Author Topic: Something fishy at the banks? (Read 2358 times)

Dulcamara · « **on:** March 11, 2008, 10:49:20 AM »

Last Saturday, I went to the bank and deposited cash into my account. Cash, mind you, not a check that needs processing. Now at my bank, traditionally, if you deposit anything on the weekend, you'll have to wait till Monday to get your funds. This is understandable. Even if it's cash, somebody has to process that info.

But something peculiar happened this time.

As I said, on Saturday, I deposited CASH. Ok, wait till Monday morning, and the funds will be there, right? Wrong. Monday morning: "pending." Monday around noon: pending. Monday afternoon: "pending." Okay... obviously it'll show up at the end of the day, right? After all, the online statement DOES say "daily balance." No problem... Late Monday night: pending.

Ok, finally I get suspicious. It's not like I handed them a check where there COULD have been a problem. So I mailed them and told them about it. This morning, I got this interesting message from my bank. Which sounds nice, but makes absolutely, positively no sense at all. I was reminded instantly of the whole "economy crash" thing and what not.

Here's the message:

"We have found it necessary to make changes in our current practice as to how and when we make funds available to our customers. Primarily, this change will allow __________ Bank a longer period of time to collect deposited funds. Our goal is to provide the best service possible while still protecting our valued customers as well as the bank from fraud and potential loss."

... Excuse me? I deposited CASH. That's US currency. If I deposit cash into my account, there can be no problems, and not really too much of a delay. Yet the bank is going to "make changes as to how and when" I can get my own cash?! To protect me from fraud?!

Anyone else experiencing this "protection" from their own cash at the bank?

Matthew · « **Reply #1 on:** March 11, 2008, 11:11:58 AM »

It sounds like you need to ditch that bank, whoever it is.

I must confess that I haven't had any problems like that with my bank -- or I'd be posting it here *grin*

But seriously, I have heard of problems like yours. It's very possible we will be seeing bank failures this year, and/or bank runs. You don't want to be fighting with hundreds of other people over what little money the bank has.

Remember, with Fractional Reserve Banking, the bank only needs to have 1/10 of the money everyone has deposited. So 90% of people looking for their money will be OUT OF LUCK.

Yes, I know there's FDIC insurance now, but it only has so many resources. If enough banks -- or big enough banks -- failed, it would quickly overwhelm the FDIC.

Long story short -- keep very little in the banks, keep plenty of cash on hand, and if you have a LOT of cash, then buy something more "hard" with it -- as in gold & silver.

Matthew

gladius_veritatis · « **Reply #2 on:** March 15, 2008, 03:54:56 PM »

Keeping some cash on hand for the short term is not a bad idea, as things will not transition from cash to precious metals overnight.

MaterDominici · « **Reply #3 on:** March 15, 2008, 04:19:51 PM »

There will soon not be much difference between having cash in the bank and having it under your mattress. You used to be able to say at least that keeping it in the bank was making you interest on your savings, but with interest rates dropping once again, you might as well put it back under the mattress.

I'd be very inclined to ditch my bank altogether if I wasn't so interested in keeping good records for personal budgeting purposes. But, for now, it still drives me crazy to pay for things with cash as there's no record of where the money was spent when you look in your wallet and find that it's all gone.

Pravoslavni · « **Reply #4 on:** March 17, 2008, 03:12:53 PM »

Quote from: MaterDominici

There will soon not be much difference between having cash in the bank and having it under your mattress. You used to be able to say at least that keeping it in the bank was making you interest on your savings, but with interest rates dropping once again, you might as well put it back under the mattress.

I'd be very inclined to ditch my bank altogether if I wasn't so interested in keeping good records for personal budgeting purposes. But, for now, it still drives me crazy to pay for things with cash as there's no record of where the money was spent when you look in your wallet and find that it's all gone.

What about the FDIC? Does anyone know how much money they have in reserve in case the banks collapse?

roscoe · « **Reply #5 on:** March 17, 2008, 03:23:08 PM »

This is all about a transition to the anti-christ's cashless society. It seems as if this will be a good thing according to MD.

roscoe · « **Reply #6 on:** March 17, 2008, 03:26:05 PM »

There was guest on John Batchelor's show(Drudge) last night who said the FDIC has more than enough funds to cover any mess that may occur--I don't think I believe him.

Matthew · « **Reply #7 on:** March 17, 2008, 03:54:44 PM »

That's not what I heard. The FDIC's cash vs. the value of all the deposits in the USA is quite a mismatch.

I wouldn't count on the FDIC...that would be my advice.

Just like you don't want to count on FEMA during a disaster -- whatever you can do to take care of yourself, you're that much ahead of the rest of the "childish" population that needs the government to survive at every turn.

A certain measure of self-reliance is proper to a rational man.

Matthew