Close all bank accounts now?

If the dollar is worthless can I quit my job? Maybe I should turn my back yard into a mini farm right next to my bomb shelter. We Americans who arent uber wealthy are screwed, the sad thing is this didnt just happen. We should have seen this coming at least since ohhhhh say 2003.

With everything so precarious right now I can't see being invested in anything. If we have a depression the markets are going to be tanked, but FDIC insured accounts were created to protect against losing your money as happened in the depression.

My biggest concern looking at the big picture is how much of the stock markets are retirement accounts, because how many people think about the fact that these accounts have no protection and are not covered by the FDIC insurance. Many 401k plans do not even have an option to "park" your money in an FDIC insured account, and many of these plans restrict when you can trade anyway (once a quarter is common). This is how people will get wiped out if a real crash happens, your future will vanish. As for IRA's, you may have more flexibility. I strongly recommend anyone who is uncomfortable with what is going on financially in the world to call there retirement account and see if there is any FDIC insured money market or other vehicle to sit in so you can wait out whatever is coming.

FDIC insurance is only for bank accounts, who knows what will happen to money in your mattress. If money becomes worthless you are screwed either way, but money in an insured account has some protection, as at least they are suppossed to bail you out. Money in a mattress might just be toilet paper - who knows.

you dont really have money "sitting in the bank." You have a money number associated to your account number, which is tied to your social security number.

it's just a big database of information, not an actual substance of value. The only thing that makes the US dollar worth anything, is faith - and faith alone. I don't see how taking money out of the bank will solve that. If going to such extremes, just invest in something that retains value (aka something backed by actual substance, like gold / natural resources / etc.)

Originally posted by bamaoutlaw
Given the current events going on now in USA like the falling value of the dollar, and the news of banking institutes being in trouble,recession and everything else related should i take withdraw all my savings from the bank? I feel like something big and bad is just right around the corner and would hate to have all my money sitting in the bank and not be able to obtain it. do you think all this will blow over and get better or maybe worse? i hate to think a sitx happened tomorrow and people have thousands in banks and they close for unknown period of time will we be sealing our fate?

Do not withdraw. Of course you can buy silver or gold or buy property, but this situation will get a real a mess when everybody withdraws. If US citizens do that it will be a massacre in 24 hours. (On the other hand,most have no savings to withdraw as it is ;-))
Just hang in there, banks will try to contain any problem and if necessary foreign banks will help. When US economy fails, it is bad for everybody, also China and Europe, so they will help if they can.

LETS JUST SAY EVERYBODY TOOK THERE MONEY OUT THE BANK,

well that would mean complet colapse and a rapid decent of your country so go start the bandwagon, and your all be in sh*t street

Originally posted by BRITWARRIOR
LETS JUST SAY EVERYBODY TOOK THERE MONEY OUT THE BANK,

How many people actually consider taking their money out of the bank? Bear in mind that ATS members look more thoroughly into things than the average Joe.

Taking all the money out of the banks in america will only lead to a quicker depression and worse times for all of the american people in a whole.

Originally posted by Mdv2

Originally posted by BRITWARRIOR
LETS JUST SAY EVERYBODY TOOK THERE MONEY OUT THE BANK,

How many people actually consider taking their money out of the bank? Bear in mind that ATS members look more thoroughly into things than the average Joe.

i can see that...

but its would be disaterious theres no two ways about that, so maybe looking abit fether into things would be a good start, that would be my addvice to the op but of course if it was just him it would not really matter im talking about a mass bank account closing exodus,

I thought I'd add in my 2 cents here.

I think those taking some money out of accounts are doing the right thing. If the banks tank completely, at least you have some money. The dollar may lose value but at least you have something. If you leave all your money in the bank, and you don't have gold, your left with NADA, NOTHING, ZERO!

Also I don't feel that taking your money out of the banks is going to make this recession/depression happen faster. The wheels are already off the bus and the breaks have failed. Standing around waiting to see the crash just doesn't seem very proactive to me. I'd rather be preparing for the end result.

Yes I know there is the FDIC, but it baffles my mind how many of you trust the insurance agencies. They are the same type of agencies that will tell you they will not cover your house after hurricane water damage, because the water was caused by the river that flooded when the storm surge come in!!!!!

My great-grand parents and grand parents were alive during the great depression, and (my grandparents were children) but what they told us is that the people that made out okay, are the ones that had some money in cash and were able to live off there own land and the community stuck together. That meant if you grew corn you traded that with the family that grew potatoes...etc. This still goes for those who live in suburbs and cities, if you or your wife can make blankets, or sew, or fix things you have a trading commodity.

So I say take your money, and buy things that will have true value. Seeds, yarn, sewing needles, fabrics, tools. They will have more value to you than a basement full of gold. Sure have some gold, but don't over estimate its worth, if everybody is hungry you can eat the gold!

[edit on 20-3-2008 by whoreallyknows]

[edit on 20-3-2008 by whoreallyknows]

[edit on 20-3-2008 by whoreallyknows]

reply to post by Mdv2


Gold and Silver hold no value- only the illusion of value- same as our paper money. If all hell breaks loose they will not be worth spit. Only Essential natural Resources will have true value -food water air, labor.Teh rest are merely Shiny objects to decieve you into a false sense of security. Best thing to do is Plant a garden, get to knowing your local Farmers. Learn a Real Trade that can be bartered for in return for resources. The 'Gold & silver' is in your Head and in your abilities. Not in Sparkling rocks

Banks do not operate like they did in the time of the great depression. Back then everyone tried to take out their money and the banks simply did not have enough.

Same is true today. But, the money is still there because of credit. The government protects your money in the bank (FDIC).

