Close all bank accounts now?

Originally posted by Choronzon
Whoever is telling you to buy-buy-buy when their price is RIDICULOUSLY high is obviously NOT QUALIFIED to tell you what you should be investing in.

That's why I said you should have bought precious metals 1-2 years ago. $950 / ounce is a good price for current circumstances. You can wait till the next bank goes down and causes a domino effect. Prices will increase rapidly and not drop any time soon.

Hi bamaoutlaw. Evidently that first close above 1,000 was a bull trap, and we're getting our correction from the 1,030 top that was established in Asia on Monday. Hard to say, but this downdraft could eventually run as deep as the 800's. You might want to wait a bit and save $.

Probably not wise to panic...run out and put all of your money in precious metals. Anyway, there's plenty of time to educate yourself a bit. Then, if you believe as many do, that PM's are a still a good investment...visit your neighborhood coin shops, ask questions, and establish a relationship with the proprietors. Remember, eventually you'll need a place to liquidate, sometime quickly...local coin dealers can facilitate your sales. Ebay can be a little pricey - dicey - slow.

Maybe spend some time reading sites like The Contrary Investors Cafe, especially the forum & chat board.

GL

I might have to hit up the Pawn Shop for some gold!
I can buy it for dirt cheap from previously working there, and I bet that they still price it the same as before it went up!

I have had a bank tell me before they can't give it to me all at once before. Without notice. I said, "yes you can I am closing my account right now so give me my money." They were then force to give me my money.

It's not hard to switch banks some people act like its the end of the world to close an account. It's not and I got "MY" money right then and there. So many times I have walked into MY Bank and they tell me they can't give me MY money without a 24 hour notice or something. I think they are nuts. I tell them it's my money I put it there.

Today you are forced to have a bank. I mean no one will cash a payroll check without taking a percentage. It use to be any store or bank would cash a payroll check now only a bank you have an account with cashes them. They prefer direct deposits of your check. They hate it when you withdraw any cash. I usually withdraw most of it and use cash to pay for things. Mainly cause I hate the government knowing where I JUST ate at. Or how much I just spent shopping at a store. Or what movie I just saw. So I pay that stuff with cash.

So you can get your money out if you are closing an account. They don’t like it but they do it. Also, though depending on how much it really is you just may need to give a 24 hour notice its best to call and speak with a banker on that now and ask a few questions about your money.

[edit on 19-3-2008 by Shar]

IMHO the best place to put your cash right now is in the stock market. Go out and invest in a diversified mutual fund. Some of you may be saying, "hold up, the stock market looks miserable right now." It is true that the stock market looks misearable right now, which makes right now the best time to buy. You can buy stocks at a bargain and sell them off in a few years time when the market inevitably improves.

As an aside, I think wall street is finally correcting its thinking. I happenned to watch Cramer on TV the other day and he was telling people to buy stocks in order to get a a good dividend. Who would have thought that people would again buy stocks for the dividend?!

I read something recently written by a man living in a South American country when the bottom fell out of their currency and he said if he had it to do over again, he would not buy bullion, but gold rings instead (at pawn shops and such). He said at the markets, they would sell food for gold, but gave the same exchange rate for bullion as they did for 14k gold rings and chains, etc.

One thing nobody seems to be able to answer... for those of us up to out eyeballs in debt, how does an economic collapse affect us? I don't mean to sound like I don't care (I do - I pay my bills on time every month and am trying desperately to get out of debt) but if the dollar crashes I'm guessing it's almost good to be in debt... no?

I mean if the economy crashes, we're ALL in deep so wouldn't you almost want to be in debt (as opposed to having $100k in the bank)?

Originally posted by Shar
I have had a bank tell me before they can't give it to me all at once before. Without notice. I said, "yes you can I am closing my account right now so give me my money." They were then force to give me my money.

I wonder why we even put our money in banks (other than security - but they don't give it to you anyway!). What does it get YOU? A measly couple percent (which is then taxed). What's the point? You do get a new toaster when you open your account sometimes

[edit on 19-3-2008 by mecheng]

I have a few concerns which need to be resolved before I can come to what the best conclusion could be.

