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Postperson
The Daughter of Indifference
Joined: Jul 10, 2004
Age: 51
Posts: 2904
Location: Uz
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 Posted: Fri Oct 10, 2008 2:40 pm Post subject: Is it time to take your money out of the bank? |
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...and keep it in a box at home or what?
anybody know what to do in this situation? |
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Fnord
Metasyntactic Variable
Joined: May 07, 2008
Posts: 3658
Location: Pantopia
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| Posted: Fri Oct 10, 2008 2:45 pm Post subject: |
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I took my money out of Bank of America about 11 years ago (rude treatment from tellers and managers), and put it all in a credit union. No worries and no regrets.
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patternist
Stirring the pot....
Joined: Jul 29, 2008
Age: 35
Posts: 1833
Location: wouldn't you like to know?
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| Posted: Fri Oct 10, 2008 2:51 pm Post subject: |
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Same here. Small, private, limited-risk credit union catering to a community with a stable economic base/good risk profile (USAA federal CU, started for employees of the insurance company that insures miltary officers and their dependents.) Not worried.
But I do owe 40% more than what my home is worth now, and live too far away form where I work. But that's Florida, for you.... |
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ValMikeSmith
Velociraptor
Joined: May 19, 2008
Posts: 488
Location: Stranger in a strange land
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| Posted: Fri Oct 10, 2008 3:00 pm Post subject: |
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Well, in the USA there is FDIC insurance on bank accounts up to 100,000 or 250,000 dollars.
So if you have a lot more than that in one account, take out only the "extra" and use it to buy NEEDS (food,etc.) and VALUABLES (like gold or other things to trade, NOT designer fashion accessories).
That's "Just my two cents" as they say. |
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DW_a_mom
Phoenix
Joined: Feb 23, 2008
Posts: 1251
Location: Northern California
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| Posted: Fri Oct 10, 2008 3:04 pm Post subject: |
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The money is insured. I'm not taking it out. 1/2% interest is better than nothing.
I'm letting my money market funds sit, as well. They would be fine if others weren't panicking and forcing them to sell off assets to cash out those wanting to get out. What goes down usually, eventually, goes back up. To the extent stock values represented the real worth of the companies, the market will recover. To the extent it was hot air, maybe not. But there isn't nearly as much hot air in it as there was in 1929, so there is only so far it can go down before wiser heads buy it back up and stabilize things.
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ascan
Phoenix
Joined: Feb 23, 2005
Posts: 1702
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| Posted: Fri Oct 10, 2008 3:21 pm Post subject: Re: Is it time to take your money out of the bank? |
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| Postperson wrote: | ...and keep it in a box at home or what?
anybody know what to do in this situation? |
You need to check if your government protects deposits, and if so up to what value. Even if you're below that threshold, it might be best to distribute it between several banks. You see, a guarantee doesn't mean you'll be able to get your hands on the money when you need it. If a bank goes under and has your money, it may take months, or years, to get it under any guarantee system. If you spread it around several, then even though you increase the risk of not being able to touch some, you reduce the risk of not being able to get any. It would also be wise to hold enough cash in the house to keep you going for a week or so if things really go to the dogs, and the banks stop filling the ATMs. Of course, there are security issues with that. |
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anna-banana
and yet it moves!
Joined: Aug 31, 2008
Age: 25
Posts: 1728
Location: Europe
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| Posted: Fri Oct 10, 2008 3:24 pm Post subject: |
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yeah, let's all panic and make the crisis even worse.
I'm keeping my deposits in my bank, it's guaranteed by the state so why would I follow the mob...
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Prof_Pretorius
troubled Soul
Joined: Aug 21, 2006
Age: 50
Posts: 4915
Location: Hiding in the attic of the Arkham Library
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| Posted: Fri Oct 10, 2008 3:24 pm Post subject: |
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My grandmother didn't trust banks. After she passed the family had to go through her house and find all the cash she had squirreled away. She was ahead of her time.
