I just got off the phone with a friend and she told me that she was withdrawing 100K and putting it in a safety deposit box. Has anybody else met other people who are doing this type of thing? She claims that lots of people are doing it but it is the first time I've heard about it; of couse, I don't get out much. Have common do you think this is?
Withdrawing cash is pointless. Worst case scenario, the fed will just print enough money for everybody. There will always be paper money available. the real question is, how much will that money be worth. If you are really worried about the financial system, you need to buy gold.
Morons do this type of nonsense. When your friend's bank shuts down she will not be able to access the safety deposit box. When all the banks in the world shut down paper money will be used as wall paper. People worried about financial collapse don't put their trust in a stack of paper. Those concerned about Armageddon already made proper preparations before Y2K and wasted their time and effort then.
This is what I feel. If things were to get that bad (and they won't), paper money would seem to be worthless in my opinion. Aaron Copeland pointed out that safety deposit boxes were sealed in the 20's crash. I don't think that is the place to put your money.
There have been LOTS of runs on banks, brokers, and money markets. They have been silent runs. I forget if it was Wachovia or WAMU but in their last week over 16 billion walked out the door. Banks and financial institutions have NO choice. It is your money and they have to GIVE it to you. The MINUTE they hesitate, it will be all over the internet that X bank is having trouble. Some it would say it is better to run on the bank before there is a run than wait too late. The reason for the run has NOTHING to do with the solvency of the banks. Americans have NO faith in their politicians, the financial leaders, and the corporate crowd. They have LIED and LIED time again about any and every thing. I BELIEVED Hankie and Benny when they said that the economy was on the edge of calamity. They evidently scared the BEJESUS out of those Congressional clowns as well. So I believed their assessment of the the calamitous potential, what I did not believe was they could avert it, when they had pretty much messed up in assessing the situation in the first place. At this point, it is not about do you trust your bank, but do you your Gubmint. As far as the stuff about sealing the safe deposit boxes, my reading is that it occurred as long as four years after the crash. FDR was NOT inaugurated until 1933. I thought the ONLY IDIOT IN AMERICA that thinks FDR was President when the market crashed is Joe Biden, and he thought FDR went on TELEVISION.