Guest Post by Martin Armstrong
People often ask if their money is safe in a regional bank. Yes—if you keep it under $250,000 to guarantee the FDIC insures those funds. Some clueless minds brainwashed into fighting the class warfare thought, “Oh well!” for people who had more than them in the bank and did not care if the Silicon Valley Bank or Signature Bank failed.
My phone did not stop ringing and the bankers wanted to know if they should cover ALL the deposits. I actually lost my voice, screaming, “YES YOU MUST COVER ALL THE DEPOSITS! ALL OF THEM!!!” Aside from the fact that no one deserves to lose their hard-earned money, the primary issue here is that failing to cover the deposits would have completely wiped out small businesses.
Small businesses comprise 70% of GDP and must be protected at all costs. They must park large sums in the bank to cover payroll to pay their employees and operational costs. Small businesses would come to a standstill and banks would fall like dominoes. Unemployment would spike and the entire economy would plummet. We would see a massive banking crisis if all small businesses went under. More banks will go broke, it is only a matter of time, but it is crucial that deposits are covered.
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Doesn’t really matter where you keep your money….it’s not safe from the biggest tax of all….inflation.
Convert it into durable goods while you have the opportunity.
Convert it into durable goods while you have the opportunity.
Cases of cig lighters.
Fire spark starters.
Cases Distilled liquor for trade.
Dry Ammo.
Batteries.
5v solar chargers.
Canned and dry goods.
Some 90% silver.
Socks.
Gloves.
Thread and needles.
Etc
_____
Hmm, I should get some of this crap..
“You can never have too many socks, you know
So that you can always throw away the ones with holes”
I wonder if we rediscover darning socks in the near future.
I must do some work around here, because I keep wearing out gloves.
Salt. If refrigeration fails, salt will preserve a number of things.
Yeah, ok. They called this guy for advice. Maybe they did actually call for advice on how to steal the money, this guy was good at it.
This has nothing to do with “class warfare” and everything to do with not changing the rules after the fact for a special group of people. Good for someone that has $500,000 or $2,000,000 in the bank, now get smarter. If you were smart enough in the first place to acquire that much capital in cash, you damn well better be smart enough to know the means of protecting it.
The banks should have failed. If we take everything at face value and pretend there is actually a safety net in place for $250,000 and less (per type of account per bank), then yes everything above that should not be bailed out.
The entities that own such accounts should have taken stock of their risk exposure and done something to mitigate it.
If you own a house worth $100,000 and have it insured for that amount, it would make sense that if you spent another $100,000 for renovations and made the value of the house worth $200,000 you ought to revisit your insurance policy to protect yourself. If the place burns down and you only had it insured for $100,000, it isn’t your neighbors’ fault or problem.
This isn’t a direct analogy, since the FDIC “insurance” shouldn’t be raised to infinity, however it is still apt.
The way things stand now, the banking system is just another religion. Though this one can be proven false with simple math. Only faith is keeping it going at this point; lose the mass faith and it crumbles into nothing.
Wrote an article and didn’t bother to look up that the FDIC doesn’t have enough funds to come even close to covering everyone. Not to mention, once the bank takes your money it’s not yours anymore and they can decide whether they want you to have it or not.
Two down votes for the truth. WUWT?
Some people are just too stupid and narcissistic to accept the truth. They think screaming at a cloud or a downvote will somehow change the reality of a situation.
No.
Who you callin’ a regional bank, Martin?
The only reason your small business is alive is because of Martin Armstrong….. He saved it for you.
How to save the banking system?? A Martin Armstrong call center….
Dowd was on Warroom this afternoon. Says this will be on par with or worse than the 1990-91 S&L banking crisis.
For a second I thought it said “Is your MONKEY safe….” hehe
No to both questions I guess.