Record withdrawals at U.S. banks as Americans lose trust in financial system

www.naturalnews.com...

the latest figures released by the privately-owned Federal Reserve (FED) indicate that America's largest banks saw record cash withdrawals during the first full week of January 2013. As reported by Bloomberg Businessweek and scant others, account holders withdrew a record $114 billion in just one week, which represents the largest one-week withdrawal sum made in America since the September 11, 2001, terrorist attacks. The data, which accounts for all cash withdrawals made from the nation's 25 largest banks, has reportedly shocked many financial analysts who say they are unsure exactly what sparked this minor bank run. Some have speculated that the December 31, 2012 expiration of the Transaction Account Guarantee (TAG) insurance program, which was designed to protect smaller banks from insolvency, may have played a role in triggering what appears to have been a wave of panic withdrawals. Learn more: www.naturalnews.com...

I sincerely doubt that excuse, since the bulk of these withdrawals were made at larger banks that were not covered by TAG, Another more likely explanation is that Americans are simply freaked out with the current state of the financial system.
This is further reinforced by a similar run on "physical" gold around the exact same time, suggesting that depositors are anticipating rocky times rapidly approaching.

Sadly what people don't know is that the gov has made it clear they have the right to make everyone turn in this gold and silver or face massive jail time.

People would be wise to buy gold and silver american coins as collectors under the junk coin selection as the gov usually doesn't touch american coinage. Bars and leafs on the other hand are fair game.

Originally posted by winterkill
www.naturalnews.com...

the latest figures released by the privately-owned Federal Reserve (FED) indicate that America's largest banks saw record cash withdrawals during the first full week of January 2013. As reported by Bloomberg Businessweek and scant others, account holders withdrew a record $114 billion in just one week, which represents the largest one-week withdrawal sum made in America since the September 11, 2001, terrorist attacks. The data, which accounts for all cash withdrawals made from the nation's 25 largest banks, has reportedly shocked many financial analysts who say they are unsure exactly what sparked this minor bank run. Some have speculated that the December 31, 2012 expiration of the Transaction Account Guarantee (TAG) insurance program, which was designed to protect smaller banks from insolvency, may have played a role in triggering what appears to have been a wave of panic withdrawals. Learn more: www.naturalnews.com...

I sincerely doubt that excuse, since the bulk of these withdrawals were made at larger banks that were not covered by TAG, Another more likely explanation is that Americans are simply freaked out with the current state of the financial system.
This is further reinforced by a similar run on "physical" gold around the exact same time, suggesting that depositors are anticipating rocky times rapidly approaching.

Sadly what people don't know is that the gov has made it clear they have the right to make everyone turn in this gold and silver or face massive jail time.

People would be wise to buy gold and silver american coins as collectors under the junk coin selection as the gov usually doesn't touch american coinage. Bars and leafs on the other hand are fair game.

Buy precious stones like diamonds for investment. They once upon a time were considered a poor investment, but the demand is outpacing the supply due to demands in China and India. Diamonds are also much easier to store and transport.

The only problem with diamonds exists with person to person trade that might be needed, so also keep small silver coins for smaller trades.

So if you knew the system was about to crash, would you pull your money?

Originally posted by winterkill
So if you knew the system was about to crash, would you pull your money?

Not if natural news told me to pull it out.

They're considered one step above The Examiner.

reply to post by winterkill


If it's true, this is a very good indicator of how far along in the process we are.

However, if the system is about to crash, won't the paper money be useless anyway? I agree that small amounts of junk silver may be a good idea, but you can't eat money, of any kind.

Maybe it's time to go to the grocery store instead? Just my 2 cents.

Copper and silver are good things to invest in. I don't see copper going down much anymore, the cost of mining it is way up. The nice thing about copper is that it can be easily sold to scrap yards. You don't need ingots or anything with copper either, any scrap copper will work.

Silver is good also but the price of this can easily go way down fast so it is not a real safe investment. I think gold is a poor investment myself unless you bought it long ago when it was a lot cheaper. It's hard to trade on a little basis, say for buying some groceries.

perhaps there's more to the fed's push to fix the too big to fail rules.

www.bloomberg.com...

I've heard, from a politician friend of mine, that the issues our economy is facing are far worse than the government lets on (no surprise there) and, perhaps, there's a serious risk to one, or more, of these tbtf banks.

Originally posted by woodsmom
reply to post by winterkill

 

If it's true, this is a very good indicator of how far along in the process we are.

However, if the system is about to crash, won't the paper money be useless anyway? I agree that small amounts of junk silver may be a good idea, but you can't eat money, of any kind.

Maybe it's time to go to the grocery store instead? Just my 2 cents.

The problem with buying precious metal and daimonds and so forth. And the system crashes. Is that you wont have acces to your resources. So basically you have wasted money.