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ascan
Phoenix
Joined: Feb 23, 2005
Posts: 1702
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| Posted: Fri Oct 10, 2008 3:27 pm Post subject: |
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| anna-banana wrote: | | I'm keeping my deposits in my bank, it's guaranteed by the state so why would I follow the mob... |
Well, the state guarantee's great, but money's not much use when you can't get your hands on it. And if things really get bad, you can forget paying with plastic... |
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Postperson
The Daughter of Indifference
Joined: Jul 10, 2004
Age: 51
Posts: 2904
Location: Uz
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| Posted: Fri Oct 10, 2008 3:33 pm Post subject: |
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Money is not guaranteed in Australia but the big 4 banks here are regarded as a lot safer than overseas banks because we have much stronger financial regulation here and most banks are a lot less exposed to the US subprime mortgage bundle market. Parliament is currently tabling guarantee legislation but they only want to cover $20,000. I think the lack of regulation in other countries means they would have to guarantee savings. or that's the argument here anyway.
I'm not that worried about Oz banks, but it seems to be spiralling out of control this thing.
My parents were kids in the last Great Depression. They were very frugal people. 
I think some people will have almost no superannuation now. |
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caramateo
Pileated woodpecker
Joined: Sep 19, 2007
Posts: 189
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| Posted: Fri Oct 10, 2008 4:25 pm Post subject: |
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I wouldn't do that or even encourage it.
If you are gonna do it, keep it a secret. Why? When people panic and they all take out their savings the financial crisis gets even worse.
I would take out some money and keep it at a safe box in my house just for an emergency but I would keep doing deposits and using them to keep the economy on.
I've lived several crisis in the past, I'm from Mexico. When banks have no money the currency devaluates. |
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zebedee
Deinonychus
Joined: Dec 01, 2006
Posts: 311
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| Posted: Fri Oct 10, 2008 5:33 pm Post subject: |
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| caramateo wrote: |
I would take out some money and keep it at a safe box in my house just for an emergency |
also worth turning some of that money into universally acceptable currency such as silver coins. Silver isnt likely to lose its price and at least its something shiney to collect, plus wouldnt be susceptible to hyper-inflation like certain monetary systems. |
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ValMikeSmith
Velociraptor
Joined: May 19, 2008
Posts: 488
Location: Stranger in a strange land
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| Posted: Fri Oct 10, 2008 5:49 pm Post subject: |
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I suppose that if you have money that's not in the bank yet, then a safe place for it is bury it in a non-metallic container so it won't be metal-detected, and can't be stolen by burglars. Use either geocaching or surveying equipment to establish it's location. Don't make anything that looks obviously like a treasure map.
But if it loses it's value then doing that will be pointless.
And also, it doesn't do anyone any good while it is out of circulation. I think that changing the amount of money in circulation can be harmful whether it is increased or decreased. The money-SUPPLY MUST MEET DEMAND.
HOW MONEY REALLY WORKS educational video |
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musicforanna
Toucan
Joined: Jul 01, 2006
Age: 24
Posts: 280
Location: Kansas City, Missouri
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| Posted: Thu Oct 16, 2008 7:59 pm Post subject: |
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| Prof_Pretorius wrote: | | My grandmother didn't trust banks. After she passed the family had to go through her house and find all the cash she had squirreled away. She was ahead of her time. |
I had a great aunt like that, when she died, people found thousands of dollars stuffed into the walls, rugs and cushions of her farmhouse.  |
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musicforanna
Toucan
Joined: Jul 01, 2006
Age: 24
Posts: 280
Location: Kansas City, Missouri
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| Posted: Thu Oct 16, 2008 8:00 pm Post subject: |
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| caramateo wrote: | I wouldn't do that or even encourage it.
If you are gonna do it, keep it a secret. Why? When people panic and they all take out their savings the financial crisis gets even worse.
I would take out some money and keep it at a safe box in my house just for an emergency but I would keep doing deposits and using them to keep the economy on.
I've lived several crisis in the past, I'm from Mexico. When banks have no money the currency devaluates. |
great points. I'm not taking money out of my account... but then again, there's only $10 in there right now. There's not much I can do on $10. |
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