Banking

[TominMO]

Bank bail-ins are coming. Soon. If you have not been paying attention to this until now, it is time to start.

What this means is that your assets in banks can be frozen so that you cannot withdraw them. This is to help keep the banks themselves solvent. What many people do not know is that the banking rules and laws are written so that once your money is deposited into your account, it actually becomes the property of the bank itself. Your funds are just "shares" in the bank.

And BTW this also applies to safety deposit boxes.

The most at risk for this practice are the largest US investment banks:
JP Morgan Chase
Bank of America
Wells Fargo
Citigroup
Goldman Sachs
Morgan Stanley
But it is not necessarily limited to them.

The least at risk are smaller, regional and state banks, and credit unions.

Recommendation: Have enough physical cash on hand that you can buy groceries and other needed consumables. As far as using your checking account to pay bills, I am not sure about that. The bail-ins may only take the form of limiting the amount of daily cash withdrawals, but permit you to draw on your account by writing checks. People still have bills to pay after all; imagine how pissed off people would be if they could not pay their utilities or credit cards or mortgage, and got into trouble over that through no fault of their own. I only keep enough in checking to pay my monthly bills. The rest I keep in cash.

Anyway, you have now been given the official heads-up, so please take appropriate precautions.

[Emerikol]

I know this is probably going to come back to haunt me, but I don't see bail-in's becoming a thing in this country. Greece was the most famous of the recent bail-ins, but Greeks are prodigious savers, and they had more than 70% of their life savings in banks. Americans, by comparison, are very poor savers. Most American checking/savings accounts have less than $1,000. The banks you mentioned are all on the hook for Billions of dollars. There just aren't enough deposit accounts with enough money in them to make a bail-in worth the consumer and political blowback. What is more likely to happen is there is some sort of seizure of corporate accounts under the guise of "paying their fair share", but the problem with that is a) who decides what a "fair share" is, and b) any losses will be passed on to consumers in the form of higher costs and prices. As for keeping cash on hand, that's not a bad strategy, but cash has less than face value, especially now, due to the huge inflation pressures that are swirling around the economy right now. I would say look into the IntraFi program (Formerly CDARS) https://www.intrafi.com/solutions/depositors/ to spread any deposits in the excess of the FDIC limits across several accounts. CD's are also a good option because it's a financial instrument that you hold onto personally, and there's no way to move the goalposts on it once it's issued, that means that they won't be able to lessen the face value of the CD when you go to cash it in. If you ladder them (a twelve month CD every week for a year, for instance), there's no limit to what amount you can have on account.

[TominMO]

NYSE trading halted for 30 banks.
https://www.thegatewaypundit.com/202...harles-schwab/

[Sport Rider]

as there are FDIC insurance levels, unless you have $ in the bank above that limit, you're not at risk.

[Fast_Freddy]

Originally Posted by Sport Rider

as there are FDIC insurance levels, unless you have $ in the bank above that limit, you're not at risk.

I have nothing to worry about.

[XLsior]

3 banks in 5 days...there will be ripple effects.

I prefer real hold in the hand assets,but... just because it wont effect me directly in a financial sense the consequences will be felt in a round about way.

[Thumper]

Real Estate (not homes). Our investments are in farmland/agricultural land. Houses can be good if you are handy. We didn't have the spare time (careers), so we chose property. For the States we are in, maintaining the agricultural/farming tax exemption just means setting up low cost leases to active ranchers/farmers. They handle the livestock report and pay taxes on their hay/livestock/alfalfa sales and occupancy records. The tax discount on the land itself is astonishing.

You can't call it a liquid asset, but it is a durable asset that no bad bank management can lose.

[TominMO]

Originally Posted by Fast_Freddy

I have nothing to worry about.

Me neither. Also, I have never lost nor will ever lose a penny in the stock market, due to my brilliant and foolproof investment strategy. I don't invest, due to being too poor to do so. I own my home and car and everything else outright, and only have some credit card debt.

[TominMO]

Originally Posted by Sport Rider

as there are FDIC insurance levels, unless you have $ in the bank above that limit, you're not at risk.

Almost everyone with a bank account knows this, true. But the point is about access to the money in the accounts. The bank does not have to give it to you on demand. If we have another giant financial crash like in 1929, the banks can save themselves. Then eventually you will get your (greatly devalued) money.

The banks do not keep cash on hand to meet 100% demand on all accounts. More like 1%. That is fractional reserve banking. https://www.investopedia.com/terms/f...rvebanking.asp

A major crash also gives credence to those pushing for a CBDC (central bank digital currency). You're going to hear a lot more about this in the future. In everyday human affairs, centralized is a bad thing, and decentralized is good. It's all about who has the control.