#1. Why would precious metals help you if the economy in the US breaks?
Some subpoints to consider:
a) Are you or the person you are trading with truly going to know the value of what you are trying to purchase vs. the amount of precious metals you are going to barter with?
b) Let us assume that you are going to need to drive to get to the place for trade (since most of America is spread out and walking may not be an option). Gas will probably be so expensive that we may not be able to afford gas.

#2. If we cannot afford gas, to get to work and get a paycheck, get to the trading stations, we will not be able to afford some luxeries also.
a) Electricity, say goodbye to refrigerated foods. (Do you think the electric companies will supply us with free electricity?
b) Water – Water companies will not supply us with free water.
c) Phone – If we can’t pay for it, it gets shut off.
d) Internet - If we can’t pay for it, it gets shut off.
e) Gas (Natural gas) - If we can’t pay for it, it gets shut off.
f) Mortgage – This I do not think they will act on taking our housing in mass crisis???? (I hope not)

You also have to consider the fact that at these companies, the employees may not be able to afford gasoline to get to work to man their stations. Main concern for this would be electricity and water.

If this situation were to occur, I think we would all be switching to survival mode: food, water, housing, and protection.

We could get some sources of food, by utilizing a garden in our backyards (assuming we have a backyard).

We could learn survival techniques to find and collect water. This may be harder in larger populated areas.

We could hunt for meat. If you are rural enough and have the proper knowledge.

There will be others wanting your resources and they would probably kill us for our supplies. Protection would be of utmost concern here. Weapons to properly defend you and your family will become a necessity.

Since there may not be electricity, we would need to know how to cook, keep warm, and keep cool without electricity. Fire making would serve to keep us warm, cook, and sterilize water (water purification tablets would be ideal, though).

Just some of the basics to consider before you invest into the wrong thing. There is obviously more to it than just what I have written, but this should give you a better idea on what we could be facing and what specifically would be important to survive.

Don't _close_ your bank account, just don't keep a lot of money in there. If we're all wrong, and the recession/depression isn't as bad as everyone thinks it will be...you will be glad you still have your accounts.

Oh Christ, don't listen to these guys. Don't take your money out of anywhere.

Invest it. Maybe in gold mining stocks?

I wouldn't invest in the stock market right now, the only thing that seems to be propping it up currently is the occasional decrease of the federal reserves interest percentage. It's already at what, like 2%? Can't go much lower, then what? After the currency has been reduced to crap, a pretty big decrease in the stock market is my guess.

As far as safe investments, commodities have been suggested by some of the rich, so coffee, wheat, corn, soybeans ect. With the food shortage and the increasing use of food for biofuels, it seems like a safe bet. I also have heard the yen and yuan are perhaps good investments. If/when China depegs their currency, you can bet that it will be worth a lot more than the dollar. At the very least with the yen and yuan, you will still be able to afford all the crap we buy from walmart if the dollar goes to heck.

As far as not taking your money out of the bank because it will hurt other people, what a bunch of crap. Do what's in your best interest and hope others do the same. It's like saying, "Don't sell that stock even though it's declining, selling it will hurt the other people that hold that stock." Do you think the rich share the same sentiment of doing what'd best for "everyone"?

[edit on 19-3-2008 by ghaleon12]

From what I've been reading so far.. those of us with money in the bank should leave it there to prevent the banks from failing, while you sell off your stocks and bullion at a nice, tidy profit.. Makes sense to me.

Take your money out forget everything buy weapons and ammo and alcohol. These will be huge trading items and you can use them for protection. Or you can meditate and find a better answer. But this one is easier

reply to post by Therisonlyone


This is the kind of illogical alarmism that ATS has too much of. It should be ignored.

First thing to do is not to panic. It depends on what bank you have your money in. Credit unions and small banks can collapse faster than large banks, but the large banks are the problem right now. And we do have the FDIC which insures accounts to $100K, assuming the Federal Government can pay when the time comes. If you do decide to withdrawe, I suggest you do it over a short time period, a couple thousand here, a couple thousand there... ease the pressure on the banks, and yet still get your cash, and don't alert Uncle Sam as to what you're doing. See this link.

