Do I need to pull my money out of the bank? Stock pile provisions? Get protection?

[NoodleyAppendage]

I know it's not a smart thing to do in normal times, but the horror story we're being sold by Jim Kramer and the like is a cash crisis on the level of the Great Depression. If the FDIC cannot cover all the banks going belly-up, isn't it a "smart move" to now pre-emptively remove my assets from my banking accounts? I'm worried. I have a wife and two young children to support and cannot afford to wait for FDIC to decide to refund my money months down the road.

For the first time in my life, I'm actually considering buying a gun for protection, as well. Again, not something I normally consider smart, but if the "shit's going down" I want to be prepared.

J

[rucky]

1. I'd pull it into an established, independent (local) bank.

That doesn't have to mainline from the Fed.

[AlCzervik]

2. i'm not selling anything, i've been through this before in 2000 and sold some

i've decided we're riding it out, also we only buy what we know, as for the 401k, i'm not even looking.

[NoodleyAppendage]

4. I understand, but the story we're being sold makes 2000 look like a walk-in-the-park.

Paycheck-to-paycheck families are not going to be able to weather even a temporary disruption of cash flow. This could get VERY NASTY...like martial law nasty.

J

[AlCzervik]

8. my problem is the tax load, we sell now and we will have issues in January.

The one account that worries me is the money market, that one i'm thinking of moving to a credit union where there is still logic and rational thinking.

[Mojorabbit]

14. I am pulling out

about 5k to keep hidden in the house till this shakes out. If everything shuts down at least I will be able to keep going for a little while. The rest I am leaving where it is. Hedging my bets just in case. I am also pumping up my pantry supplies.

[Virginia Dare]

20. I'd like to think we'll react to this the way our Grandparents did..

I don't think you'll need your gun, the robbery will already have occurred. Nobody will have anything to steal from each other.

The impression that I get from those who lived through the Great Depression is that people helped each other out as much as they could. My grandmother never turned a hungry stranger away from her door, even if it meant her family ate a little less.

Americans as a whole generally respond pretty well to a crisis, I hope we can keep that legacy going now.

You are smart to prepare for the worst though, hopefully it won't come to that.

[yy4me]

3. Had the same thought today. I went to the bank and talked to

one of their representatives. He assures me that all is well with them. Fine, I thought. BUT, what else can he say. All I have left is a meager bank account, If the banks go belly up, what the heck do we do then? Can anyone tell us what will happen if the worst case scenario comes to be?

I know, you think I'm being paranoid but I hate the thought of hearing "well, you should have been prepared."

[Naturalist]

26. Geez

Look, if you believe that the Government will have money to back your bank in case it fails, yep keep your money in the bank. I know your receiving a great interest rate on your money while it is in there. The bank has no reason to warn you since they are making up wards of 10% to 29% interest on your money. They are completely unbiased. There is a post on this web site about Silver State Bank. This woman lost $20,000. Oh, and one other thing. Banks don't have everyones deposited money on hand. They have numbers they can give back to you. If you think real real hard, it is possible that you might realize they use all our money to fund everything that they do. Without our money they couldn't make money on us. That is why they don't want a bank run. We fund the whole freaking mess. Now they want more. If you trust this bank and that the US government will be able to cover your deposits and don't have over $100,000 in it, then go with your gut instincts. Everything that I have reviewed on the 1929 crash is that up to, during and after the crash some people said "nothing to worry about, it's not going to happen, keep your money where it's at and the best one, this won't last long it will bounce right back." If we were to have a crash like the one in 1929, you will need at today's standards, around $500,000 in cash to make it through to the other end if you still have a job and your wages are only cut in half. Double that if you loose your job. I don't think people realize, that if we don't act now and change the system and get these crooks out, what kind position we are putting ourselves in.

[yy4me]

28. I know you are right. I guess I should rethink what I am doing.

If we all go down the tubes, I will not make it and millions of others will not either. I am 66, just laid off, very little $$$ and alone with no-one to advise me.
Shoot, This is insane, I worry for my children and all other Americans. We, as a nation, have become unrecognizable. I am afraid.

[Vanje]

5. You have money!??!

Buy food and gas.