I wonder if the buying up of Ammo and Guns has people pulling there money out to purchase a gun. 3 years of stockpile gone in 3 weeks. Just imagine if that was food, and not guns. That should be a huge wake up call for everyone. We are getting closer to the actual crash, that everyone knows is coming, and only people who have planned and made early investments in Food, Water, and Necessary items.

Originally posted by woodsmom
reply to post by winterkill

 

If it's true, this is a very good indicator of how far along in the process we are.

However, if the system is about to crash, won't the paper money be useless anyway? I agree that small amounts of junk silver may be a good idea, but you can't eat money, of any kind.

Maybe it's time to go to the grocery store instead? Just my 2 cents.

paper money would be about worthless but precious metals would still be a viable option considering you have two choices, trade in small pieces of PM's or haul your wares around with you to trade, first choice being far easier on the back, which is why they placed value on PM's in the first place.

reply to post by LittleBlackEagle


I understand where you guys are coming from. I guess I have a different perspective, living in Alaska, if something major happens then we are cut off. Food is about the only viable resource that would help anyone much, to begin with at least. We are pretty remote and losing the ability to procure food would be devastating.I have found that it is pretty easy to drop several hundred dollars at the grocery store. For many people that may be the only reasonable option, to empty out an already skinny account to buy as much food as possible.

I agree on having something to fall back on monetarily, I just don't see people being in need of pm's initially. Our kids would be well off, eventually. That's not to say that my family hasn't taken precautions in precisely this area either. We have had a bit of fun with it though. My hubby finds me one nice piece of jewelry a year. Always gold, sometimes even nuggets, with the odd gems thrown in. It gives us easy trade items under those circumstances, and buys him brownie points . It also prevents anyone that you may have to trade with from thinking that you have a hoard somewhere in your house. Most people have a piece of jewelry or 2.

Smart. That's why I tell people to pick up junk silver dimes and 25 cent pieces etc. Silver will hold for trading purposes better than an item the person you wish to deal with might not want and it doesn't give the impression you have a hoard.

Money will be legal tender as long as this government is in charge. That means that it will have to be accepted or the police can be called. There is nothing there as to what value it will have though. It could cost a hundred dollars for a bag of potatoes. The price of metals and other valuable items will go way up as will all things you buy. Hyper inflation will result. Food is a commodity and has a value set to it that can fluctuate. It is legal for food prices to go sky high. If you have a lot of food in an emergency, the government has the right to confiscate it under the "good of the people" rule. I wouldn't stock huge piles of food for this reason, they have laws that make a person a sort of terrorist if they don't share their foods and people may not be prosecuted if they form a mob and steal your food. It seems that the people who are trusting of the government and are wasteful and unprepared are protected more by the law than the conservative prepared person. This is a ridiculous policy, protecting the gullible and punishing the responsible people..

Oh well, that's the way it is. This form of economy is messed up. Risk takers are rewarded consistantly.

reply to post by winterkill

Another more likely explanation is that Americans are simply freaked out with the current state of the financial system

In my case, i have less money in the bank because everything is getting more expensive.
I used to have at least a grand in there at all times, but now I live paycheck to paycheck.

Originally posted by spy66

Originally posted by woodsmom
reply to post by winterkill

 

If it's true, this is a very good indicator of how far along in the process we are.

However, if the system is about to crash, won't the paper money be useless anyway? I agree that small amounts of junk silver may be a good idea, but you can't eat money, of any kind.

Maybe it's time to go to the grocery store instead? Just my 2 cents.

The problem with buying precious metal and daimonds and so forth. And the system crashes. Is that you wont have acces to your resources. So basically you have wasted money.

edit on 27.06.08 by spy66 because: (no reason given)

Not just that, but when it does crash, they won't necessarily be deemed worthy. Maybe years down the road, once things are rebuilt, but not at the beginning.

Food, firearms, and alcohol are better bets for the collapse. After that, then gold, silver and stones.

I dont know if there is a thread for this article or if its related to your thread, but just came across this...

www.businessinsider.com...

DP

reply to post by ImaFungi


Pretty interesting bet there, thanks for the link.

Anyone remember this thread from back in August 2007?
www.abovetopsecret.com...

That was about a year before Lehman and six months or so before Bear Sterns, and coming shortly after the "surprise"discount rate cut the night before opex that was leaked (we now know by current Sec Treasury then Fed NY president Tim Giethner).

Just as the common person is starting to dip their toes back into the market, the signs are there that we could be heading for another crash.

Here's the option chain for xlf mentioned in ImaFungi'slink.
xlf-options chain from yahoo

The bet mentioned in that business insider article is pretty damn obvious, but I see an even greater OI on the call side which leads me to believe it's either a spread, hedge, or someone spotted a really big arbitrage opportunity and piled in. Looking at other months chains there is even more interesting stuff. XLF is something I look at pretty regularly, but I can't remember seeing such huge OI in options chain on this ETF since '08 and '09. Whatever is going on seems to have a use by date of April 19th as months past that seem to have a more normal OI. I don't really know what to think as there is a near limitless way to use options, but the scale of it is very interesting.