Also, taking your money out of a bank and buying gold. Take a minute and look at what your doing. First, the American dollar is a representation of..gold. Second, lets say you go out and buy thousands of dollars of gold. You loose money on the transaction buying because the person selling wants to make a profit. Third, where are you going to put that gold you just bought? If a person breaks into your house and steals your gold, tough luck. If they break into a bank and steals your money, your ok.

If you are truly concerned...ask financial experts. Face to face. Not from someone who knows a guy, or someones brother, or a web forum. Many will give you advice for free, but will do the leg work for a price.

The economy issue is a weak American dollar. Instead of panicking and wanting to take your money out of the economy (thus making it worse), invest it. Make the dollar work instead of just sitting there. At least sitting in the bank your money is helping the economy.

[edit on 20-3-2008 by Shadow_Lord]

I pay off my credit card on time, but what does a guy from Canada to do? Like our dollar dropped to 97 cents, oil dropped 5 dollars, people aren't believing me on the Amero issue, I hope Canada will be resilient enough and keep their dollar go go back to the pound

Originally posted by purple girl

Gold and Silver hold no value- only the illusion of value- same as our paper money. If all hell breaks loose they will not be worth spit. Only Essential natural Resources will have true value -food water air, labor.

I live in a country that was occupied by Nazi-Germany. The winter of '44 was extremely cold and there was a constant shortage of food. Many people died from hunger, but those who had silver and gold could and did trade it with farmers for food.

Apart from that, gold and silver have proven to keep their value in every crisis. Gold is easily tradable after a crisis, fiat money isnt.

The Dutch famine of 1944 (known as hongerwinter ("Hunger winter") in Dutch) was a famine that took place in the Netherlands during the winter of 1944-1945, near the end of World War II. Over 20,000 people died during the famine.

Source

[edit on 20-3-2008 by Mdv2]

Originally posted by Shadow_Lord
Also, taking your money out of a bank and buying gold. Take a minute and look at what your doing. First, the American dollar is a representation of..gold.

Er, no. The American dollar was originally backed by gold (remember the stories of all the gold in Fort Knox?), but it is no longer backed by anything except faith, as scientist pointed out above. To a certain degree, it is backed by oil through agreements with oil-supplying nations, but even that is failing now.

The economy issue is a weak American dollar. Instead of panicking and wanting to take your money out of the economy (thus making it worse), invest it. Make the dollar work instead of just sitting there. At least sitting in the bank your money is helping the economy.

I'll agree with this 100%, though. Just invest wisely, based on the serious changes that are coming down the pike. And STAY/GET OUT OF DEBT! It's the debt that has caused this mess in the first place.

TheRedneck

A couple of posters have pointed out that bank accounts are protected by the FDIC (up to a certain limit), which kind of made me chuckle. The government is broke and has been for some time. There is no money to cover what we might lose. And another poster was dead-on with the observation that it's all just information that gets moved back and forth. People keep getting a mental image of money actually moving between institutions and that's not how it works.

I stand by what I posted earlier in the thread. Keep your heads about you. Withdrawing based on your short-term budget is not a bad strategy for an emergency situation, but stuffing your mattress with your life savings is a little over the top, IMHO.

Originally posted by TheRedneck

The economy issue is a weak American dollar. Instead of panicking and wanting to take your money out of the economy (thus making it worse), invest it. Make the dollar work instead of just sitting there. At least sitting in the bank your money is helping the economy.

I'll agree with this 100%, though. Just invest wisely, based on the serious changes that are coming down the pike. And STAY/GET OUT OF DEBT! It's the debt that has caused this mess in the first place.

TheRedneck

I wish you guys all the best in investing to support the Dollar, but the Dollar is a lost cause, a sinking ship that cannot be rescued. I abandon the ship and so do many countries having a Dollar peg or Dollar reserves.

Originally posted by Sleuth
The government is broke and has been for some time. There is no money to cover what we might lose.

You are very right. If you purchase precious metals and store them at home you physically own something valuable. Shares and money in bank accounts is not physical and in times of crisis good for fueling the fire with.

And by buying a bunch of useless gold and silver and putting in in your basement, you destroy any chance you have to accumulate wealth through investing it. I think the dollar's going down and that we're going into a recession, but that's a normal part of an economy. Though I think the Federal Reserve may worsen the situation by encouraging inflation, I don't see any reason to flip out like this.

reply to post by bamaoutlaw



I'm no wall street economist, but I do know some things in the area of money.

first off if we decided to "close" our bank accounts it would destroy the economy completely. I remember a few years back the same thing was occuring in Aregentinia and Brazil. Their money system is set up like ours. My great uncle is actually on of the men in hte late 18 & early 1900's developed their banking and monetary systems. He worked for the American Bank Note Company. The people of these countries freaked out when the economy went bad and closed all their accounts. BIG BIG BIG PROBLEM. The money wasn't there. They did not have enough notes to cover the massive withdrawls. It created mass pandamonium.

Why? Because their cash just like ours because it has no real value. IT IS A DEBT ITSELF. THERE IS NO REAL VALUE. The US dollar used to be worth it's price in precious metal. Gold, or Silver. Now since the Federal Reserve Act there is no true value to our paper money. ( I think it was passed in 1913 ) The only way it has any value is if we believe it does. You don't have faith in the dollar and it won't have faith in you. The gold standard was taken away by Rosevelt ( spelling?) I think right before WWII it was 1933 or somewhere around then. The Untited States has been living a way of debt ever since.

Decide what you want. I should have bought gold last summer. It was $666 usd an ounce that day so I passed on the idea. Now it's over $1000 usd for the first time. It's only gonna go up. They have used it a currency globaly since it's discovery. Gold, Silver, Plat, Rhodium, and other precious metals ARE THE ONLY TRUE CURRENCY.

If that was any help you are welcome. Look on line you'll find it everwhere.