[CoffeeCat]

6. I just posted about stockpiling...

Anyone who doesn't have a stockpile of non-perishable foods and everyday supplies--is leaving
themselves extremely vulnerable.

Start stockpiling everything from shampoo, toothpaste, food, toilet paper, medicines--thing that you would
buy anyway and eventually use.

I'm no economics expert. I don't think anyone knows for sure what is going to happen. However, a stockpile
of essentials will help you with any bad eventuality.

I have an entire room that is my stockpile--because I'm a "couponer." I get stuff free/nearly free from
the grocery store every week. I initially stockpiled to lower our monthly grocery bill, not because I
was preparing for the end times. However, I'm sure as hell glad that I have that stockpile now.

Start stockpiling now.

See my post here, about how to get boxes of Cheerios for 75 cents.
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4076845&mesg_id=4077051

[Virginia Dare]

22. Anybody I've ever known who lived through the Depression stockpiled..

and always kept a ready stash of cash hidden away. They also didn't buy anything they didn't NEED with credit.

[theoldman]

7. Not all banks will fold.

You are in a panic mode which is exactly what Bush wants.

Check your banks credit rating. I think Chase is still very solvent.

[NoodleyAppendage]

9. Hard not to be in "panic" mode when you have two small mouths to feed.

My children are not going to understand when they start to go hungry.

J

[AlCzervik]

11. are there any credit unions in you area that could join? That's exactly what i think

i'm going to do.

[NoodleyAppendage]

13. Good point. I'll look into this ASAP. Thanks!

I appreciate the good advice.

J

[CoffeeCat]

10. Being prepared is not being in panic mode...

In fact, being prepared can prevent panic.

How in the world could anyone NOT prepare? We're in the middle of a financial
crisis, and Bush is at the helm.

No one is saying that we need to run screaming in the streets--but why do
nothing based on what you think George Bush wants you to do?

Be prepared...for yourself, and your family.

It's just common sense.

[WheelWalker]

12. All of the above.

[flamingdem]

15. Fidelity and Schwab have SIPC and additional insurance on Money Markets

They have instruments to allow you to use the funds for check writing and ATM cash etc.

They seem a lot more reliable than some smaller banks. The biggest concern would be companies with exposure to financials, Lehman Bros. of course.

[NNN0LHI]

27. Do they insure against some wealthy shark snookering their money from them?

[madrchsod]

16. "the only thing we have to fear is fear itself"

there`s not going to be a collapse of the all banks and the fdic..


"the only thing we have to fear is fear itself" http://historymatters.gmu.edu/d/5057/

[ITsec]

17. We are prepared...

I saw this coming over 4 years ago, and started planning for this day.

Wifey and I have stocked up enough perishable, non-perishable food and other supplies to hole up 6 months or more if the SHTF tomorrow. We've been doing our own garden as well, and as such have stocked up on frozen and canned veggies.

We've also taken enough cash out of bank savings and socked it away in a safe place somewhere in or near our humble abode (not under the mattress) to last about the same amount of time, in the event of a banking crisis or other situation where ATM's didn't work, and stores weren't taking credit cards. The rest of our funds are in CD's and Money Market Savings at our local credit union, and easily accessible.

It's taken us a while to get to this point. 4 years ago we were $50K in credit debt, not including our mortgage. We went on a strict budget, and threw every cent into paying off that debt, and into savings. No entertainment, no eating out, nothing. We learned creative and cheap ways to cook top ramen. Today, all our credit cards, equity loans, auto, etc, all paid off. All we have now is the mortgage, and we're 5 years from paying that off.

As for your last protection option, for me anyway... all I will say is that I'll leave that as a surprise for anyone who thinks my shit somehow belongs to them. I don't want to have to ever use that option, but if it's a choice between my life, my wife's life, and the cretins, I absolutely know who will win that fight.

Do what thou wilt.

[Blue Diadem]

18. Check your bank or credit union rating.

http://www.bankrate.com/brm/safesound/ss_home.asp

I've been debating about keeping some cash on hand. We're a no-cash in hand family, everything runs through the bank/debit card/automatic deposits etc. We're also a paycheck to paycheck family now so having anything extra to keep on hand will be difficult. Our bank is listed as being pretty solid.

I'm stockpiling..but I usually do that for winter use since I'm in a rural area and can't always count on the small town having what we need. I'm planning on adding more though since no matter what happens, I keep hearing the price of food will be increasing.

I can't offer an answer on if you should get a weapon or not. That's a decision only you can make. We have always kept one but now have to get new ammo. I gave the old stuff to my ex-SIL when he took the shotgun to clean it up for us. It now works and looks as good as new but there's nothing to put it in right now. You have small children so you must take them into consideration and make sure it's absolutely secured if you get one. If you're not familiar with guns I'd suggest you get some training.

It's important not to panic. I know it's hard not to. Just keep your thinking focused and make plans.

Now is the time to learn how to live as cheaply as you can. If the shit hits the fan, you'll be prepared. If it doesn't, it's a great way to save money.

[NoodleyAppendage]

29. That's an AWESOME link! Thank you so much!

I appreciate it. One of our banks is 3-star, while the other is 4-star. Moving money to 4-star for the time being.

J

[Blue Diadem]

31. You're welcome, but I just found another one that differs in rating on mine.

I've had that original link for a while but decided to check out FDIC. FDIC doesn't give out their ratings but have listed others sites that do. Bankrate is one..so is Baur Financial. Baur rates mine as 3 stars, only adequate..a step above problematic where Bankrate gave it 4 stars. I'm going to have to wait to speak to my daughter and see what she can figure out from it. She used to work in a Treasury department at a bank.


Some at the link have a fee. Baur and Bankrate are free.

http://www.fdic.gov/bank/individual/bank/index.html

[seabeyond]

34. our two banks is five star and 1. i like that. we were going to put some in another

bank and rated 4 star and 2. though that is high end of normal still not as good as our other two.

that is a fun site. thanks

[Liberalynn]

37. Thank you

My bank has a four stars. Thanks for the additional link. Mine is rated four on that one too.

My sister has some money in ours but most in Chase which is rated a five, so we should do okay.

[MiniMe]

19. Pulling your money out now will hasten the crisis

Not very comforting, but true.

[Virginia Dare]

21. I think we need to prepare but not panic..

if we all panic en masse, it will make things worse for us. Think it out well. Assess your personal position and how best you can prepare yourself and your family for a possible coming financial crisis. Figure out exactly what it is you NEED in the next few months, and start from there.

[old mark]

23. We have full shelves , 2 full freezers, gas grill with 2 tanks of propane,

and a good selection of firearms and ammunition.1 car w/full tank of gas.
Getting cash and filling remaining car within a few days.

You are runniing a little late.

mark

[marions ghost]

25. are you

preparing for a hurricane or a long term economic downturn?

So what are you going to do when the freezer runs out, go around the neighborhood sticking up people with your guns?

[old mark]

32. We will be eating regularly, and I will be hunting

for more stuff to eat (regularly).

Forgot to mention, we are installing a wood burning stove and looking into solar panel electricity for backup for our nouse.

I'd be happy to send you a can of soup.

mark

[pleah]

24. I think we better get those guns before Oct. 1.

Just a suggestion.:shrug:

[Locrian]

30. chicago

...we got a full tank of gas, half a pack of cigarettes, it's dark, and we're wearing sunglasses.

Dont know why stockpiling made me think of that...

[pnutbutr]

33. Won't make any difference

If the banks go under and FDIC has to pay out it will cause massive inflation so your money will be worthless anyways.

[mmonk]

35. There currently is not a way to stem a run on banks.

So I hope people won't.

[galileoreloaded]

39. Sure there is. Bank Holiday, and armed soldiers. N/t

[Liberalynn]

36. Our local bank didn't go under during the Great Depression

and the same family still owns and operates it.

I am hoping against hope that the same calm unwavering intelligence the grandfather showed during that crisis was passed on through the generations.

[galileoreloaded]

38. I love the "stay in, the taxes will kill you crowd"....

you are a bankers wet dream. Money in a IRA or 401K and the prospect of double digit inflation, no thanks. But, I admire how trusting you all are. Research Argentinian austerity, and buy foreign currency.