No one really knows what is about to happen, so no one really knows what to do to soften the blow. My suggestion is simply to learn all you can about economics and watch the news. Whatever the general public is doing, is probably what you don't want to do. Gold right now appears to me to be in a bubble, and therefore subject to the same forces that wiped out the dot-coms and the housing market. True, gold/silver has always been the one thing that continued to hold some value, but that does not guarantee it will always be that one thing. And the price can drop! I agree with those who have spoken out in favor of holding off on gold/silver right now.

Commodities seem to be a better bet right now. The semi-precious metals like cobalt, chromium, copper, tungsten, lithium, and a host of others are needed in smaller quantities for any rebuilding that occurs after a train wreck. They are also more reasonably priced and have not been discovered by the panicking masses yet. They also do not have a shelf life when properly stored and you can take direct possession of them so you are not dependent on a broker to sell them later. Stocks are a big no-no, since they have no intrinsic value beyond what the company you hold does financially. If you're just set on stocks, try something that appears inevitable, like VeriChip. Should there be a massive uprising (not too wild an idea IMHO), no doubt they'll land some nice lucrative government security contracts.

Bonds? Forget it. Government bonds are a sure way to flush your money; it would give you more use if you started cookfires with it. Utilities depend on the ability of the masses to pay for services and energy, not a guaranteed outlook by any means.

As far as what to stockpile, should you choose to go that route, think about what you will need. That TV and DVD player won't do you a lot of good if there's no power, and it'll be pretty hard to cook on an electric stove as well. So either switch to something you can stockpile, like propane (with a BIG tank) or get yourself an electric generator. Make sure you have a few general-purpose firearms for protection and food, and don't forget ammo. And what I consider most important of all, understand where you live. Cities and suburbs could become very dangerous places to be amongst the rioting and looting that will probably occur.

But still, don't panic. It will be survivable, especially for those who have done some measure of preparation. And I think that just asking the question makes you one of those.

TheRedneck

reply to post by mecheng


I don’t think it is for security. I don’t feel safe with my money in a bank. I feel safer with it with me. I just think the government wants to know where people are putting their money and what they buy with it.

Most people don’t even see their paycheck anymore. Goes straight into an account for them. From there they use their debit cards to make purchases with. Which actually makes them spend more money then what they would if it was actual cash in hand IMO.

reply to post by Shar

A lot of businesses anymore don't even give you the option of receiving an actual paycheck or having your wages direct deposited into your account. When banks are possibly teetering on the brink of failing, that doesn't make me feel all warm and fuzzy inside.


[edit on 3/19/08 by LLoyd45]

Originally posted by Mdv2
This is what you should have done one/two years ago. However, the smartest thing to do is withdrawing ASAP and buy precious metals, primarily gold and silver.

If everybody did that the banking system would collapse and owning gold and silver would not protect you from the severe depression that would follow....who would buy the gold?!?!

Cash on hand in the bank is less than they owe investors because banks are also owed money by borrowers. If all investors attempt to withdraw without all borrowers being forced to settle at the same time then hey presto bank collpase. However, since debt can be traded as it is worth money, due to interest, all borrowers will still exist after a collapse. However, investors (that's you) are not worth anything so your savings go bye bye with the bank.

Panic runs on a bank are a self fulfilling prophecy.

Now if you wish to invest in stock then I would suggest avoiding US stocks at all costs. Gold is fairly safe but beware, the price will rise and when stocks settle the price of gold will fall back.

The time to buy gold was five years ago, not now. It is surely going to peak sometime soon and then fall. As for investment, unless you have experience in the stock market, money to spare and some big cojones, I wouldn't invest. If you have money in the bank, just leave it there, and watch the markets and exchange rates carefully over the next few weeks.

This is not the time for rash decisions and fearing the worst, it is such actions that have resulted in the recent turmoil. Its a crazy world, where a company can lose nearly all its value, based only on an unconfirmed rumour, from a less then trusted source. If you keep a watchful eye, you can make an informed decision and as long as you look a few times a day, you aren't very likely to suddenly lose loads of money.

Its almost like people want everything to go bad, so they can say the conspiracy theorists were right, despite the fact it will result in a serious decline in standard of living.