Watch the banks closely. Just saying, you can't trust those bastards.

[shockey80]

I am going to withdraw some of my savings and keep it safe the old fashioned way, in a lock box at home.

[still_one]

1. shockey if the banks go under, the government is gone, and those dollars that you would be keeping

in a lock box would be worthless in that case.

However, if you want to do that so you have cash on hand because of disruptions that are likely to occur, that makes sense

[durablend]

2. IDK what makes him think businesses will transact

[still_one]

6. Electronically I think transactions will still proceed. Problem will be for those who don't

transact electronically

Keeping some cash reverses isn't a bad idea

[getagrip_already]

3. Why?

What specifically worries you?

I suspect they will be insulated against loan defaults. The defaulties will receive no help though.

The only risk I can see is a traditional one. The institution holding your money goes insolvent and doesn't have funds to guarantee deposits.

If you keep your money in a place without federal insurance, you may want to move it to one that does. And keep each account under the insurance limits.

But most people don't have a lot of cash in a traditional bank.

What I worry about are investment funds. None of that is insured, and even if it's in a safe fund there in no guarantee you will be paid out.

[The Velveteen Ocelot]

4. The last thing we need right now is a run on the banks.

If that happens everything else in the financial system collapses. Your bank deposits are insured up to $250,000 by the FDIC. Don't panic.

[shockey80]

5. I am not panicking, I am only taking out some of my savings.

I am just saying, never trust banks, that's all.

[roamer65]

7. Be very careful of cash.

The paper is extremely good at absorbing bacteria and viruses.

I am running off from credit card and coin right now. Copper in the coins is a natural antiviral.

The Federal Reserve is quarantining US paper money coming back from Asia for 14 days right now.

If you get a large amount of cash. Have the bank put it into a ziploc sealed bag and quarantine it for at least 14 days.

[shockey80]

8. I can't do that. I can't be afraid of everything.

I took myself out of work. I am staying away from people. I wash my hands all the time. I cannot worry about getting the virus from everything, like money.

[roamer65]

10. It's ur life. Live it as you see fit.

Im just warning you and OTHERS of a known transmission route.

China is actively retiring old RMB notes and destroying them. Replacing with fresh ones.

[TreasonousBastard]

9. DON'T DO THAT! Sorry for the caps, but a run on the banks is the last thing we need now...

The fractional reserve system we've been using since, like, forever, means that the banks only have to keep a small percentage (5, 10,20%) of deposits actually in the bank. The rest they lend out.

This, amazingly enough, is how money is really created, through the multiplier effect, and has nothing to do with government printing presses.

It's also how bank runs, like during the Depression, really screwed things up and helped make things worse.

We have bank holidays, the Fed discount window, and now the the FDIC to reduce the worst effects, but they can only do so much. Besides, they are all ultimately based on Federal debt which we have too much of now.

[shockey80]

11. Whatever. Stop making it sound like I was calling for a bank run. Jesus fucking Christ.

Not trusting banks is a no brainer. That's all I was saying. There is nothing wrong with keeping some cash on hand.

[TreasonousBastard]

12. Advocating pulling cash from banks is calling for a run on the banks...

Everybody has a little cash lying around, and that's no big deal, but if you have too much lying around it is guaranteed to lose value due to inflation, may not be accepted by some vendors-- particularly online vendors and bill payments. Oh, and it can be stolen, so you still need the bank's safe to store it.

If you want to do it right, take some money out of the bank and buy gold. It is inflation protected, but you just have to find someone to sell it to.

At any rate, your point is mistrust of banks-- I'm saying that there are a lot more protections for bank accounts than bags of cash.

[Hearthrob]

13. FDIC

Is the federal insurance (FDIC) from the same pot as the 0% loan rate?