What would you do if your bank locked its doors?

by sammielee24 19 Replies latest jw friends

• 

  sammielee24

  Now that most of the major news sources are saying that the USA is already in a recession - will there be a run on the banks like there was in the UK in the fall?

  I know that the government insists that will never happen because they insure your funds up to a specific amount but so far already two banks have reduced the amount of money that you can withdraw from your account. They say its because of increased theft from their ATM machines but who's really willing to buy that excuse? So - if you heard a rumbling that your bank was in deep trouble, would you go down and try to withdraw your money or would you hope that even if it was closed that the government would stand by it's policy of paying you out in insurance?

  Both the phone and cable companies here have said that they are shutting off service due to non payment, faster than they can keep up with and let's face it - those are two services most of us can do without in order to cut our expenses, especially with the use of cell phones. This information is of real concern because it is another clear indicator that times are tough for many, many people.

  In reading about what is going on in Zimbabwe, it's scary to think that any country can get to that point in such a short time. No food, no electricity and no money in the bank to buy anything with even if you wanted to. Inflation is up over 2,000 % and the cost of a chicken there is more than a months salary. Milk is being purchased by the cup or out of a huge tank truck and what was once a great and wealthy country has fallen into abject poverty.

  Would you line up to take out your cash or hope for the best? sammieswife.
• 

  Brother Apostate

  Withdraw now.

  That's where we're all headed.

  Now is the time to learn to survive.

  All the World Bankers,

  And all their henchmen,

  Could never put Humpty

  together again.

  Coming soon.

  BA- Gettin' ready.
• 

  SnakesInTheTower

  sammieswife:

  Both the phone and cable companies here have said that they are shutting off service due to non payment, faster than they can keep up with and let's face it - those are two services most of us can do without in order to cut our expenses

  Ironically, i collect on cable accounts that are in past due status.... and people will let their phone and cable go....but hell no on their internet... they will pay that faster than anything....people are addicted to it (not that anyone around JWD would no anything about that...lol).

  The cable company I collect for will do a soft disconnect on the digital cable boxes...this gets some peoples attention, but not everyone.... but when they recentlyy started suspending their modems...ALL HELL BROKE LOOSE... now people are paying their bills before I can even get to their doors...bad for me.....(I am commission only based on collection rates)..... so the cable company has figured out the key to getting people to pay their bills...

  As for the main topic....I dont think the banks will lock their doors...we had the S&L issue here in the US back in the 80s/90s....1000+ S&Ls shut their doors....and government bail outs....setting the precedent for the likely current subprime loan bail out from the government.....

  here is my opinion...THE US DOLLAR IS THE ULTIMATE IN RELIGIOUS FAITH....as long as people worldwide have FAITH in the dollar, everything will be fine....please note this from wikipedia:

  Thus today the notes are backed only by the "full faith and credit of the U.S. government"—the government's ability to levy taxes to pay its debts. In another sense, because the notes are legal tender, they are "backed" by all the goods and services in the economy; they have value because the public accepts them in exchange for valued goods and services. Intrinsically they are worth the value of their ink and paper components

  if it ever gets to a point that the world markets dont trust the dollar...then...then....the banks will shut their doors or put severe limits on accessing your money.

  Snakes ()
• 

  dinah

  Snakes,

  We are getting there fast.
• 

  5go

  if it ever gets to a point that the world markets dont trust the dollar...then...then....the banks will shut their doors or put severe limits on accessing your money.
  

  Snakes ()

  Haven't you guys noticed they have been trying to do that. They make it more expensive and harder not to you directly though. They do it to the business owners with credit card charges and fees for accepting them even if you use debit.

  Also banks being bought out by others banks you think that would happen if every thing was going OK.
• 

  Brother Apostate

  THE US DOLLAR IS THE ULTIMATE IN RELIGIOUS FAITH

  Amen, Brother!

  If not the "ultimate", definitely high-ranking on the list.

  BA
• 

  Sad emo

  I think the UK bank you're thinking of is the Northern Rock BS?

  That had nothing to do with recession - they just lent out more money than they had, they borrowed money themselves in order to loan it to Joe Public, then I guess because fewer people were actually depositing money (cos we're all spending it rather than saving!), they struggled to pay back what they've borrowed. Then rumours started that the bank was bust...

  Actually, if the investors/depositors hadn't panicked and started withdrawing their money, the bank would have been in a good position because providing most people don't default on their loans and mortgages, all that money will be being paid back - so the bank will have regular income (plus interest) from the loans during a time when fewer people are actually depositing money.
• 

  5go

  BTW nothing I have no money just things of value.
• 

  SnakesInTheTower

  5go:

  Also banks being bought out by others banks you think that would happen if every thing was going OK.

  I worked for the federal reserve in the check processing division back before the Check 21 Act was passed in 2003.... we were just starting the process of scanning checks instead of forwarding the paper ones.... fast forward to 2008.... the Federal Reserve Bank itself (the US Central Bank) is in the process of combining its check processing operations around the country as it no longer flies bags of checks around the country..... ..and with the checks no longer physically travelling...forget about float time....gone...POOF....giving the banks even more opportunity to hit you for NSF fees, etc.

  and I cannot believe the number of mergers in the private banking industry.... even the credit unions are merging...mine was bought out by a larger one a few years ago.... not a good thing..the interest rate paid on savings is less than 1%.

  Snakes ()
• 

  Brother Apostate

  When deflation is tackled by creating new money in the form of debt to private banks, the result is a spiraling vortex of debt and price inflation. The better solution is to put debt-free money into consumers' pockets in the form of wages earned. Workers are increasingly losing their jobs to "outsourcing." A government exercising its sovereign right to issue money could pay those workers to build power plants using "clean" energy, high-speed trains, and other needed infrastructure. The government could then charge users a fee for these services, recycling the money from the government to the economy and back again, avoiding inflation.
  
  Other considerations aside, we simply cannot afford the bank bailouts coming down the pike. If it takes $300 billion to avert a market collapse precipitated by a few failing hedge funds, what will the price tag be when the $400-plus trillion derivatives bubble collapses? Rather than bailing out banks that have usurped our sovereign right to create money, we the people should skip the middlemen and create our own money, debt- and interest-free. As William Jennings Bryan said in a historic speech a century ago:
  
  [The bankers] tell us that the issue of paper money is a function of the bank and that the government ought to go out of the banking business. I stand with Jefferson . . . and tell them, as he did, that the issue of money is a function of the government and that the banks should go out of the governing business. . . . [W]hen we have restored the money of the Constitution, all other necessary reforms will be possible, and . . . until that is done there is no reform that can be accomplished.

  Full article here: