message to convert a large portion of my savings into gold and platinum.

The world's economy is on very shaky ground - we could be seeing a depression in the making.

And here is a test for you. If you have a large amount deposited in your account ask for it all at once in cash. They won't give it you in cash. They don't have that much cash on hand - they never do. Fractional reserve lending is what is behind much of the current economic troubles. No bank has enough enough money to pay out all accounts on record in a short period of time. If there is a run on the banks with everyone asking for their money people will quickly realize what a mess our financial systems really are in.

 

[dgridley]

My money is never in the bank long enough to worry about it, lol! It's spent as fast as I get it!

 

[SpareDomains]

And here is a test for you. If you have a large amount deposited in your account ask for it all at once in cash. They won't give it you in cash. They don't have that much cash on hand - they never do. Fractional reserve lending is what is behind much of the current economic troubles. No bank has enough enough money to pay out all accounts on record in a short period of time. If there is a run on the banks with everyone asking for their money people will quickly realize what a mess our financial systems really are in.

reminded me of one of my favorite movies...

http://www.youtube.com/watch?v=MJJN9qwhkkE

 

[whitebark]

reminded me of one of my favorite movies...

http://www.youtube.com/watch?v=MJJN9qwhkkE

A classic movie! Good to see people who know their classics! Let's just hope we don't end up riding the trains from one end of North America to the other looking for work like the 30's!

 

[Kate]

Roy is right on the money once again
What many people fail to see is that your savings are already being eroded by inflation in 'normal' times.
Currency isn't backed by anything tangible. Just by governments and the confidence of the markets.

 

[rocker314]

our money is safe.

 

[Rudy]

While what you guys are saying is indeed possible, you need to realize that we (Americans) have not experienced any sort of depression yet. A "depression" is when the economy is contracting. Our economy is not contracting and has not contracted in a long time.

Just the rate of growth has decreased. But we are still GROWING. Furthermore, as we all know that the stock market and loans affect our market greatly, I think that it should be pointed out that people who have invested in the market for long term growth should not be overly concerned. Yes, the market has taken a VERY big hit the past couple of months - just look at earlier this week with the announcement of AIG.

But, as we witnessed today, the market has the ability to bounce back.

 

[homebuyer]

Now Now

I know just a small handful of people who keep more than $100,000 in their bank account.Bank deposits are safe

I disagree. The accounts that have less than 100Gs may be insured, but it doesn't necessarily follow that you'll get your money reimbursed quickly. If the crisis is big enough, then it could take years for depositors to get their money back. In the meantime, there goes your house, car, and life as you know it. No kidding.

Take a look at this article to get an idea of how bad things could become:

http://www.spiegel.de/international/business/0,1518,578944,00.html

I wonder how this crisis will affect premium domain prices? Maybe domain investments will become safer than gold investments. Maybe one day I could evn trade weaves.biz for a mansion in Florida. OMG, I own two three-letter .biz domains - whoohoo! I'm eating tonight.

 

[labrocca]

I laugh at people calling this a crisis. It's all about consumer confidence. I am no richer or poorer than I was 2 years ago...or heck..10 years ago. I live better today than I ever have. I can buy my groceries, go out to dinners, see movies, buy my gas, and everything else that are luxuries in American life that other nations don't have.

I could care less if banks fail. I barely keep money in them anyways. Banks are failing because people owe them money and aren't paying it back. How does that hurt consumers? People get $10,000 from the bank...then just keep it. Should I feel bad for instutions that have for DECADES been one of the wealthiest segments of our society? Should I feel bad for companies whose main purpose is to give you money then charge you more money for doing it.

 

[Keral_Patel]

I keep money in GOVT bonds. All the money in mutual funds market and other places is costing me a lot. Everything is down

On other hand I buy houses or land which can be rented anytime if in future I have no money to even buy my food

Give me food and I will let you live in my houses :D

If you are not ready to rent my house, its okay I will start growing my food in my own land

 

[whitebark]

I laugh at people calling this a crisis. It's all about consumer confidence. I am no richer or poorer than I was 2 years ago...or heck..10 years ago. I live better today than I ever have. I can buy my groceries, go out to dinners, see movies, buy my gas, and everything else that are luxuries in American life that other nations don't have.

You don't FEEL poorer but you are. America has added upwards of another trillion to their debt - you all have to pay that back with interest due. And this isn't over yet. American consumer debt is nearing $2 trillion - there is not much left to borrow and spend.

When the world's bankers have to convene with central banks like the Bank of Canada extending money to keep the American economy from flushing with the bath water - that IS a crisis.

 

[kev]

went down to the Bank of Scotland today to withdraw every penny i own after the bank was about to go bust and luckily was bought over by Lloyds. Although, I have half of my money in an investment scheme that the bank runs...not had any word about this so i could have lost a helluva lot of money :td:

I could care less if banks fail. I barely keep money in them anyways.

It's the thousands of regular employees of the bank everyone should feel sorry for. I know many people who work for the BOS who are about to loose their jobs.

 

[homebuyer]

No Kidding?

went down to the Bank of Scotland today to withdraw every penny i own after the bank was about to go bust and luckily was bought over by Lloyds. Although, I have half of my money in an investment scheme that the bank runs...not had any word about this so i could have lost a helluva lot of money :td:



It's the thousands of regular employees of the bank everyone should feel sorry for. I know many people who work for the BOS who are about to loose their jobs.

It's that widespread? I wonder how much money my mattress can hold. On a somewhat related note, I bet the guy who bought gold.biz last year for $3,000 is feeling pretty good right now.

 

[labrocca]

You don't FEEL poorer but you are. America has added upwards of another trillion to their debt - you all have to pay that back with interest due. And this isn't over yet. American consumer debt is nearing $2 trillion - there is not much left to borrow and spend.

When the world's bankers have to convene with central banks like the Bank of Canada extending money to keep the American economy from flushing with the bath water - that IS a crisis.

I would like to see someone just try and collect from America. The world she be kissing our asses for creating such a global economy. If we stop paying our debt...the world economy collapses. This will never happen so it doesn't matter how much debt we have. It could be 100 trillion and it's pointless if you can't collect it. As a matter of fact...just to save the $10 trillion I hope we go to war...kick some arse...then tell whoever we owe to F off. Yes I realize it's mostly the Chinese we owe. So let's do it! War baby!

 

[Chicken]

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