[XLsior]

Best way I can explain how the whole monetary banking system game is played is just linking to this 10 part series by Mike Maloney.

https://www.youtube.com/playlist?lis...L2O09eJoC8r7Dc

[TominMO]

Originally Posted by XLsior

Best way I can explain how the whole monetary banking system game is played is just linking to this 10 part series by Mike Maloney.

https://www.youtube.com/playlist?lis...L2O09eJoC8r7Dc

Thanks, I will probably watch some of that, but probably not six hours' worth.

A major rule of thumb is that laws are always crafted to benefit the shot-callers. The People Who Matter in societies. You and I ain't in that club.
-- The US Congress has exempted itself--and only itself--on rules against insider trading. They were called out on this a few years ago and rescinded that rule; then quietly reinstated it about six months later.
-- Government and the big banks and corporations will always be serviced first, at the expense of the little guy/gal.
-- Mainstream media will always align itself with power.

This is the way of the world. Your options:
1. Become a shot-caller, or get close to that group so you are protected.
2. Keep your head down and muddle through as best you can (99% of humanity).
3. Don't play the game. Similar in appearance to #2, but you are not concerned about the outcomes. We all die eventually anyway, and all the toys we have collected won't mean diddly any more.

[XLsior]

Its not so much 99% vs 1%.

I would argue that there is no 'protection' at the inner circle on the 'top' there is price to pay to be included...

Nature typically works in an 80-20 ratio. (Pareto Principle)

the system collapses when members of your group 3 manage to break the programming of group 2 because its mutually benifitial to both groups..

Group 1 will become more desperate as they lose grip and double down control with more lies and manipulation... the system crumbles

what replaces it is a mystery...but we're heading into hard times.

[TominMO]

Originally Posted by XLsior

Its not so much 99% vs 1%.

I would argue that there is no 'protection' at the inner circle on the 'top' there is price to pay to be included...

Nature typically works in an 80-20 ratio. (Pareto Principle)

the system collapses when members of your group 3 manage to break the programming of group 2 because its mutually benifitial to both groups..

Group 1 will become more desperate as they lose grip and double down control with more lies and manipulation... the system crumbles

what replaces it is a mystery...but we're heading into hard times.

As the Chinese proverb/curse states, "May you live in interesting times."

Group 1 will always be fine. At least the ones at the top of group 1. They are protected by the system. IE most politicians and judges are bought off by them. Goods and services catering to them will also always be fine. The most expensive cars, the most exclusive restaurants and resorts. It's the middle managers who jump off skyscrapers.

Group 2 (normies) will always be the largest group by far. Most people do not want to know what is going on. They are satisfied with the bread and circuses provided by group 1. Human nature overall has never changed since long before the Romans were in charge. Of course, group 2 people get blindsided all the time by The System.

Group 3 is a tiny and fairly ineffectual minority. Growing, true, but still.
-- Some (3A) are idealistic and energetic reformers looking to make meaningful change. They of course are the ones targeted by the minions of group 1. MSM, lawfare, character assassination, actual assassination. I do not see 3As having deep and long-term success, because of the power of group 1s and the compliance or cluelessness of 2s.
-- Others (3B) believe this is only going to work to a slight degree. When the USA was founded as a separate entity from Great Britain, it was a wonderful thing. Very idealistic. But human nature began its corrosive process about five minutes afterwards. The people who seek temporal power are already the most morally and ethically challenged, or become so once they get power. Not 100%, but often enough that the few people with integrity stand out.
-- Whether actually true or not, I see this world as in effect being Purgatory. The human dynamics will overall never change, because this is how it is intended to function. We will always have sociopaths and psychopaths trying to run things solely for their own benefit, in government and business, and the (somewhat less evil) morally squishy hangers-on who are aligning themselves with these people, also for their own benefit. This happened in Rome, Nazi Germany, the Soviet Union, mainland China, and now the USA.

Pick your group. Bearing in mind that nobody is immortal. What really matters in the long run?

[herbie]

This is all very interesting and scary stuff at the same time. As I am getting closer to retirement I just moved all 401k money over to CDs at my local bank, not a small bank. I’ve been concerned since all this stuff started happening, I don’t have a lot but what I do have I don’t want to loose. I guess time will tell what’s going to happen but I’d like to be prepared for the worst. I’m glad it’s being talked about here, at least maybe you guys who are in the know a little bit can share with the rest of us. Financial stuff hasn’t been very interesting to me until I’ve gotten old, probably too late now though

[Wild Dog]

From my own experience if possible withdraw all the money you can.
If we sum everything that's been going worldwide, there is a good chance that many banks in the US will limit how much money they allow to withdraw